The 80/20 Rule is a fixture in American business—80 percent of the profit comes from 20 percent of the clients.
For financial advisors, the 80/20 Rule is an unassailable law of physics; deny it at your own risk. Yet many advisors who grasp the intuitive reality lack a proven model of professional practice that transforms their understanding into action.
It’s not uncommon to hear advisors who have taken it on the plane, come home with a dog-eared and underlined copy. And with a new fire for moving their business forward. The Supernova Advisor brings you into the Supernova back-story and delivers you to a rich understanding of what day-to-day implementation looks like.
For the early pioneers who adopted the model, Supernova was a leap of faith that soon led to an entirely new way to work, grow and profit. This book tells their story: their challenges, their successes. It can also be the door that opens to new levels of success for your business.
A must read for financial advisors.”
- On Wall Street
Having been one of the advisors at Rob’s Merrill Lynch office, I can attest to the supernova process. The one thing that advisors should understand is that this process is also an excellent way to acquire new clients. In speaking with prospects, I explain to them how we will go about servicing them when they become a client of ours. I have had more than a few prospects (now clients) who have stated to me that it was the first time any of their advisors outlined in detail exactly what they should expect from our service model.”
I recently began working in the wealth management business for a large Wall Street firm, and sought to learn all I could about this industry. After reading Rob Knapp’s book, however, I feel that my work may be done. Everyone I go to asking for recommended reading keeps pointing me back to “The Supernova Advisor.” Knapp’s ideas are paradigm-shifting, and every firm and broker seems to be scrambling to put the Supernova model into practice. The testimonials on the back cover say it all: James Gorman and Bob Mulholland, among others, sing the book’s praises. (The former is now CEO of Morgan Stanley, and the latter is #2 at UBS Wealth Management.) Read this book if you want to know what the future of the industry will look like and what the best advisors in the business are doing.”
This book has been making it’s rounds through UBS. Initially, I thought it was another motivational book for financial advisors. However, it really galvanizes the benefits of running a highly efficient, concentrated financial planning practice.
Not only does Knapp lay out the steps to create a better financial planning practice, he provides the backing data of how it impacts practice growth and client satisfaction. If you have been a successful financial advisor for at least the past 5 years, you will be hard pressed to deny that the changes recommended in this book won’t substantially improve your client experience, your quality of life and your future success.
I highly recommend!!
- Frank Condon
From the Introduction
Some movies offer remarkably appropriate metaphors for the choices we make in our careers and lives. In “Indiana Jones and the Last Crusade,” Indy’s quest to find the Holy Grail quickly becomes more than a professional obsession; it’s a family emergency. His father is shot in the stomach by the Nazi antagonist and his only hope for survival is a drink from the grail.
The Nazi tells Indy, “It’s time to ask yourself what you believe.”
Three tests stand between Indy and the grail chamber. After passing the first two with swashbuckling flair, Indy arrives at a test of faith. To reach the chamber that houses the grail, he must first cross to the other side of a thirty-foot cavern. There is no bridge — at least no visible bridge. To step out is to literally take a leap of faith. And faith goes against everything he stands for as a rational, intellectual college professor.
In this book, you will be encouraged to take a leap of faith too. It’s a way of working that might run counter to what you’ve come to believe about your business, be it an investment advisory or another consultative, service-oriented profession. Along with first-hand accounts of people who have made the leap and are now succeeding in the best sense of the word, you’re going to see how to grow your business by increasing what your business means to your clients.
But I left you hanging from the cliff, back to the movie.
Following the instructions in his father’s diary, Indy steps into the void and, to his amazement, his foot lands on solid ground. A bridge existed, but its rocky texture perfectly matched the facing wall of the cavern, so that it was invisible from Indy’s perspective. Like certain ideas that surprise us with their simplicity while energizing us with their power, the bridge was there all along.
There is an invisible bridge before you now. This bridge leads to better-served clients, a more fulfilling career as a true advisor, and a life more closely aligned with your values. By walking across this bridge you can deliver your career to a place of authentic meaning – for your clients and for yourself. That place is difficult, if not impossible, to see but it’s there.
The bridge that takes you there has been rendered invisible – obscured by the constant pressure to develop your business by growing your client list rather than by servicing your ideal clients better. For decades, financial advisors and other professionals in advisory roles were told by their leadership, their partners, even themselves, to fatten their book of business. A beefier Rolodex, it was preached, was the way to a bigger piece of the pie. Sooner or later, the flaws in that mindset were evident to everyone who adopted it.
A more enlightened wing of the advisory business has long espoused a leaner book as the better way to grow. They cite the received wisdom of the 80/20 Rule, which in our business states that approximately 80% of your production will be derived from approximately 20% of your clients. The 80/20 Rule is no rule at all, but an immutable law of business physics. It’s like denying gravity. We could flap our arms all day, but with the weight of our bloated books and collective denial, we were never going to fly.
So why has this essential business truth never fully penetrated the day-to-day management of our business? There has been no bridge. Or more accurately, the bridge was there all along, just unseen.
In other words, there has been no process or business model that advisors can implement to transform the 80/20 Rule from a self-limiting clench to a liberating, income-multiplying force.