What's Your Sizzle?

It seems like every day that we hear about another Advisor breaking away from a Big Firm and opening up his or her own shop. It also seems like every day that my firm gets approached by an existing small firm that is looking for recruiting help to bring in some of these so-called “breakaway brokers.” Some of these RIA's or smaller Broker/Dealers have been around for quite a few years. They are successfully using the wirehouse woes to attract new clients. Unchained by bureaucracies, they are attracting new assets by marketing themselves as different from the big boys. They are capturing former clients of Big Firms who are tired of Big Firm fees, who are tired of reading about how their Big Firm almost brought down our country's economy, who are tired of Big Firm “one size fits all” policies. But are they able to attract the Big Firm Advisor (BFA)? BFAs want to have other options. However, smaller firms too often default to the “we're nice guys” sales pitch. We've all heard that one, right? And that's what I hear from these smaller firms when they call me: “Danny, we have a nice group of guys here. We treat our people well. Our payout is great.” “Are your capabilities as good as the Big Firms? BFAs want to know that they can make a compelling argument that your firm is as good if not better for their clients than their old firm.” “We think so….” “And how are you going to attract the BFA? Anybody you want is already making decent money.” “Well, they are unhappy where they are, right?” “True, but they will not leave unless you have your story thought through on why your shop is better than where they are now.” “We're nice guys who will care about them once they're here….” And so it goes. They think that they can attract BFAs just because their firm is small and because BFAs are unhappy. They cannot articulate their Sizzle. Next column: The Three Crucial Elements of Sizzle that BFA's NEED to see in order to make a move from a Big Firm to a Small Firm.