Uncover the five essential ways sub-reps can significantly bolster your firm's capabilities and expand your financial advisory business.
At some point, every independent practice reaches a plateau, where growth rates slow and advancing to the next level becomes increasingly challenging. If you just read that statement and thought… that resonates with me. You may be wondering what you can do to combat this challenge.
Through our extensive experience working with advisors nationwide, we’ve witnessed some remarkable success stories. The common thread? Hosting lead-generating educational seminars and strategically integrating sub-reps into their teams.
But how can you use sub-reps to scale your business? We’ve got the answers below.
The rise of sub-reps
Sub-reps are individuals who work under the supervision of a lead advisor and are often recent college graduates or experienced professionals looking to transition into a career in financial advising.
Their roles can vary but usually focus on client acquisition, lead generation and administrative support. They serve as a bridge, extending the reach and bandwidth of the primary advisors, allowing them to focus on high-value tasks while ensuring that the broader clientele receives adequate attention. White Glove Co-Founder, Jeff Grail, advises starting your hiring process locally. Bringing on team members from your immediate vicinity enables more personalized training and facilitates seamless task delegation. Consider attending local career fairs at nearby universities or community colleges to connect with aspiring financial advisors. This presents an excellent opportunity to cultivate meaningful mentorships with the next generation of financial professionals.
Let’s talk about cost-effective growth! Sub-reps are typically paid on a commission basis, which means that advisors only pay for the services that they need. For someone fresh out of college, we recommend a competitive 30-35% commission spread. This arrangement is advantageous for both you and your sub-reps, as it not only optimizes your business’s cost-effectiveness but also allows you to nurture and develop these budding professionals within your company.
Enhance client service
As you’re growing, you don’t want to lose that personal touch, right? It can be tough to keep up with your expanding client base and their increasingly complex needs. That’s where sub-reps come in. Sub-reps can help you manage a more extensive portfolio without sacrificing quality or responsiveness. It’s all about scaling up while keeping your service top-notch.
Expand your reach
With sub-reps supporting your practice, you can exponentially increase the number of educational workshops you host, offering more opportunities to attract, connect and engage with potential clients. We’ve got all the tools and resources you need to shape them into a workshop expert. Whether it’s taxes in retirement, estate planning, retirement planning or social security, your sub-reps can help expand your reach, both in-person through seminars or virtually through webinars.
Once you’ve got your local turf covered, consider expanding beyond local borders. Opening a sister or satellite office in a new area gives you a tremendous opportunity to reach new markets and attract clients who may not have been aware of your services. This geographical flexibility can be a game-changer for your firm’s growth.
Amplify your enterprise value
When it’s time to relax and retire, you must prepare for a smooth transition. Building a team of sub-reps can enhance the attractiveness of your firm to prospective buyers. This approach ensures continuity in client service and operations, which is highly valuable in the eyes of acquirers.
Hiring sub-reps is a strategic move that can significantly benefit financial advisors when it comes to scaling their firms. It’s essential to carefully select and train sub-reps to ensure they align with your firm’s values and standards, but when done right, this approach can be an excellent decision for your firm’s future growth.
Interested in more tips? Click here to tune in to a recent episode of the FAST (Financial Advisor Strategy Talks) Podcast, where Jeff Grail, Co-Founder of White Glove, dives deeper into the topic.