Financial Advisor Hierarchy of Income | Earning Pyramid
When I work with financial advisor clients, I encourage them to step out of being a Generalist! There are thousands of advisors out there working in all kinds of business models: Wirehouses, broker dealers, RIA’s. However, the vast majority of advisors are Generalists. In order to make a name for yourself as an advisor, you must step out of being average.
Level 1: Financial Advisor Generalist
Along the bottom of the pyramid you have the Financial Advisor Generalist who works with anyone and everyone, or as I like to say “a generalist who works with anyone really works with no one” in the eyes of clients.
Level 2: Financial Advisor Specialist
The next level up is the Financial Advisor Specialist who declares a Target Market. I like my clients to have up to 3 target markets that are profitable and authentic for the advisor to attract.
Level 3: Financial Advisor Certified Specialist.
This might be an advisor with a credential that relates to their Target Market. So an advisor who works with women who also has the CDFA (Certified Divorce Financial Analyst). Or an advisor who focuses on Retirees and has a CRPC (Chartered Retirement Planning Counselor) or a RICP® (Retirement Income Certified Professional®).
Level 4: Financial Advisor Certified Specialist AND Expert Authority.
This might be a financial advisor who’s Target Market is women, has a CDFA, and blogs or writes white papers about women and finance on a custom, branded website.
Level 5: Financial Advisor celebrity like Suze Orman or Ric Edelman
The higher up the pyramid, the more income you make and the more an advisor will be paid for WHO they are to their target market, than they are paid for what they do or what they sell.
I am very strategic in my approach working with advisors to grow their firms. You will stand out from the crowd. You will have an authentic Value Proposition. Your brand will position you as unique in the market place! And this will enable you to be more referable and earn more income.