Building a Financial Services Business

Uncommon Wealth Podcast

In this revealing episode, we offer an inside look at how financial practices are built, how advisors get started, and the challenges they face within the industry. Their personal experiences and decisions highlight the importance of aligning business models with core values, prioritizing client relationships over profits.

The conversation covers a range of topics, from the typical pathways for new financial advisors joining larger broker-dealer firms to the differences between commission-based and trail-based revenue models. The hosts don't shy away from discussing the sometimes harsh realities of starting out in the industry and the ethical dilemmas they faced early in their careers. We passionately believe in a client-centered approach and stress the benefits of building a practice on residual income over upfront commissions.

• Phillip provides insights into how large firms structure their training and revenue models, often aligning advisors' interests with making immediate sales rather than fostering long-term client relationships.
• Arron's experiences underscore the importance of finding a firm that supports its advisors' growth without compromising client service.
• The duo emphasizes the significance of having a fee-based model that allows for transparent, unbiased advice and planning.
• Phillip and Arron share their commitment to continuous improvement, with a focus on serving clients and enhancing their offerings year after year.
• The hosts candidly reveal uncommon business practices they uphold, such as not having non-compete agreements to foster a supportive and mutually beneficial work environment.

Key Takeaways:

• Financial advisors often start their careers with larger firms, facing the challenge of selling products for immediate commissions versus building trail-based residual income.
• It's essential for financial advisors to align their payment structure with their service values, maintaining client relationships as a priority over quick profits.
• A fee-based model assists advisors in providing unbiased plans without the pressure of immediately managing assets.
• Advisors' continuous growth and improvement are critical factors in providing the best possible service to clients -- this is the unwavering mission of the podcast hosts at Uncommon Wealth Partners.
• Ethical business practices, like forgoing non-compete clauses, serve to establish long-lasting trust and collaboration within the framework of the firm.

Notable Quotes:

• "I'm never going to lose a friend over this." - Phillip discussing the ethical implications of sales tactics in the industry.
• "If I am, please fire me because that means I didn't get better." - Arron stressing the need for continuous improvement as advisors.
• "It's bananas... why is that? It's because there's a thing called compounding interest that works really well." - Phillip explaining the power of compound growth in their business.

Resources:

• Uncommon Wealth Partners website: Uncommon Wealth Partner