Profitable Business Lines

Profitable Business Lines

Are You Ready To Grow As a Financial Advisor?

Profitable Business Lines for Financial Advisors

Expand your offerings, and generate new revenue streams.

Profitability and gross revenue differ significantly. When you understand this concept, you’ve taken the first step toward developing a sustainable financial advisor firm.

As you look to expand your firm’s profitability and your clients’ financial portfolios, you must determine what services best meet their needs.

What Are the Most Profitable Business Lines for Financial Advisors and Their Clients?

You can gain new clients and grow your business in tons of ways — here’s a small sample:
  • Online seminars
  • Live events
  • Social media
  • Search engine optimization (SEO)
  • Television appearances
And while this type of marketing certainly deserves your attention, it’s a slow process. What if you could acquire new clients almost instantly? One sure way to do it is to incorporate different product offerings into your existing financial services business.
 
Let’s look at three profitable business lines for financial advisors.

1. Tax Planning

Add tax planning to your existing financial planning business. It’s one of the quickest ways to generate additional revenue and new leads to your sales funnel. Meanwhile, you increase the natural profitability of your clients’ financial portfolios.
 
Did you know that 92% of wealthy investors expect their wealth manager to provide tax planning advice, but only 25% actually receive that service? That means many tax experts aren’t doing everything they can to help clients plan for the future. This leaves the door wide open for you to make a strategic move in both your clients’ and your business’s best interests.
 
However, developing a tax practice from the ground up can be daunting for even the most seasoned professional. Another option is to co-market clients from an existing business until you get more tax experience in your firm.
 
Develop a relationship with a local CPA or tax firm to borrow their clients. Nurture and develop your bond with them and their customers. Then, start to look for longer-term solutions, like buying a tax practice or building your own.
 
One way to build rapport is to create a business plan tailored to their company. Develop a presentation with accurate financials and a strategic marketing plan. That way, they know you’re serious about creating value for both the business and its customers.
 
profitable business lines for financial advisors diagram

Are You Ready To Grow As a Financial Advisor?

2. Medicare Practice

Some advisors rule out offering their clients Medicare products based on the lower compensation models versus other products. But several benefits come from adding this profitable business line to your roster.
 
Unlike other investment vehicles (like mutual funds, real estate investment trusts or hedge funds), certain customers see Medicare products as more valuable. That’s especially true as they look at their post-retirement planning.
 
By offering these services, you can create deeper relationships with your clients. You also ensure you don’t have to refer them to others who specialize in Medicare products.
 
As a benefit to you, most Medicare products have trail commissions. Although the trail’s length may limit the years of the commission, it can easily become a viable revenue stream for firms of any size.
 

3. Insurance

Negative biases may exist around the idea of a financial advisor marketing the benefits of different insurance policies. Still, the fact of the matter is that insurance policies are necessary for any serious financial plan.
 
You have many reasons why you might consider selling life insurance as part of your client service portfolio. These include the ability to better meet client needs by providing more comprehensive wealth planning services and the opportunity to earn commissions. While it can be challenging to educate clients on these products’ importance, they have value when necessary.
 
It may be easier for you to focus on stocks, mutual funds and investment strategy design. Leaving the “insurance” part behind can leave your clients vulnerable to a severe income gap during critical situations.
 

Review Different Growth Opportunities

For your clients, finding the right financial advisor is a matter of understanding what products work in their best interest. It’s important to think about what your ideal client wants and how you can service that need as you add products to your firm’s offerings. 
 

Talk to C2P About Profitable Business Lines

Book a call with us at C2P Enterprises to talk shop, get advice and more. We’re happy to help you find lucrative products to add to your offerings!

 

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