New Year, New You

by Mitch Anthony

The existing ROI value proposition of recommending financial products and providing financial planning and asset management are all undergoing rapid commoditization. It is becoming increasingly difficult for advisors to differentiate themselves in a crowded, "me too" marketplace or to live up to the unrealistic expectations folded into the ROI approach. Have you found yourself frustrated by constraints of the ROI value proposition?

Performance: Having to always achieve a higher rate of return than competitors or indexes.

Prognostication: Always trying to predict the future (of the markets or the economy).

Timing: Continually helping clients avoid falling asset classes instead of helping them capitalize on emerging opportunities.

The consequences of the ROI approach are manifold and erosive on your life and business. If any of the following statements describe you, you are at risk:

1. You need to constantly prove your worth.
2. You are blamed for events and forces beyond your control.
3. You are perpetually compared to competitors and indexes.
4. You are wrong in your predictions.
5. You have to cope with clients who hold back information and assets.
6. You have too many clients.
7. You do not have enough time in your day to balance personal and professional commitments.

Why would you allow your reputation to be based on the market's behavior instead of your own? Instead of chasing ROI, you need to take a step back and liberate yourself from unrealistic expectations, fickle client relationships, and comparisons with other providers. In other words, you need to move from ROI to ROL (Return on Life™).

The ROL value proposition transcends commoditization and enables you (and your clients) to profit from your wisdom, experience, and insights. By positioning yourself as an ROL advisor you will never again wonder if clients truly understand your value. The transition from ROI to ROL begins and ends with the goal of helping you create the life you have always desired while delivering transcendent value to your clients. Advisors practicing ROL are in the enviable position of being able to make promises they can keep to a manageable number of clients. The result is a trust that is magnified, a balanced life, and clients who are thrilled with the arrangement.

Using the ROL model, you can to take back control of your time and still earn the living you desire. To get started, you need to free yourself from the chains and fetters of the ROI model and offer the following ROL Val-YOU propositions to your clients:

Organization: Help to bring order to your clients' lives.

Accountability: Help your clients follow through on their commitments.

Pro-activity: Help your clients anticipate life transitions and be prepared financially.

Education: Help your clients understand what is needed (and why), and how those decisions will work.

Partnership: Help your clients achieve the best life possible with the money they have.

As an ROL advisor, you will enjoy:

• Never having to put your reputation at risk to forces beyond your control.
• Referrals that come organically, instead of from awkward requests to meet friends and associates.
• Conversations that will always profit your clients and your firm.
• Clients who will act on your advice because they understand the connection between your advice and their quality of life.

The ROL Revolution that is changing the face of the financial services industry is just getting started. Throughout 2011, I'll share the tools and techniques you'll need to join the revolution and make the transition from ROI to ROL.

Mitch Anthony is the founder and president of the Financial Life Planning Institute, the leading provider of financial life planning tools and programs. 

For more than a decade, Mitch and his team have provided training and development for both individual advisors and major organizations throughout the world. Mitch personally consults with many of the largest and most-recognizable names in the financial services industry on both financial life planning and relationship development.

Mitch has been named one of the financial services industry’s top “Movers & Shakers” for his pioneering work, and is interviewed by the media on a regular basis. The Institute is partnering with both Texas Tech University and the University of Georgia to develop financial life planning programs for their undergraduate programs. Mitch is a popular keynote speaker, columnist for Financial Advisor magazine, and host of the daily radio feature, The Daily Dose, heard on over 100 radio stations nationwide. His syndicated column, Return on Life, appears in newspapers across the country.

Mitch is also the author of many groundbreaking books for advisors and consumers including perennial best-seller StorySelling for Financial Advisors, cited by “Financial Advisor” as the number one “must-have” book for financial professionals. Mitch’s other books include From the Boiler Room to the Living Room, The New Retirementality, Your Clients for Life, and Your Client’s Story, The Cash in the Hat, and his newest book, The Bean is not Green. For information on these books and more resources, click here.

© 2011 Mitch Anthony