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

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

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

Paths to Profitability: Recruiting and Retention What are top Broker-Dealers selling?

Paths to Profitability: Recruiting and Retention What are top Broker-Dealers selling?

Paths to Profitability: Boosting Productivity of Reps “Solo advisors have the same earning potential as those in ensembles: it’s 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

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

Paths to Profitability: Increase Non-commissionable Revenue Non-commissionable Revenue Sources as Proportion of Sales Source: Moss Adams/FPA BD Performance Study

Paths to Profitability: Increase Non-commissionable Revenue “You're most productive when you're doing what you do best and outsource the rest.” Buy versus Build -- Financial planners find additional help outside, Joel Bruckenstein, Wall Street Journal Online, May 24, 05

The Role of Outsourcing Chances are, you are already outsourcing

The Role of Outsourcing Leverage economies of scale Clearing Albridge Why outsource?

Add capabilities without fixed overhead software money management financial planning support The Role of Outsourcing Why outsource?

Applying Outsourcing What can be outsourced? Marketing Materials Web sites Lead generation programs Software Expert Consulting Financial Planning Succession Planning Compliance Consulting

Applying Outsourcing What do your target reps want or need? Your firm’s niche Polling Advisory Board Industry Surveys

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?

Applying Outsourcing Treat the service as one of your own Manage the connections Access through your website Employee training Promotion Inclusion in standard company materials Campaigns Keys to a Successful Program

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!

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