Welcome everybody! Welcome to the 389th episode of the Monetary Advisor Success Podcast!
My visitor on right this moment’s podcast is Mark Berg. Mark is the Founding father of Timothy Monetary Counsel, an RIA primarily based in Wheaton, Illinois, that’s on observe to generate roughly $5 million in annual income this yr serving 800 shopper households.
What’s distinctive about Mark, although, is how his agency has scaled from $1.8 million of income to $5 million, in solely 6 years, and has maintained a 25% revenue margin… all whereas serving purchasers by completely utilizing an hourly charge mannequin.
On this episode, we speak in-depth about how Mark created a structured course of to serve purchasers underneath the hourly mannequin, together with segmenting shopper engagements into 5 “ranges” primarily based on the complexity of their must match them with the best advisor, how Mark’s agency makes use of these ranges to supply correct quotes for what number of hours it’s going to take to fulfill a shopper’s planning wants within the first prospecting name , and why Mark thinks that correct pricing is a key to success utilizing the hourly charge mannequin, together with his agency charging both $350 or $450/hour relying on the seniority of the assigned advisor.
We additionally speak about how Mark’s agency attracts purchasers each by referrals from present purchasers and from different monetary advisors who must refer prospects who do not meet their asset minimums or whose planning wants do not match their experience, why Mark created a shopper waitlist to handle his and his employees’s capability amidst a wave of curiosity from potential purchasers (after realizing that this “wave of curiosity” might be the brand new regular that he could not simply assume was momentary and would cross), and the way Mark makes use of time-tracking software program not solely to precisely and effectively invoice purchasers, but additionally to handle his and his advisors’ capability as nicely.
And make certain to take heed to the tip, the place Mark shares how hiring a president of the agency – and selecting somebody with out a monetary planning background – helped his agency scale by permitting him to give attention to the big-picture concepts for the agency and having the president implement them, how Mark structured the agency’s worker hiring, onboarding, and coaching course of to match the distinctive improvement curves of his agency’s junior staff in an hourly mannequin the place almost everybody contributes to producing income, and why Mark compares the hourly charge mannequin to a “blue ocean” of alternative for monetary advisors, with the potential to succeed in tens of millions of potential purchasers for whom different charge fashions may not be a match, however who’re exhibiting a transparent willingness to pay a number of hundred {dollars} per hour in charges… that advisors themselves can construct and scale with.
So, whether or not you are excited by studying about scale a agency utilizing an hourly charge mannequin, section shopper engagements primarily based on the complexity of their wants, or create processes for hiring and coaching staff in a rising enterprise, then we hope you take pleasure in this episode of the Monetary Advisor Success podcast, with Mark Berg.
