Hey, Rob Brown of Encore Partners here.
Have you heard there’s this new set of regulations coming out called the Department of Labor regulations?
Rumor has it they’re going to turn the business upside-down; they’re going to put you out of business if you aren’t careful.
Well, you know what?
I want to chuckle, because the advisors that I work with who have built businesses that deliver high value, and they’ve structured their clients service model and their client management process in a way that really takes care of their clients, don’t have to worry.
They aren’t thinking about lowering their prices.
They aren’t worried about whether or not they’re doing commission business (although most have 100% fee-based business).
They’re just not worried about a lot of the noise that’s out there that’s saying…
“Pricing pressures are going to drive your profitability down…
You have to be looking over your shoulder…
You have to add tons of new assets just to make what you’re making to day”.
That’s crap. I’m sorry. I am just tired of all the chatter.
I go to the websites that advisors go to that have, like, “these are the articles that have been clicked on the most this week.”
Two of the top five are almost always related to Department of Labor regulations. Enough already!
If you run your business in a way where you’re delivering a high level of value, both in terms of service and your client management process, you can raise your prices.
You can defy those regulators who don’t understand a lick about what it is you do and how important you are to the people that you work with.
So, stop worrying about the DOL standards.
Don’t worry that they’re going to come creeping into your business. Sure, it’ll be a pain in the butt.
There will probably be more paperwork. It won’t be easy even for the advisor who avoids it the most.
But the reality is, DOL doesn’t matter if you’re delivering a client experience and a client management process that sets you apart from the crowd.
Is your business defensible through those standards?
If it is, no worries at all.
If it’s not, it’s time to decide how are you going to make sure that you’re delivering value, that you’re earning those fees and commissions in a way that make the regulators run from your business if they pop in for an audit.
Well, I know I’ve gone on too much.
I’m on a little bit of a soapbox, but I’m really tired of it.
Worrying about the DOL standards, being paralyzed by something that you can’t explain, and even the people who are implementing can’t explain what they’ll implement, is fruitless.
Build your business in a way that you’re proud of, the way that your clients appreciate and understand your value, and you’ll have no problems.
In fact, your business will grow faster than it ever has before.
Thanks for listening.