ADVERTORIAL

By David Scranton Founder and CEO , Sound Income Group

Then I realized that success doesn ’ t mean following the same path as everyone else . By adopting an investment specialization , changing my business development mindset and learning how to delegate , I was able to turbocharge my business and generate $ 3 million in revenue within a decade .

By looking at things differently , I was able to engineer a better outcome . It ’ s a philosophy that I ’ ve shared with hundreds of other advisors who have also gone on to grow their business . It helped me create Sound Income Strategies , Retirement Income Source ® and Sound Income Academy . Here are three key lessons that helped me achieve growth :

1 . Ignoring the 4 % withdrawal rule . There is a popularly accepted belief that withdrawing 4 % of principal during retirement is appropriate . I think that amount can be risky . Why ? For starters , that number is always changing . At one point , Morningstar suggested that 2.7 % should be the acceptable amount , especially in a low-interest environment . Now we ’ re hearing 5 % as the recommended amount .

How about zero ? I have found you don ’ t have to touch any principal during retirement if your portfolio is structured to provide enough income . The answer to an income-generating portfolio can come via separately managed accounts built with individual bonds , preferred securities , real estate investment trusts , business development companies and dividend-yielding stocks .

Pivoting to an income specialist investment approach boosted my business by 10X .

2 . Attract , don ’ t chase , new business . I vividly remember knocking on office doors at industrial parks to gain new clients . It was a tough way to develop leads , and for many firms , cold calling was the only way .

I know better now . Chasing clients expends a lot of resources . Attracting clients is a more effective approach .

Meet AIDA , the marketing strategy of Attention , Interest , Desire , and Action . It ’ s a four-step process that must be executed chronologically , or it won ’ t work . You start by getting a client ’ s attention with a unique value proposition — say an income-generating investment strategy — then leveraging your brand and reputation ( interest ) to guide them to the decision phase of meeting with you . The final action stage is converting the potential client into a client .

3 . A team is key to achieving growth . I remember the day I realized that to earn $ 1,000 an hour , or $ 2 million a year , I had to hire a team . Sure , I could attract many new clients , but every meeting meant additional hours researching investments , filing paperwork , making follow-up appointments , etc .

By adopting an investment specialization , changing my business development mindset and learning how to delegate , I was able to turbocharge my business and generate $ 3 million in revenue within a decade .

— David Scranton

Relief came via a four-person support team with very specific roles . I call this solution the “$ 50-million team ” because it is instrumental for financial advisors to gather 50 million of new assets year after year . It can ’ t be implemented overnight because it takes time to identify the right person and money to support their salaries , but it can be done .

These aren ’ t the only key steps to becoming a successful wealth manager , but they were among those that helped me break through the $ 1,000,000 barrier and build the firm that I have today .

DAVID SCRANTON is founder of Sound Income Group , a Fort Lauderdale , Florida-based diversified financial services company , whose affiliate , Sound Income Strategies , is an SEC-registered RIA with over $ 3 billion of total assets under management . He is also the author of several books , including “ Attract & Grow : The Financial Advisor ’ s Blueprint for Attracting $ 50 Million in Annual Assets ” set for an upcoming winter release . Learn more at www . soundincomegroup . com .

Investment Advisory Services offered through Sound Income Strategies , LLC , an SEC Registered Investment Advisory Firm .

The information provided herein is for training or educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities , investments , investment strategies or investment advice relating to securities , nor is the information a representation that any security is a suitable or appropriate investment for any person . Before acting on any advice , you should consider the appropriateness of the advice having regard to your own objectives , financial situation and needs . Where quoted , past performance is not indicative of future performance .

NOVEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 29