What’s Your Sizzle? (Part 2)

You’re the head of recruiting for a smaller Broker/Dealer, perhaps an RIA, and you want to attract Big Firm Advisors (BFAs) to your firm. Unfortunately, you think that these Advisors are so miserable where they are, that they will jump to your shop because of your nice smile. You perhaps also mistakenly believe that they have no other choices. If you’re recruiting the right Advisor, they do have choices. Maybe that choice is a competing Broker/Dealer who is better at The Sizzle than you are.
You must convince the BFA that your firm’s capabilities are at least as good as what they are leaving behind
Big Firm Management, as well as BFAs, assumes that if you’re not at a wirehouse, then you’re Mickey Mouse. Don’t make the mistake of selling merely how much better your place will be for the Advisor; your firm has to at least as good for the BFA’s clients. The BFA has to be able to demonstrate to his or her clients that this move is for the client’s benefit and not just for the benefit of the BFA. Since they cannot solicit their clients until after they have left their former firm, since your firm will be less of a brand name than your firm, then your evidence of competence must be complete and unequivocal.
You must convince the BFA that you have mastered the logistics of a transition from a wirehouse to your smaller firm
Do you know what the Recruiting Protocol is? Are you prepared to deal with the massive paperwork requirements of a transfer from a wirehouse to your small firm? If you are not prepared with specific steps, and overwhelming confidence, to make this transition a successful one for your newly hired former BFA, then just stay away. A poorly executed transition may cost you some time and money, but it also can destroy an Advisor’s career.
What’s Your SIZZLE????
What is special about your firm that differentiates you in the marketplace? A wirehouse to wirehouse move comes with an obscene amount of up front money. BFAs know that smaller BDs do not have that type of capital to spend (invest? waste?). But, there has to be something that represents your skin in the game, something that represents a risk similar to the risk that Advisor is taking by moving to your firm. More important is the amount of money that the Advisor can make going forward. How will you help the BFA to grow his or her practice? Master this and the up front money problem will go away.
You must have some way to articulate what makes your practice special. It’s simply not enough to be “a nice group of people.” Happy Recruiting!