Every coaching program for financial advisors starts with a business analysis. They are all based on the premise of the 80/20 rule. 80% of your business comes from 20% of your clients. In fact my firm has been preaching this theory for years and has even gone as far as not paying it's financial advisors for any business transacted in households that have less than $100,000. The idea is that your time is better spent on your top 20% of your clients than "wasting it" on the other 80%.
The one drawback of this theory is that you need to bring in new assets to continue to grow your business. If you just concentrate on your top 20%, they are still only going to do 80% of the business. Therefore you need to squeeze more business from your top 20% or bring in more clients if you want to grow.
My goal is to grow my assets under management back to $100,000,000. I would like my new clients to average over $1,000,000. Therefore I need to bring in at least 30 new clients in the next two years.
Here are some numbers from my business analysis:
Top Ten clients generate $137,000 in commissions in 2009.
The top ten generate 43% of my income for the year.
I have 146 total households under management.
In theory, if I clone my top ten clients then I could increase my production by 43% next year.
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