How to outperform

A new PriceMetrix report reveals how to predict an advisor’s success.

Turns out, experience doesn’t matter.

“The data showed no clear relationship between experience and future production. Experience had a negligible effect on predicted future production. Below-average producers, average producers and outperformers are found in roughly equal numbers at all levels of experience,” says the report, Moneyball for Advisors.

Further, “An advisor who becomes a top producer after five years is a more attractive prospect [for a firm to hire] than an advisor who reaches the same level of production after 20: the advisor with five years experience is on a higher growth trajectory.”

Read: Surviving the early years

So what does make a difference?

“We discovered that for every high-asset household (defined as those with $250,000 or more in investable assets) in an advisor’s book, predicted future annual revenue is expected to increase by $1,650,” the report says.

It adds advisors who have households with multiple accounts also tend to be more successful.

Read: Small accounts are a drag: PriceMetrix

To position yourself for future growth, the report suggests:

• Acquire only households with greater than $250,000 in assets
• If households have less than $250,000 in assets, move them to another service channel
• Cross sell your households, starting with retirement accounts
• Focus your new product sales energies on fee and managed business

Read the full report here.

Melissa Shin

Melissa worked with Advisor.ca from 2011 to 2024, most recently as the editorial director.