Let the leads come to you
Shadforths associate and private client adviser Tony Gray is in an enviable position.
He generates so many referrals that he has to turn most prospective clients away.
Only one in four are considered suitable for Gray; the rest are passed on to fellow planners within the Tasmania-based planning group.
So how did Gray get to this point?
He specialised.
Gray deals exclusively with clients who want advice on either derivatives or self-managed super funds (SMSFs).
All of his business flows from referrals — sourced from both existing clients and financial planners within, and unconnected to Shadforths.
He attributes the strength of his referrals primarily to the specialist planning requirements of the derivatives and SMSF markets.
“Derivatives and SMSFs generate more referrals because you’re offering a service to clients that is less available than just the building of a general portfolio,” he says.
“If on top of that, you develop a reputation for offering clients good service, then you’re going to pick up more work than you can handle.”
It is a bonus that many other advisers are turned off by the growing regulation associated with both derivatives and SMSFs.
“The demand for specialist planners in both areas is growing, but planners are dissuaded by the compliance training involved,” Gray says.
And just how does Gray choose between the clients to keep and those to turn away?
His selective appraisal is based as much on the time required to service a potential client as it is on yield of a potential client’s portfolio.
“If a client sees things differently to the way I do, I could end up spending as much time on servicing him as on five of my existing clients,” Gray says.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
