Why your value prop as an advisor does not get you the same deal as the other guy.

At MPG, we hear it from advisors all the time about what other teams, buddies, or colleague’s deals looked like, and how they want the same deal as them. We also hear from advisors that their deal should be bigger or better because of an additional factor (assets, clients, experience etc.).?As we discussed last week, deals can differ from one person/team to the other. There are many different components involved in putting the deal together for both sides, no two deals are the same because no two teams or advisors are the same.

The following are a few things to keep in mind:

1.?????Are you the same size, scale, years of experience as the other person/team you are referring to too?

• Amount of experience is important, but also what type of experience. For example, an advisor who has built and developed his own book for 20 years may be viewed differently than an advisor who has 20 years of experience but spent the first 10 of them as an internal planner.
• The size of the individual’s practice and/or team. Is it multiple advisors? Will the advisors support staff be transitioning with them?

2.?????What does your book of business or practice look like? How many households? What is the mix of Brokerage vs. Fee-Based accounts? Is the T-12 production replicable?

• ?This is a HUGE factor as it varies from practice to practice. Many times, we find there are similarities in practice size or even T-12 production, but not complete duplication.
• Is previous production based on a couple of big annuity/insurance transactions or is it in more consistent products that have a trail for the advisor.
• Does the advisor have a few ultra-high net worth households or hundreds of smaller ones? Each firm looks at household size differently. Some firms have account minimums that may disqualify certain households.
• Does the practice utilize banking or trust services? Firms that offer similar services may value a practice more than a firm that doesn’t offer the same services/products.
• International vs Domestic clients? Some firms are not able to work with some international clients whereas other have specialized offices to assist.

3.?????Where are you located? Do you have the same geographical location as the one you are referencing?

• ?Location, location, location, this can matter because there can be different geographically or state specific factors that can alter products and practices (I.E. New York insurance regulations).
• Some firms will want to increase their presence in certain markets and will offer bigger deals to bring advisors in to increase growth those regions.
• Will you be moving into an existing office/branch, or will the firm be helping the advisor set-up their own office? Some firms will include office rent or relocation costs in their compensation package whereas other firms will give more money upfront but expect the advisor to pay for all the real estate costs. Similar offers in total compensation, but different amounts to the advisor.

4.?????What is your timeline and end game look like?

• Is the advisor ready to move soon or just starting to put out “feelers”.
• What time of year is the advisor moving? Each firm has different hiring goals and may offer bigger deals during different months or before they hit their hiring goals. MPG will help you navigate this.

5.?????Are your stories the same? (Your value proposition)

• ?Each advisor has their own story and that is what sets you apart from other advisors. It’s the same idea as when clients ask you what makes you different and why they should invest with you. What is your value proposition to your clients? MPG knows it is not the same and each firm will value each advisor’s value differently.

These are some of the questions you should look at when you are thinking about how your deal is looking compared to others. As we discussed last week there are so many factors that go into putting each deal together and that is why you need a guide to get through your transition journey. At the end of the day, the deal another advisor received might sound good, but does it really fit with your business? We like to remind advisors that their practices vary and have different nuances, and that is what gives it individuality and makes it different. It is those things that #Brokerdealers and #RIAs look at to see if you are a fit. ?Here at MPG we able to help each advisor or team navigate this process and help them receive the best deal for them.