You’ve worked hard to build your financial practice, including finding a broker-dealer to help grow your client base. As a result, you can continue providing financial advice to your clients while your broker-dealer focuses on buying and selling securities, front- and back-office support services, and technology.
As a financial advisor, there are certain differences in what you and your broker-dealer partner bring to the table for clients. But don’t let that keep you from building a relationship — your chances of reaching your goals for your clients and your business improve if you can forge a good relationship with your broker-dealer.
A 2022 Gallup study showed that having a best friend at work is essential to social and emotional support and is tied to better business outcomes. You don’t necessarily need to become best friends with your broker-dealer partner, but your clients and business will benefit from your willingness to strengthen your relationship.
Here are five secrets to developing a successful relationship with your broker-dealer partner:
1. Communicate, Meet, and Interact With Your Broker-Dealer
As someone who provides financial advice, you know communication is critical to success with your clients. That holds true in your relationship with your broker-dealer, too.
Talking to each other regularly through wins and challenges, meeting in person or on video calls, and collaborating on goals and strategies will keep you on the same page regarding your expectations and goals.
Being open and transparent with one another can help you build the trust and respect needed to speak your mind and work with clients in your preferred manner. Clear and concise communication will increase the understanding between you, helping your business run more efficiently and to better effect.
While you might not become best friends, inviting each other to events sponsored by fellow advisors or brokers will help broaden the relationship. As a bonus, these networking opportunities will help you keep up with industry changes.
Your focus is always on your client, and the relationship you build can ensure that your broker-dealer also knows the client is central to your business.
2. Stay Compliant With Regulations
Building and maintaining a strong relationship with your broker-dealer partner can help your business stay in compliance with regulations. When you have a high level of mutual trust, you’ll be more likely to share information about policy, regulatory, and rule changes.
Taking steps to ensure that you and your broker-dealer are always in compliance and avoid potential legal issues will also help create more trust among your clients, which may lead to more business opportunities.
3. Take Advantage of Broker-Dealer Resources
A broker-dealer can connect you with many resources to help you stay abreast of the ever-changing financial industry. You can take advantage of special training on the products and services, marketing, and technology available through a broker-dealer. Staying current on the industry, technology, and regulations will help your firm create value for your clients.
4. Keep Your Focus on Your Clients
It takes time and effort to build and maintain a relationship. By making room in your schedule and putting in the energy, a relationship with your broker-dealer will give you the insights and tools to serve your clients better. Ultimately, that’s what it’s all about.
The openness, transparency, and trust developed between you and your broker-dealer will affirm that you share the same fundamental mission: to deliver the solutions and results your clients expect.
5. Sharing a Vision for the Future
You’ll see mutual benefits as you build a successful relationship with your broker-dealer. One of the most important is that you’ll have a shared vision for your clients and your business.
Through honest and open communication about goals and expectations, this vision will illuminate the road ahead, helping you understand where the company is going. You’ll begin to see the benefits of the network of ideas, industry professionals, innovation, educational materials, and technology you’ve built.
Success Is a Joint Venture
Communicating, prioritizing compliance, taking advantage of available resources, staying focused on clients, and forming a shared vision can help you establish and maintain a mutualistic relationship with your broker-dealer. If that relationship is strong enough, there’s no limit to the heights you can reach together.
