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EVERY ADVISOR I meet has a process for how they
deliver their unique services and value to plan sponsors
and plan participants. However, only a small fraction
of 401(k) advisors have a clearly defined, articulated
and packaged that process, which they can deliver on a
repeatable basis without having to reinvent the wheel
every time they deliver their goods.
Benefits of a clearly defined process
First, by process I mean a series of action steps and
deliverables you provide on a regular basis to plan
sponsors and plan participants. There are two distinct
benefits to having a clearly defined and packaged
process.
1. Charging For Your Value.
The majority of advisors in the 401(k) marketplace give
away their value for free in the hopes of selling or
capturing the retirement plan assets. This becomes what
I call a “front-end loaded system”. The advisor gives
away all of his best ideas and intellectual capital for
free over a series of first, second, and third meetings,
hoping to gain access to the final presentation and win
the assets. By articulating your process and value into
clearly defined steps, you can demonstrate to both the
plan sponsor and plan participant the depth of your
value and services. People want value and will pay
handsomely for it, provided they can see it and
understand it clearly.
2. Systematizing Your Value.
An even greater benefit of articulating your value and
services into a clearly defined process with steps is
the ability to create a repeatable system that your
staff can learn (train), deliver (execute), and develop
(enhance). Remember when you first started in the business,
you were the visionary. You had all the ideas in your
head and only you knew what to do and when to do it.
This made it difficult for you to train your staff,
further frustrating both you and them. A process forces
you to:
1. Define Your Value.
2. Articulate Your Value.
3.
Replicate Your Value.
It allows you to train both you, your current staff and
future hires in creating a repeatable system and future
enhancements you never thought imaginable.
A clearly articulated process that is packaged
professionally allows the intelligent 401(k) advisor the
ability to:
1.
Demonstrate their value
2.
Price their value
3.
Charge for their value upfront in a consultative
fashion and lock in the engagement.
Articulating your process in clearly, articulated steps
will allow you and your back office to support your
pro-active services and create predictable futures for
your organization, plan sponsors and plan participants.
In the end, by articulating your value you will be able
to charge for it and that will increase your confidence
and success in the ever competitive and commoditized
401(k) marketplace.
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