For growth-focused advisors, partnerships can be the secret to success. Whether you’re interested in bringing another advisor into your firm or forming strategic alliances that could help meet your clients’ needs, there are benefits to building collaborative relationships. But forming a financial advisor partnership requires strategy and planning to ensure that it’s a good fit.
Ready to grow your client base? SmartAsset AMP can help connect you with leads.
How Partnerships Benefit Financial Advisors
Partnerships can give financial advisors the room and capabilities they need to grow. But what that looks like largely depends on the type of partnership you’re forming.
For example, bringing in another advisor to your firm can allow you to:
- Expand the range of services your firm offers
- Target a new niche or client base
- Increase your productivity, while leaning into your specific strengths
- Further business development in an organized, strategic way
When you’re able to deliver a better experience to your current clients, you also have more of an opportunity to grow – satisfied clients can help drive referrals, leaving you with time to devote to marketing and promotion.
Strategic partnerships, meanwhile, can help you remain competitive by giving you access to the latest technology while reducing the amount of time you might need to spend on day-to-day operational tasks. Partnerships can also add value for clients, as well as increase client engagement and loyalty.
Forming a Financial Advisor Partnership
If you’re interested in sharing the workload with another advisor, you’ll need to find the right person to work with. That means understanding what your strengths are and what complementary skills or traits you’re looking for in a partner.
It might be helpful to complete a self-assessment, which could include the following questions:
- Where are you most competent and confident in running the business?
- What specific strengths do you bring to the table?
- Where do you fall short? In other words, what are your weaknesses?
- What are your short- and long-term goals, and how do they correlate to your firm’s overall vision?
- What problems do you have that you would like help solving?
- With what personality types are you most compatible?
You could also consider the type of role you want to assume once you have a partner on board, and how a shift in ownership might affect your personal brand. If you’re more introverted, for instance, you might lean toward working with a partner who’s more comfortable being the “face” of your firm.
Once you know what kind of individual you want to partner with, the next step is finding a person to fill that role. The following are some of the ways you might start your search for a partner:
- Tap into your network. Start by putting out feelers through your professional network that you’re looking for an advisor to partner with. You may know an advisor, directly or indirectly, who’s looking for the same thing you are.
- Attend professional events. Financial advisor conferences are another opportunity to make new connections that could lead to a partnership. When broaching the subject with a potential partner, be prepared to highlight the benefits of the arrangement for both sides.
- Look internally. If you have one or more junior advisors working in your firm, one of them could be a candidate. Hiring internally could also make the transition into a partnership smoother since you’re both familiar with the firm’s culture and business practices.
If possible, you may try a test run to see how well the two of you partner up. Making time for extensive discussions can also help you identify potential friction points or other obstacles to your firm’s success.
Building Strategic Partnerships to Grow Your Business
Forming strategic partnerships with other businesses is another way to further your firm’s growth. After all, the most effective partnerships are the ones that are driven by a common goal.
There are different ways to build strategic partnerships as an advisor. And depending on your goals, you may choose to:
- Focus on building centers of influence with professionals in related fields, which could lead to more referral traffic.
- Engage platforms that offer technology solutions for advisors, such as an advisor marketing platform that helps match you with leads.
When considering which partnerships to enter, revisit your goals. For example, are you interested in reaching potential clients through referrals? Do you want to streamline back-office processes so that you have more time to focus on clients? Or maybe your goals pertain to something else?
Building centers of influence means nurturing relationships with other professionals who may be able to send new clients your way. And you can’t expect someone to refer clients to you if they don’t know who you are or what your business does.
If you’re looking for partnerships with service providers, consider what type of services or tech innovations your firm could benefit from the most. You should also evaluate your potential return on investment as well as the level of service you can expect from the provider.
Frequently Asked Questions (FAQs)
How Do Strategic Partnerships Work?
Strategic partnerships work as mutually beneficial arrangements. For example, an advisor who partners with a marketing platform can get the benefit of finding qualified leads to work with, while freeing up time in their schedule. The marketing platform, meanwhile, benefits from the revenue the partnership brings in.
What’s the Most Important Factor When Choosing a Financial Advisor Partner?
The most important thing to consider when selecting a partner for your advisory firm is compatibility, whether you’re looking for an advisor to join forces with, or you’re looking to build strategic partnerships with other businesses. If the partnership is a mismatch in terms of goals, vision or personality, it could hinder your success.
How Many Clients Should One Financial Advisor Have?
There’s no specific number of clients an advisor should have, though experts may recommend having anywhere from 50 to 150 clients at a given time. The optimum number of clients is determined by your goals and your ability to meet their needs efficiently and effectively.
Bottom Line
Exploring financial advisor partnership opportunities may be on your radar if you’re ready to level up your business, or enhance the services you provide to clients. Evaluating where your business is now and where you’d like to take it can help you determine the type of partnership arrangement that makes the most sense for you, your firm and your clients.
Tips for Growing Your Advisory Business
- Marketing has never been more important in the crowded advisory landscape. But for many advisors, it’s time-consuming and cost intensive. Working with an advisor marketing platform can free up some of your time so you can focus on other tasks. SmartAsset AMP can help match you with leads while giving you the tools you need to follow up. Schedule a demo to learn more about how it can potentially help you grow your business.
- Partnering with online service providers can streamline your daily workflow and reduce the amount of time you spend on day-to-day tasks. One thing to consider when choosing a partner is compliance and how the platform addresses those needs. Integration capabilities are also important – you want any additions to your tech stack to be as seamless as possible.
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