$4.95 a trade and your fees refunded if you’re not satisfied. And then the murders began. I haven’t read the fine print surrounding this pronouncement, but let’s assume there is some modicum of truth in this genre of ads. Perhaps only a morsel, but some. Conventional wisdom is the argument. You get what you pay for. But sometimes you get a little and pay a lot. Any industry come to mind? There should be.
Our world as financial professional, as paid financial professionals has become very daunting. We’re not alone but there’s little consolation in this and it changes nothing. Challenges are clear and present from several sources. From the existing framework of rules we currently work under, to the new paradigm of standards. All possibly making many of us and our business models obsolete. That’s not all. Robo platforms and passive investing all make your role seem less relevant.
Change is needed. Adding measurable and communicated value to your client relationships is critical and gives you standing. Don’t fool yourself into thinking that they don’t see the ads, or don’t know who your competitors are. Whether precise or estimated, your clients are evaluating you and the work you do for them.
This is not the first time I’ve spoken about this change that’s coming to our industry. Fallout and atrophy are a given. Only those practitioners and firms who are able to align their values and interests with those of their clients will succeed. Just as important is making sure your clients understand what you are doing to earn their business and why it’s important to their financial success. The need to be urgent has arrived. Our world of finance and investment is quickly separating the winners from the losers. Pricing to zero has commoditized certain aspects of our industry and costs are more meaningful to the consumer. Scale and size will be the result. Lacking scale (efficiency), not having a clearly defined client-centric firm philosophy, or not communicating the importance of what you and your organization does to promote client success is the short path to a place no one wants to go.
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