The primary role of some mentors (e.g., Smith) is to simply convince the new advisor he or she can succeed. Other mentors play a longer-term role. After hearing speaker Ronald Bushwell, a top MDRT producer, Bradley Bofford of Financial Principles LLC in Fairfield, N.J., knew he had to follow in Bushwell's steps. "Early on, he imparted his insight on the business of working with clients. He stressed some of the basics we often forget, like promising a lot and delivering even more, and working with enthusiasm."
Bofford recalls one particularly-insightful Bushwell recommendation: "He said to me, 'When you feel you may be in a slump, instead of tightening your belt, go out and buy something, like a new TV or an Italian suit-treat yourself! It will force you to get motivated.' I had complete faith in everything Ron was telling me so, within one week and at age 22, I went out and bought a brand new, $35,000 Acura TL. When I drove up to his office, his jaw dropped, followed shortly by a huge belly laugh. He said he was proud of my actions, but didn't think I would take it to such an extreme. Needless to say, the lesson was learned; I persevered and began to succeed at an even faster pace."
Mentoring comes in many forms. Mike Dubis of Michael A. Dubis Financial Planning, LLC in Madison, Wis., partly attributes his success to forming his first advisory board consisting of an attorney, another business owner and three other advisors with whom he met quarterly.
Dubis still benefits from an advisory board, but the members change, as needed. "Today, my board consists of colleagues who want to share time because I have a contribution to make." Dubis credits his advisory boards with helping him surpass his first-year revenues of $30,000. "In just my second year, I made as much revenue as I was making in salary at the commercial real estate firm I'd last worked at.
And by the third full year, I was making 'real' money." Dubis happily reports that his current income is more than he needs.
Janet Briaud, in business more than 20 years as head of Briaud Financial Planning Inc. in Bryan, Texas, started in late 1986 and was one of Dubis' mentors. She says, "My husband drew an exponential curve showing when I'd make $100,000 in gross revenues and he was pretty close. It occurred in 1992, or after six years in business."
Now, 15 years later, Briaud has an exemplary firm and plenty of income. But does she believe new planners are reaching these goals more quickly? "Yes, but not just because they can get help from others. Planners today are coached to charge higher fees and hire support staff sooner than I did-things I didn't have the courage to do."
Joining An Existing Firm
Jennifer Cray, with Investor's Capital Management LLC in Menlo Park, Calif., says, "I started as a fee-only financial planner and investment manager in October 2004. My practice is now so busy that I've had to temporarily stop taking new clients."
Cray accomplished this by joining an existing firm (another form of mentoring). "Advisor Julie Schatz joined Rich Chambers at Investor's Capital Management in 2002 and I joined them soon thereafter." Chambers has not only mentored both Cray and Schatz, but also arranged for them to build their own practices in the midst of his own. "We split revenue with Rich as follows: it's 60%/40% if we brought the client in ourselves, and the reverse if he gave the client or prospect to us. This helped us build our practices quickly, as he had an overflow of prospects at the time."
After three years on the job, Cray says, "I hit my 2007 year-end goals of $85,000 net income and $20 million under management, working 45-50 hours a week with five-plus weeks of vacation. My [ultimate] goal is to net $150,000 working 32 hours a week by the end of 2009."