A recent study from consulting group Sanctuary Wealth Services makes some tough but useful conclusions about what wirehouses do better than independent firms.
On the surface, the white paper on "What Can Independents and Wirehouse Brokers Learn from Each Other?" seems a little unfairly dedicated to balance.
If investors -- and advisors -- are fleeing the wirehouse channel in droves, then simply pointing out that the wirehouses are still bigger and better at marketing themselves begs some serious questions.
So what, if the bulge bracket banks have more resources to throw at capturing clients and talent? If maybe 10% to 20% of those new clients will rotate away from the firm every year or so, isn't this just a case of throwing money at the problem to slow the pain?
But digging in reveals some true insights. For example, the wirehouses know how to sell themselves, even if retention isn't flawless once those new clients sign up.
Independent advisors who see prospecting as "something unseemly," to quote the report, could learn from their sales-oriented counterparts.
And with referrals reportedly drying up, selling may be crucial. The report quotes an earlier study that found that the fastest growing advisors out there spend 40% of their time tracking down new leads.