Up to 90% of financial advisors fail in 2.5 to 3 years in the business.
This number is so high because the industry is full of people who are just trying to make a quick buck and are not in it for the long haul.
If you want to be a successful financial advisor, you need to have a plan and stick to it.
You also need to be willing to work hard and continue learning.
Only by doing these things will you be able to survive in this industry and eventually thrive.
Why financial advisors fail
There are many reasons financial advisors don’t last, but there are a few common themes.
Poor sales skills
The financial industry is built on trust.
Too often, advisors try to jump into a sale without first building trust with their clients.
This is a surefire way to fail.
Tactics like spamming people’s LinkedIn DMs with cold outreach are no longer a viable strategy.
If you want to be successful, you need to focus on building relationships and providing value first.
Lack of focus
Another common reason financial advisors fail is that they lack focus.
They try to do too many things at once and end up spreading themselves too thin.
This leads to them not being able to put their all into any one thing and ultimately results in failure.
There are too many variables involved for you to try to focus on everything.
Decide what things will get you clients as fast as possible, and only focus on those consistently.
Once you get to a place where you’re comfortable, then you can start branching out.
Not willing to adapt
The financial world is constantly changing.
The way you invest, what clients expect, and the products available are all in a state of flux.
If you’re not willing to adapt, you will quickly become obsolete.
To be successful, you need to be flexible and always be learning.
Not having a niche
You need to have a strong understanding of the people you’re trying to help.
If you’re not clear on who your target market is, you will have a hard time finding and serving them.
Pick a niche and stick to it.
This will make it much easier to build a successful practice.
You want to focus on being known for something, and it will be hard to build that reputation if you’re constantly changing your specialty.
These are all things that can be addressed with proper training and mentorship.
If you want to be successful as a financial advisor, make sure you find someone who can help you improve in these areas.
Additional articles on this topic
How Do Financial Advisors Get Clients
Where do financial advisors find prospects?
How many clients do financial advisors need?
Are financial advisors in high demand?