TD Ameritrade Institutional Highlights Five Strategies to Help RIAs Drive – and Sustain – Transformational Growth

Registered investment advisors (RIAs) devote their careers to helping investors plan for their long-term financial needs, but only a small minority have taken time to map out the future expansion of their own firms.

Pursuing growth that’s sustainable over time requires a thoughtful plan featuring innovative business development approaches and, sometimes, a willingness to do things differently. It’s also about connecting with the right people. To help RIAs implement such a plan, TD Ameritrade Institutional1 has unveiled Breakout GrowthTM, a comprehensive, integrated practice management program that gives advisors the tools and guidance they need plus ongoing support.

The latest installment in the Breakout Growth program series, Advanced Strategies to Attract the Right Clients, features strategies and tactics RIAs can pursue to forge strategic relationships: attracting clients who not only bring in assets but strongly recommend the advisor to peers. Advisors can make their firms indispensable to a well-defined community of investors by using strategies across five key categories:

• Niche Marketing – Define ideal clients and tailor their marketing to that niche
• Branding – Create a brand that differentiates their firm
• Pricing – Develop a fee model that reflects the value advisors deliver
• Strategic Relationships – Cultivate clients who generate quality client introductions
• High-Impact Events – Host unique, engaging events that please clients and attract prospects

But it all starts with a plan. FA Insight in a recent study found that standout firms spent twice as much time on business development activities as those from firms facing growth challenges.2 The research firm said only a third of advisors achieved sustainable growth, and avoided growing pains, by following a well-designed plan.

“Over the years we’ve found the best firms had detailed plans for expansion, with strategies to increase assets in any environment. We encourage other RIAs to follow their example by creating a plan that can drive growth now and into the future,” said Jim Dario, managing director, TD Ameritrade Institutional Products and Strategy. “With our Breakout Growth strategies and the support of our solutions consultants, we believe advisors can achieve tremendous results.”

To mark this year’s Breakout Growth program launch, TD Ameritrade Institutional has highlighted five strategies to help advisors kick-start their growth.

1) Define your ideal client

Advisors who focus on a well-defined niche can pursue faster, and more profitable growth while also deepening client relationships. By focusing on a specialized group, RIAs may become an established source within that niche and position themselves to receive more rewarding client introductions. A true niche is more specialized than just “women” or “executives,” but rather sub-groups – say, orthodontists in Orange County or dentists in Miami – with whom RIAs have a personal connection.

2) Create a brand that resonates with your ideal clients

A great brand shows what makes a firm unique and communicates its values in ways that evoke positive emotions and strengthen client connections. Branding is the “special sauce” that attracts clients. Without it, advisors miss an opportunity to emphasize their strengths.

3) Cultivate more rewarding client relationships

Advisors can cultivate rewarding relationships by taking a planned approach to generating client introductions. Referrals are not enough. Rather RIAs should cultivate strategic introductions, which means the client introduces a prospect to the advisor personally. An Oechsli Institute study found 70 percent of affluent investors will offer unsolicited personal introductions to their primary financial advisor “if they like, trust and respect” the advisor. But advisors must be proactive in orchestrating these introductions and referrals.3

4) Deliver Engaging Experiences

Creating high-impact events is one of the most effective strategies by which RIAs can personally connect with clients, attract prospects and raise their profile within a niche. Events don’t have to be large or complicated — they can be as simple as inviting an author to speak to a group or hosting a wine-tasting — just so long as advisors create a social environment that also feels special. Some 72 percent of wealthy investors said they were more likely to introduce friends to an advisor if that advisor relationship were both business and social.4

5) Price services to reflect value

Pricing should reflect the value delivered by advisors and generate suitable margins for the firm. At 71 percent of firms, asset-based management fees cover a range of services beyond money management. So while this model is clear and easy to understand, “bundled” pricing can lead clients to undervalue services they don’t pay for explicitly. Among standout firms, 56 percent have introduced a minimum fee, versus less than half of growth-challenged firms.2 Advisors, though, must clearly communicate reasons for price changes to clients.

To Learn More

The Breakout Growth program features a wealth of resources and content, including modular tools and guidebooks, a series of live webcasts and in-person workshops, plus ongoing access to TD Ameritrade Institutional solutions consultants.

TD Ameritrade Institutional clients can access Breakout Growth program resources through TD Ameritrade Institutional Education Center or through their Veo® account. Other advisors can call (800) 934-6124 for more information, click here to watch an introductory video or visit www.tdainstitutional.com.

TD Ameritrade, Inc., is separate from and not affiliated with FA Insight, The Oechsli Institute or Horsesmouth LLC, and is not responsible their policies, services or products.

The information in the Breakout Growth program is intended to provide a general overview about the topics covered and to help you identify opportunities in your practice and important issues you may wish to consider in developing a strategy to pursue growth. Because TD Ameritrade Institutional does not provide legal, tax or compliance advice, this information is not intended to be relied upon as such. While TD Ameritrade Institutional hopes that you find this information educational and thought-provoking, you need to determine whether the information is appropriate and applicable to you and your firm. You should consult with attorneys or compliance experts that understand your particular circumstances before utilizing any of the ideas presented here in your practice.

1 TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.
22014 FA Insight Study of Advisory Firms: Growth By Design. To learn more, visit www.fainsight.com or call (206)-826-4382
3 The Oechsli Institute, 2010: Affluent Investor Study
4 The Oechsli Institute, 2011: The Secrets of Successful Intimate Client Events

About TD Ameritrade Institutional
TD Ameritrade Institutional is a leading provider of comprehensive brokerage and custody services to over 4,500 fee-based, independent registered investment advisors and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.

About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors turn to TD Ameritrade’s (NYSE: AMTD) technology, people and education resources to help make investing and trading easier. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 39 years.. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League for the 2014, 2015 and 2016 seasons, TD Ameritrade has time and again been recognized as a leader in investment services. Visit TD Ameritrade's newsroom or amtd.com for more information.

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Source: TD Ameritrade Holding Corporation