Ep 311: Unlocking Growth By Asking For A Referral Commitment And Then Showing Value With Terry Parham Jr.

Financial Advisor Success

Michael Kitces

News, Business, Entrepreneurship, Business News

4.8 • 696 Ratings

🗓️ 13 December 2022

⏱️ 99 minutes

🔗️ Recording | iTunes | RSS

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Summary

Terry Parham Jr. is the CFO and Co-Founder of Innovative Wealth Building, an independent RIA based out of Maryland that oversees nearly $330 million in assets under management for nearly 900 households. After almost failing out of the business because of a struggle to secure new clients in the first two years of his career, he changed his approach and within 18 months was one of the fastest-growing advisors in his entire company.

Listen in as Terry shares how the small pivot to asking prospects upfront to commit to making a referral—only after he had shown them real financial planning value—turned his career around. We also discuss why he took time to confer with colleagues and conduct research before deciding to go independent, how he used dinner seminars as a way to consistently get $ 3 million to $ 5 million of new assets under management with every event (that cost less than $2,000 to host), and how a simple tool early in his career helped him to gain confidence and better relay information and connect with clients.

For show notes and more visit: https://www.kitces.com/311

Transcript

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0:00.0	Welcome to the Financial Advisor Success Podcast, where you go behind the scenes with
0:06.8	financial planner, speaker, and consultant Michael Kitsis to hear stories of how leading
0:12.1	financial advisors navigated the inevitable challenges that arise on the path to success,
0:17.2	and get insight from leading industry consultants about how to break through to the next
0:21.9	level in your advisory business. And now here's your host, Michael Kitsis. Welcome, everyone.
0:28.7	Welcome to the 311th episode of the Financial Advisor's Success Podcast. My guest on today's
0:34.2	podcast is Terry Parham Jr. Terry is the CFO and co-founder of
0:38.1	innovative wealth building, an RIA based in California, Maryland that oversees nearly
0:42.7	330 million in asset center management for about 900 client households. What's unique about Terry,
0:48.8	though, is how after nearly failing out of the business because he was struggling to get
0:52.8	enough new clients in his first two
0:54.3	years. He changed his approach to asking for referrals by asking process up front to commit to
0:59.3	making the referral only after he showed them real financial planning value. And within 18 months,
1:05.0	his new approach to turn around his entire career to become one of the fastest growing advisors
1:08.9	of the company. In this episode, we talk in depth about Terry's approach to gaining more referrals and
1:14.7	minimizing the need for other prospecting efforts by asking clients to pre-commit in their
1:19.6	initial introductory meaning that they would provide a referral in the future if they found
1:24.4	his financial plan recommendation to be valuable, and then simply followed up after
1:28.2	the financial plan was delivered and the value was provided with the referral request for them
1:32.2	to follow through on their part. We also talk about how after leaving a former firm and his referral
1:37.5	sources, Terry decided to rebuild his practice through hosting dinner seminars and Social Security
1:42.4	and Medicare using a third-party marketing
	...

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