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The 10x Formula to Grow Your 401(k) Business

Seasoned advisors looking to grow their 401(k) business tenfold without having to do 10 times as much work have all they need to succeed. The answer is new advisors looking for better leads and a way to jumpstart their career.

But how can they find one another? That’s the trick. But before we get to that, let’s look at some facts:


» More than $8 trillion exists in 401(k) retirement assets.


» The majority of 401(k) plan participants lack financial literacy and do not have the resources for a secure retirement.


» More than 10 million working Americans are taking their Social Security benefits already, and they urgently need financial guidance as they near their retirement years.


In every dollar of retirement revenue an advisor generates from the 401(k) assets they manage, there is 10 times that amount of revenue available to be generated from ancillary business opportunities. These ancillary business opportunities include group benefits; life insurance and disability, including key person insurance; deferred compensation arrangements; long-term care insurance; and individual financial planning services to owners, executives and every employee. Don’t forget the ability to capture rollovers from retirement assets outside the plan from old 401(k)s or individual retirement accounts.

Since 2002, I have coached more than 2,500 advisors, both new to and experienced to the industry. Many of the young and energetic ones are struggling to find qualified leads to work with or are wasting money on the wrong “magic” systems.

Then there are the advisors with a strong book of 401(k) business. This type of advisor is very experienced and successful in managing the assets of the plan but does not necessarily have the time or tenacity to work all the ancillary opportunities. Some of these advisors focus on financial and estate planning, but it is primarily geared toward business owners and their key employees.

The largest potential client base, the “rank and file” employees, is not being serviced at all. The funny thing is that both types of advisors are looking for ways to take their practices to the next level.

I started out in the life insurance business back in 1979 and, over the years, I grew to have enormous enthusiasm for the retirement industry. One of my early differentiators as a 401(k) advisor was to focus on successful retirement plan outcomes for both plan sponsors and plan participants.

I find it absolutely vital to offer educational meetings for all my 401(k) plans. As a by-product, relationships were built and many employees started coming to me for other financial planning advice.

I soon developed a repeatable system for setting up one-on-one meetings and, over the years, built a significant stream of additional revenue. This was great for me while I was still building my practice from the ground up. But it got to a point when I could no longer continue to scale the front part of my business and keep up with all the subsidiary business demands that helped shape my success, satisfaction and significance.

So I am able to share with you this secret to success not only because I have experienced it myself in my practice, but because I see the same predicament across the country with advisors in my coaching programs.

If you are a new advisor trying to plant the seeds for a successful financial planning future and are frustrated by the lack of results, your solution is to partner with a seasoned 401(k) advisor. Present them with the opportunity to grow their business faster, easier, cheaper and bigger, with you as the solution.

When I was able to reach a certain level of production in my practice, I partnered with another local advisor who was passionate about retirement education and qualified to discuss financial planning and products. I knew that education was important to the success of the plans I managed, and I knew there was a demand for additional needs from all demographics.

Over the years, I have had several advisors work on my team to provide additional value to my book of business, and together we garnish the additional returns. This has allowed me to keep my primary focus on selling more 401(k) plans and follow other business opportunities while still providing the benefits of employee education and one-on-one support for employees. The ancillary business benefits both me and the junior advisor, and the value of the financial assistance to the employees is unquestionable. It’s a win-win-win!


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