Value of Integrated Finance to an Advisor

Adrian B Early, Ph.D., MBA, CFP®
Chief Investment Officer, shareGRO™ Practice

If you want to go fast, travel alone. If you want to go far, travel together. 

– African Proverb

What improves the profitability of an investment advisory firm?

In a simple form, it is Return On Investment (ROI). It is the present value of the lifetime revenue from an average client, divided by the cost to acquire that customer. For wealth management:

  1. Total client capital invested helps tremendously (including new investments over time).
  2. Time the client stays with you helps, so the Retention rate is important.
  3. Any reduction in the cost of acquiring a client is quite beneficial.

Let us explore the parts of (NPV of lifetime value per unit acquisition cost) for Advisor benefit:

Total capital invested and Total Lifetime Value

Increasing the number and value of financial needs you fulfill, brings more assets per client (of a given net worth), increasing your effectiveness and profitability. Traditional Financial Advisors can increase this by selling insurance, doing financial plans, etc. shareGRO™ Practice Advisors do this by integrating and serving the full range of client needs through integrated financial service products, including self – insurance to help guard client assets as they grow.

Client Retention and Longevity

Serving the full needs of clients simply and robustly helps keep those clients happy and with the Advisor, plus adding more over time, especially if they see the value of investing early in life, and the benefits of building financial freedom (and assets) quickly. The shareGRO™ Practice of sharing into accounts smaller than average helps attract people early in life. This starts sooner and builds faster, the growth of substantial value for both clients and the Advisor. All this is enhanced by the desire, especially of new generations, of changing the world for the better.

Reduced Client Acquisition Cost

Delighted clients tell others about their insight in choosing well. This can help reduce the effort needed to gather a clientele. It is our goal that the shareGRO™ Practice be compelling enough that its propagation goes viral. As stories grow about actual people helped through this world changing, simple, integrated financial service, it will become relatively easy comparatively, to sell new clients on its value, lowering client acquisition costs dramatically vs. the alternatives.

While competitors are further bloodying the red ocean of high net worth investors, might you consider casting the net in the blue ocean of ordinary people to solve more needs simply, effectively, and profitably, so they help promote to friends, family, and professional colleagues? As you help grow their financial freedom (and businesses), many will become high net worth individuals, bringing other “ordinary” folks whose lives you can transform for mutual benefit.

Estimating Net Present Value of a Client

At the shareGRO™ Practice, we have an Excel application to estimate the NPV value of a new client. An example (without the intermediate info) is given below.

 

 

May your Advisory practice empower clients, free the world, and (as a byproduct) exceed your life goals.

 

© 2017 shareGRO™ Practice

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Written by Dr. Adrian B. Early, founder and CEO of shareGRO Practice, a division of StockRoller, Inc.

YOU'RE ALMOST THERE!

[It's Your Free Gift From Us]
ENTER YOUR EMAIL ADDRESS BELOW AND WE WILL EMAIL YOU THE FREE PLAN OUTLINING TOOL RIGHT AWAY
Created by Dr. Adrian B. Early, founder and CEO of shareGRO Practice, a division of StockRoller, Inc.