Fledgling professionals on the headwinds they face and how they deal with them head-on
Becoming a successful advisor is extremely challenging, especially for new advisors breaking into the industry. There are a host of challenges including: competing with and incorporating technology, building a book and marketing themselves. Yet these can be overcome, if advisors are willing to tackle them.
“Younger advisors face a myriad of challenges,” says Brandon Yanchus, a 29-year-old financial consultant with IG Wealth Management in Guelph. “Our industry is facing massive disruption through technology, but I believe that younger advisors are better suited to integrate technology.”
Yanchus, who earned his CFP and RRC certifications in 2019, also points to the failure rate new advisors face but says they can’t take rejection personally. “This is a very hard industry, there is no getting around the failure rate, which is close to 90% for advisors in their first four years. You cannot take rejection personally; you will get a lot of people who simply aren’t interested. It’s not you they’re rejecting, so move on to someone who values your time and expertise.”
Those challenges are echoed by Montreal-based, Manulife, wealth management advisor Markus Boudreau, who just began his sixth year in the industry. He says challenges are even greater for advisors entering the independent side. “To be truly independent you need to work only based on your own production, that means no pay unless you produce. This is extremely challenging for young people who have lifestyles that require constant influx of income and refuse to lower their lifestyle, albeit temporarily, in order to start in this business.”
That is what Boudreau did, combined it with hard work, dedication and not giving himself a choice but to succeed. “Not having a base salary, starting as a new independent advisor, I would often make 2,500-3,000 calls per week in order to grow my business,” explains Boudreau. “I made nearly no money in my first full year.”
“I literally started from scratch, no warm market or much knowledge of the industry,” added Yanchus. “A lot of advisors take over family books or have a connection, I didn’t have any of that. I knew that if I was to be successful, I needed to attract the type of client that would grow with me, long term, as well as centres of influence that could introduce me to others.”
Both Yanchus and Boudreau also believe surrounding themselves with mentors is important. “If someone was already successful, I would just ask what they were doing, and do that. Why try and re-create the wheel when success leaves clues?” added Yanchus.
Yanchus also saw the value of making connections in his community through client appreciation events, education seminars and other networking events.
Both advisors have realized the impact that those initiatives can have. They seem to be resonating well for them, as seen in their growth. As of January 1st, 2020, Yanchus serves 187 clients and manages over $41 million in assets. As for Boudreau, he now manages close to $100 million (including jointly managed accounts) with a client base of more than 200 households.
