Advisor teams can help deliver differentiated value by featuring specialists in diverse areas of financial planning. Teaming can help you offer expertise in specific niche markets. For instance, you might set your practice apart by adding members to your team who focus on the complex planning needs of high-net-worth clients.
And teaming can make a big difference to your bottom line — teams grow six times faster. For example, Ameriprise financial advisors in multi-producer teams realized growth of 18% compared with 3% for solo practices.1 Working together can result in significant benefits to advisors, from helping you increase productivity and gain exposure to new markets, to sharing best practices and growing professionally as you learn from each other.
If you’re interested in teaming, look for a firm that will set you up for success by offering the support and resources that you need.
Firms that support teaming and offer resources to help you along the way can provide a meaningful advantage as you expand. Technology platforms that provide access to all team members can deliver cost savings and drive efficiencies so you can spend more time focusing on your clients.
Tailoring a team’s compensation structure to match its unique business model is essential — whether it’s simple or complex. For instance, splitting revenue at the account or product level (versus the client level) helps support specialization among teams. This can result in more objective overall compensation.
To support long-term success, develop and document your compensation philosophy — explain the “why” behind team members’ pay, and create a framework for consistency.
Look for a firm that offers support for protecting your practice as it evolves or changes hands, that could include referral services for legal support. Legal guidance can be especially helpful with continuity plans. While approximately 30% of advisors don’t have a business succession plan in place,2 building a team practice can be a good initial step toward planning and minimizing future disruption to clients.
If you’re thinking about teaming, start by evaluating your current strengths and opportunity areas, and begin defining your overall vision. Then look for a firm that complements your practice and can help take your initial ideas to fruition by making available the structure and resources that best support your needs.
To learn more about teaming options, resourcing and support, call 1.866.806.9984.