Building Rep Services Through Outsourcing:

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Building Rep Services Through Outsourcing
The cost effective way to boost Broker-Dealer
value
Stephen Wershing, CFP President Ensemble
Financial Services, Inc. The Leading Outsourcing
Company for Financial Planners and Advisers
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Paths to Profitability Recruiting and Retention

• What are reps looking for?

What would have kept my license at my broker
dealer was if the firm could demonstrate that
they could be my partner and improve my
profitability.
-- The Breakaway RIA Challenge, Bill Hart,
Retirement Strategies, Inc., FSI Annual
Conference, January, 2007
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Paths to Profitability Recruiting and Retention

• What are reps looking for?

Once reps hit a certain payout percentage, they
turn towards value added services that will help
them build strong businesses.
--- A synopsis of the independent rep and
independent broker dealer market, Tiburon
Strategic advisors
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Paths to Profitability Recruiting and Retention
What are top Broker-Dealers selling?
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Paths to Profitability Recruiting and Retention
What are top Broker-Dealers selling?
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Paths to Profitability Boosting Productivity of
Reps
Solo advisors have the same earning potential as
those in ensembles its just that fewer of them
actually achieve it Top solo advisors spend 50
more time on business development, and 33 less
time on operations.
-- Bob Clark, Small is Beautiful, Part
Deux, Investment Advisor, February 2007
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Paths to Profitability Recruiting and Retention

• What are reps looking for?

16 of 71 large independent broker-dealers have
at least one staff person to help reps with
marketing and practice management.
---Can Your BD Do This? Part 1, David Drucker,
Morningstar Advisor, August 17, 2005
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Paths to Profitability Increase
Non-commissionable Revenue
Non-commissionable Revenue Sources as Proportion
of Sales
Source Moss Adams/FPA BD Performance Study
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Paths to Profitability Increase
Non-commissionable Revenue
Buy versus Build
You're most productive when you're doing what
you do best and outsource the rest.
-- Financial planners find additional help
outside, Joel Bruckenstein, Wall Street Journal
Online, May 24, 05
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The Role of Outsourcing

• Chances are, you are already outsourcing

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The Role of Outsourcing
Why outsource?

• Leverage economies of scale
• Clearing
• Albridge

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The Role of Outsourcing
Why outsource?

• Add capabilities without fixed overhead
• software
• money management
• financial planning support

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Applying Outsourcing

• What can be outsourced?

• Marketing Materials
• Web sites
• Lead generation programs
• Software
• Expert Consulting
• Financial Planning
• Succession Planning
• Compliance Consulting

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Applying Outsourcing

• What do your target reps want or need?

• Your firms niche
• Polling
• Advisory Board
• Industry Surveys

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Applying Outsourcing

• Does it make more sense to build or buy?

What is the demand/projected volume? How many
consumers? Is it proven? Is it already
available somewhere else? Is it a core
competency?
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Applying Outsourcing
Keys to a Successful Program

• Treat the service as one of your own
• Manage the connections
• Access through your website
• Employee training
• Promotion
• Inclusion in standard company materials
• Campaigns

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Summary

• Inventory your reps needs
• Determine whether its your core competency
• Assess the economies
• Treat outsourced programs as in-house
• Manage the connections
• Promote the value to your reps business
• When they are successful, you are successful!

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Thank You!

• About Ensemble Financial Services

Ensemble Financial Services, Inc. is the leading
provider of outsourcing services to independent
financial planners and advisors. From clerical
assistance and back-office support through full
financial planning collaboration, Ensemble
Financial helps independent practitioners and
broker dealers grow their businesses by providing
business systems and expert services.
585-419-1010 swershing_at_ensemblefs.com