Why do advisors believe that they have the inside edge to negotiate their own deal and go direct advisors invariably know somebody on the inside of the, of the competition. They know senior leadership, they know the local manager, they might even know the CEO. They might be friends with them. They might be neighbors of them.
They might be former managers. I mean, these firms encourage you to go direct to them.
And isn’t it obvious? Why? I mean, think about it. Does Tom Brady or LeBron James, can they not easily get in touch with any owner of any team and negotiate their own deal without an agent?
Now, you might not be the Tom Brady or LeBron James of the financial services industry, but trust that we represent many of them. Mean managers have an incentive to offer you the best possible deal for whose house there’s not yours. They work for the firm. They work the p&l of their own office, they worked with p&l for their entire firm. And yes, the worth the relationship to make you think that they believe that you’re getting the ultimate deal, but they’re not going to show you every penny, the last 100 or so advisors deals that were just inked. me think about it.
What if you were to buy another financial services company, a book of business? From another advisor? What from another firm, wouldn’t you rather go direct to that advisor from that other firm, and negotiate the best deal for yourself for your house, for your own p&l and work that relationship and knock out that agent, that agent who happens to be an expert in the industry happens to really intimately know that advisors business who demands top dollar and as a real tough negotiator.
And lastly, who’s shopping this advisors business with multiple buyers. Sometimes we hear but I don’t want to damage the relationship with this manager. Well, what damage is being done there, the agent is there to cement the deal as the if the agents there to help get the deal done. Managers love that they believe their platform and their firm. And their offer is the best.
So if an agent can help close the business, they’re all open arms. And it’s a good team effort. The visor works the relationship and the agent works. The the tough part of it the deal and all the components of the deal. He or she plays good cop and bad cop. That also goes for you. And for the manager. Sometimes we hear but it’s going to cost me money. And I don’t care to pay an additional fee.
Well, if advisors had to pay a cent Okay, $10, $1,000, 10,000, 100,000 a million dollars, okay to and went to an advisor to it to an agent’s pocket. Do you think that any advisor in this entire country would ever use an agent?
So how do they get paid? firms pay a separate and distinct fee to agents, recruiters well above and beyond any deal that an advisor is able to negotiate. And even when the absolute top dollar is paid to that recruit and trust, we’ve seen incredible deals, the highest deals the industry has ever paid. Agents get paid and all firms pay the same thing.
To conclude, firms really appreciate the help with a agents. Why, again, they act as a good cop, bad cop.
But most importantly, they help close the deal for their firm. They’re the ones who are helped negotiate, those are the those are the agents who help the relationship that an advisor has and cements the deal.
So don’t ask Should you go direct? Or should you use a top agent.