Advisors and Alphabet Soup
He was the Triple Threat of financial advisors.
CFP?? Check. CFA?? Interestingly, also check. CLU?? The Triple Crown is complete.
Steve carries more Alphabet soup behind his name than the entire canned goods aisle at the grocery store.
"I just love studying, Jon! I devour this information!"
As admirable as that is, I paused before bracing for pushback.
"Steve, how much more revenue do you believe you're generating because you have the Triple Crown of advisor designations?"
"Hm... Hard to say. I don't recall the exact numbers, but I know our firm's grown steadily over the past 10 years or so since I started."
"And, how much of that growth do you directly contribute to you getting more designations?"
A hesitation, a furrowed few seconds, then, he responded.
"Here's the truth: I've added designations over the years to mostly stay sharp. If I'm being truly honest, though, I think my firm's growth has much more to do with other factors."
The next 15-minute data dive revealed that Steve's firm saw little perceivable growth in the immediate six-plus months after he received each major designation.
His net profit, gross profit, and DAR stayed unremarkably consistent with expected growth. However, there were spikes in a few key stretches. Time to investigate further...
The revenue spikes and opportunities are closely tied to key strategic partnerships, business growth conversations, and developing new connections.
Were Steve's freshly minted designations the catalysts for those relationships? Not even close. The newfound designations simply added to Steve's toolkit of technical expertise.
He could do more for his investor clients on the technical side, but relationships, connections, and face-to-face meetings were the real cash flow levers.
领英推荐
So, why did he continue adding more 'Alphabet soup' behind his name?
Because he bought the slippery belief that having more designations automagically equates to more alpha. It's the lie that being more technically certified somehow makes you a better advisor.
I see this trap play out over and over again with financial advisors, investment advisors, retirement advisors, or whatever your OSJ allows you to call yourself.
If you're stuck not knowing how to distinguish your industry expertise and stand out as a preeminent expert, adding another set of letters after your name is rarely the answer.
Developing your proprietary process, infusing more of your personal convictions into everyday conversations, and being a bit more contrarian about 'hot button' topics for investors are better investments in your firm's future (and profits).
Are designations beneficial? Absolutely, and there is a well-respected process for earning your rightful designations.
However, when you're ready to grow your advisory business, it's worth asking, "Do I need more technical skills, more relevant connections, or better messaging around my expertise?"
Sometimes, the answer is yes, add another designation. More often than not, it's better to double down on why your passion and conviction matter in your clients' minds.
After working with 250+ advisors and their teams one-on-one, I can assure you that adding more 'Alphabet soup' when your advisory business actually needs better prospecting practices and market positioning is a surefire way to miss key opportunities.
If your mountain of AUM is plateaued, if you're seeing a slip in your prospect-to-investor conversion rate, chances are you need more clarity, conviction, and certainty of process, not just another designation.
It's more likely your messaging - how you talk about what you do and how you do it as an advisor - that's where the incongruency lives. Fix that, and then, maybe you'll need to add another credential to your name.
Whenever you're ready, here are three ways I can help you grow your impact, income, and influence as a coach, consultant, or advisor: