Years ago I started an online real estate brokerage which I grew to the 2nd most visited real estate website in the Philadelphia market. The reason I mention this to you is that the concept of being a Fiduciary has been around for many years in other industries. It certainly was in real estate. I recall taking my real estate licensing courses trying to figure out what this fiduciary thing was all about. The instructors made a big deal about it and talked about how you had a responsibility to the client, they were in your care. In all honesty, I thought it was pretty obvious. Maybe that just came from going to church every Sunday or my parents raising me the way they did?
So now back to the recent changes happening in the financial services industry. While many people don’t like change…welcome to planet earth. Regardless of whether or not the new DOJ stuff goes forward or Trump puts an end to it. Being a fiduciary put you at an advantage in the market.
Whether you are a fiduciary or are not, you should operate like one. Here is how you can use this as a competitive advantage.
Oh, this is only for advisors that actually want to help their clients not just profit off of them.
1 – Being a Fiduciary is the Alpha position in the mind of the consumer.
If trust is a premium in this business, and it is, being a Fiduciary and discussing what that means to your clients and future clients puts you at an advantage.
2 – Practice The Strategy Of Preeminence
Being a Fiduciary means authentically you will leverage perhaps one of the most powerful timeless business strategies available to you. The strategy of Preeminence which simply stated is this: “The ability to put your client’s needs always ahead of your own.” This is from a book By Jay Abraham – Getting Everything You Can Out Of All You Got”. How this translates to you is if you treat your clients and potential clients as people that are “in your care” and that you will do right by them regardless of the financial implications then you will be on your way to having “raving fans” of your practice.
3 – Don’t Fear The Change
Most Advisors fear the impact of this change in their businesses. Don’t be one of them, take the hill, the high ground in the industry. Make treating your clients and non-clients as people in your care. Your bank account and your clients will thank you for it. Your competitors will still be trying to figure it out.
The DOJ is not the enemy here, neither are the clients not yet in your care. There are lots of bad practitioners out there…Don’t be one of them.