Selling is typically a big part of a financial advisor’s job – if you’re not closing deals, your business may stagnate. But what if you’re looking for a different kind of career in financial services? Can you be a financial advisor without sales? It might surprise you to learn that yes, it is possible to work as an advisor in a role that’s not exclusively focused on sales.
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How much of financial advising is selling? If you were to ask an advisor 20 years ago, they might tell you that it’s all about sales. You join an advisory firm, you get a quota and you work to hit it month after month.
Today, the advisory services landscape is different. There’s still an incentive to sell and develop your business, but there’s a stronger emphasis on the service aspect of advisory roles. Clients are not content to just be a number in your book of business; they want tailored advice that enables them to reach their goals, whatever those might be.
And that’s changing the way advisors do business. Some advisors find themselves pivoting away from sales entirely because they don’t find it fulfilling. Others are looking for another way to share their expertise that doesn’t come with the pressures of the sales track.
If you’re just getting started in financial services or you’re an experienced advisor who’s ready to navigate a slightly different career path, it’s helpful to understand where the non-sales job opportunities lie.
Many financial advisors rely on a support team, which may include one or more paraplanners or client service associates. Either role might be a good fit if you’re looking for an entry-level financial services job that doesn’t require sales.
The typical range of duties for a paraplanner or client services associate often includes:
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Handling client inquiries
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Organizing and maintaining client records
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Drafting reports
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Conducting investment research and analysis
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Constructing financial plans
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Taking notes at client meetings
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Handling back-office administrative tasks, such as scheduling or reviewing documentation for compliance requirements
And you get the benefit of being able to help clients without feeling the pressure to sell.
Buying a book of business from an advisor who’s set to retire or transition out of financial services is another path that may allow you to help clients without selling. This assumes that you gain a list of clients who are firmly established in their financial plans and primarily need you to monitor and course-correct when necessary.
Your success, of course, depends on how many of those clients you’re able to maintain. There may be clients who are comfortable transitioning from their old advisor to a new one, but some departures are to be expected.
Research can help you find the right book of business to buy. If you find a suitable candidate, consider the advisor’s business model and financials, including cash flow, revenue and liabilities. Look at why they want to sell and the estimated valuation, and weigh your options for financing the purchase.
If you’re ready to break away from your current firm, maybe it’s time to consider going independent. Becoming a registered independent advisor (RIA) doesn’t necessarily eliminate the need to sell, but it shifts the focus toward serving instead.
As an independent RIA, you can determine what type of clients you want to work with, how you prefer to structure your fees and the services you’d like to offer. You have room to get to know your clients and cultivate lasting relationships. That can help you bridge the gap to the next generation if your clients have children or grandchildren who may someday need financial advice.
Going independent does have some drawbacks, as responsibility for your success rests entirely on your shoulders. There’s also a financial component, and you’ll have to decide how you’re going to finance your new venture.
If you’re not ready to go it alone completely, you might consider joining forces with an RIA aggregator. RIA aggregators provide you with the tools and infrastructure you need to grow your business while allowing you to operate under an established firm’s name.
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A common reason advisors leave the industry is because they fall out of love with what they do. That can happen if you constantly feel pressured to sell or you hate the nature of sales.
So what do you do if you find yourself in this situation? Before you quit altogether, ask yourself the following questions:
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What aspects of selling are most problematic?
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How would you feel if you didn’t have to focus so much of your energy on sales?
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Is there a way that you pull back on selling in your current role?
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Would you consider shifting roles to do less selling, while remaining in the financial services space?
Pivoting away from sales could make being an advisor more enjoyable again if you’re doing work that actually matters to you. Exploring non-sales financial services jobs and what they entail can help you weigh your options if you’re ready to make a change.
The answer depends on who you ask; some advisors might say that sales are central to the job while others would argue that it’s relationships that matter most. While many financial advisor jobs are largely centered on sales, it’s possible to find positions that emphasize relationships first and revenues second.
Advising means working with clients to develop financial plans that reflect their needs, goals and risk tolerance. Selling is all about getting clients to buy the products you recommend. The former is relationship-focused while the latter is financially motivated.
Financial advisors quit for different reasons, including poor work/life balance, constant pressure to sell and low levels of job satisfaction. Finding success as an advisor means shaping a path that allows you to enjoy what you do while creating a profitable business.
Being a financial advisor without sales is possible, but it does require some outside-the-box thinking. The options listed here are just some of the ways you might create an alternative path to success in the advisory industry.
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How much of your day do you spend on marketing? It’s an essential task for growing your business, but one that can take up considerable time. Partnering with an advisor marketing platform can offer a simpler path to lead generation. SmartAsset AMP takes a holistic approach to helping advisors grow their businesses, one that could save you valuable time out of your day. Schedule a demo to learn how it works.
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What credentials do you need to be a financial advisor? It depends largely on the type of clients you plan to serve and the services you’d like to offer. If you’re interested in financial planning, for instance, you might consider becoming a
Certified Financial Planner (CFP®)
™ . If you’re focused on investment advice, then you’ll need to know which securities licenses are required.
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