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Written by: Becca Hajjar | Commonwealth
For 18 years, I’ve consulted with advisors contemplating independence or seeking a better fit in their RIA or broker/dealer partner. And I have never seen money blind advisors’ decision-making more than in today’s competitive environment.
Most are working diligently to determine what’s best for their practices and clients. But sometimes, they can’t see the forest for the trees—where the “trees” are the upfront transition assistance to advisors, and the “forest” is more money in their pocket year over year and achieving a higher business valuation in the future.
We play to win at Commonwealth, and we’re competitive in what we offer advisors. Our mindset, though, is longer-term. We want to deliver value year after year, helping advisors translate their service to clients into business success and maximize terminal value. As a measure of validation, our affiliates’ gross revenue per advisor has been consistently among the highest in the industry.
An Entrepreneurial Mindset
Transition assistance to help advisors align with a new partner firm certainly has its place. At Commonwealth, we take a very competitive stance and see it as a symbol of a long-term fit. We’re committed to meeting the needs of an independent firm as it seeks to take full advantage of our capabilities.
Our approach is extremely consultative we focus on uncovering what advisors need to build their businesses:
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We ask, “What are you looking to solve, and how can we help you solve it? How do we give you more time back in your day and create efficiencies?”
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We talk about advisors’ vision for the future—and where their entrepreneurial mindset will take them.
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We share what we’ve been learning from Commonwealth affiliates—the most productive in the industry.
When advisors’ due diligence advances and turns to home office visits, advisors walk down the hallways and feel the energy—they see people who enjoy being here and are passionate about being indispensable to their colleagues and the advisors they serve. I thoroughly enjoy watching the advisors’ “aha moments” as engage with the team and discuss their dreams coming to life.
Growth and Community
As we recruit, we interview prospective advisors just as much as they interview us. If our values and culture don’t align, we protect our community and move on. We aren’t the right fit for everybody, but the cohesiveness of our community that’s based on an investor-centric mindset is a foundational value for us.
Recently, I was talking with a longtime Commonwealth advisor at a company event. She said, “Becca, I love all the newer advisors I’ve met.” Everything else flew out of my mind, and I asked her, “Why?” She said, “Because they’re just like us: client-centric.”
Our advisors focus on taking the best care of their clients and not just their bottom lines. I believe that’s what makes a community great, both at the advisor and home office levels. Technology, training, coaching, in-house experts, external partners—all these aspects are essential. At Commonwealth, we are investing more heavily than ever in support of meaningful growth for us and our advisor community.
Entrepreneurially minded advisors ask how our investments in tools and resources can improve things for everyone, not just themselves. They know they won’t be new for long and want to ensure we’re helping them grow through day-to-day support, outsourcing options, and potential access to capital.
A Long-Term Focus
As advocates for advisors, it always hurts to hear someone say “I took the money, now I’m stuck, and nothing has changed for the better. This is why we always emphasize the importance of a true due-diligence process to evaluate the choice in whole.
At the other end of the spectrum are advisors who have told me, “Commonwealth has changed my life.” There’s nothing more satisfying than hearing that for someone in my role.
After 24 years at Commonwealth, I offer advisors an earnest suggestion: take a long-term view. Find a partner who helps you excel at your core strengths and add new ones. The partner you choose will determine your business success, as well as your personal satisfaction and exceptional client service.
From my thousands of conversations with advisors over the years, I know a strong partnership gives them confidence about the future. I believe it’s also enabled Commonwealth to rank #1 in Independent Advisor Satisfaction among Investment Firms for the 11th year in a row according to J.D. Power.
Related: Why Active Management Matters in Hedged Equity Strategies
*As of 9/22, based on self-reported AUM data from 47 participating firms in the 2022 Financial-Planning.com IBD Elite survey.