We’ve taken the bent on this blog that content sells advisory services. As competition for a shrinking asset base in the U.S. increases, creating custom content — ebooks, newsletters, etc. — can help you target your perfect customer with value-add from the beginning of the relationship. By providing value and differentiation from step 1, a financial advisor or broker can immediately distinguish himself from his competition. More than that, it also opens up various revenue channels — some old, some new, as well.
Kristen McNamara writes extremely well for Dow Jones on the various business issues facing financial advisors. A recent article, To Stand Out, Pitch Yourself, describes the evolution of the content-driven strategy that is now taking hold at the major wirehouses.
According to McNamara:
Some large brokerage firms, including Merrill Lynch & Co. (NYSE:MER) (MER) and Raymond James Financial Inc. (NYSE:RJF) (RJF), currently or will soon allow financial advisors to create their own custom marketing pieces.
This is an amazing development. It’s a huge milestone that these large financial firms are permitting their advisors to create custom marketing materials in an onerous environment of compliance regulations. It’s also incredible that these firms are actually providing resources to help their advisors create these so called, pitch books.
Again, from McNamara:
Merrill Lynch (NYSE:MER) , in response to advisor demand, is rolling out a new program to enable its advisors to create custom brochures highlighting their specific strengths and ability to harness the resources of the entire firm, says Steve Samuels, first vice president and director of global training and organizational design.
The program is in test-pilot mode due to the technology involved. Merrill expects to make it available to the firm’s full brokerage force in a matter of months, Samuels says.
I’m sure in the beginning of this process, these firms will merely approve numerous slides created in-house for inclusion in advisor materials. It will take more time to develop the internal processes for approval of actual individual materials. Regardless of timelines, though, this is the future of the New Rules of Investing — both advisors and investors locating each other and working together in new models.
Key to McNamara’s thesis is that success comes in this age by pitching capabilities, not products. And even more, honing that pitch to the right prospect. Says McNamara, “Investment products and service offerings vary little from firm to firm. What differentiates an advisor, and what many have difficulty conveying, is his or her ability to uncover and meet clients’ individual needs.”
This, dear reader, is the $1,000,000,000,000 question. We’re just at the beginning of the race.
Additional Resouces
- Check out our resources for creating newsletters for financial advisors or anyone who wants to start publishing their own investment letter.
- Don’t miss our ebook, How to Start a Profitable Investment Newsletter (pdf)
- Please sign up for a free subscription to our weekly updates at New Rules of Investing
