Second Mover

 

Two of the most valuable companies in the world are Apple and Amazon - neither created a new product. They did create a cheaper way to deliver what consumers want. We can learn from both on how we can improve our established wealth advisory business.  My advice is as usual is organized in three sections. Each has been around for thousands of years, but we all know that we can do better.  We will start with how we gain information. Give a shout-out to our parents and other mentors and end with what we need to do now. What would Apple and Amazon do?

Town Square 

For years we have gathered in the town square to listen to the ideas of others.  Now the internet and social media platforms are where we congregate.  While enjoyable we still need to fact check the opinions.  Apple and Amazon take different approaches.  Amazon allows their users to rate items they buy on the site.  Apple demands confidentiality and then allows the educated press the opportunity to evaluate the new products.  The lessons learned is that neither approach is perfect.  Wealth Managers are learning that referrals are not the end all growth driver they have always been.  Apple’s short customer surveys after your purchase might be a good idea  

Experienced Mentors 

People who have experienced your entrepreneurial path are confidants we should question and accept their answers.  Apple and Amazon management has an open mind and both read insatiably.  The other lesson we can learn is the recurring fee schedule both firms adopt.  Amazon Prime has become a service most believe they couldn’t survive without.  Apple’s Apple Care works and the jury is still out on Apple Music and Fitness.  We need to find a fee model that works for our clients.  AUM fees seem to be a concern for many. A membership fee is worth considering.  

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Our Morning Routine 

Time is our most valuable asset. Apple and Amazon want us to spend our time on their website.  Amazon’s is basic and Apple’s is beautiful. Some wealth management firms take the Amazon approach and others have beautiful graphics. The Amazon website allows them to provide low prices.  Apple’s prices are premium. What message are we trying to send from our website?  Unfortunately, many of our websites look the same. 

Our second move should be to update our fee schedule and website. Look at your competitors website and improve their message. Apple and Amazon would.