T R
HE
UMMAGE
R
EPORT
The “Sports Agents” Of The Financial Industry
Job Market:
The Rummage Group is a boutique career consulting firm
Brokerage – I have heard some
specializing in the Financial Industry. We are the “Sports
crazy deals recently. Just when
you thought firms could not get
any more aggressive they
exceed expectations. Wire
houses have even been going
after independent advisors and
the offers have been off the
charts. I guess they know that
independent advisors move more
of their books than any others.
Since there are so many
advisors that have moved in the
last 18 months, there is less
movement now. This tees us up
for big, big, big deals.
Agents” for Financial Advisors. There are over 1,000 firms that
employ Financial Advisors and the average advisor is only familiar
with a handful. When an Advisor decides to start looking at other
opportunities it can become very time consuming and frustrating.
Finding good accurate information on the firms available,
transition packages, platforms and the pros and cons of each can
be overwhelming. An average advisor only speaks with a couple firms when making a
move. The move is usually made with limited information much of which comes from a
biased associate, friend or manager that works at the interviewing firm. Many miss out
on very good options because they are unaware they exist. At The Rummage Group
we save advisors the heart ache of having to do it alone and rely on biased information.
Because we do business with so many firms, we can provide accurate unbiased
Banking – Still weak but
improving. Banks have not really
started to expand yet but instead
just replace. I have seen more
hiring recently and less quality
individuals on the street. All
signs of slow steady
improvement.
We Have
Opportunities At:
assistance during such an important change. The Rummage Group is truly a one stop
shop that can save advisors time, provide accurate up to date information and keep
them from possibly making a big career mistake.
Rick Rummage
Areas Of Expertise:
Brokerage: we work with Senior Level Manager, Branch Manager, Sales Manager,
Financial Advisors, Financial Analysts, Operations Managers and Compliance Officers.
Wire Houses
Regional Firms
Banking: we work with Senior Level Managers, Commercial Lenders, Private Bankers,
Wealth Managers, Credit Officers, Portfolio Managers and Branch Managers.
Large Banks
Small & Medium Banks
RIAs
For more information on Rick Rummage and The Rummage Group visit:
www.therummagegroup.com or http://www.linkedin.com/in/rickrummage
Small Financial Planning Firms
Independents
Boutique Firms
Featured Article
Discount Firms
Insurance Companies
AND
Opportunities to start your
own business outside the
Financial Industry
Quote Of The Month
As you grow older, you'll find the
only things you regret are the
things you didn't do.
Zachary Scott
Tip Of The Month
Kick The Tires Before You Leap.
I find that most individuals do not
investigate a company like they
should before they move. The
process usually involves 2-3
meetings and many times only one
of them is in the office where the
candidate will work. Many times an
individual figures out that they
landed at the wrong firm after
working there for a few months.
Sometimes this could have been
avoided by kicking the tires before
they moved.
Here are a few ideas for the
interviewing process: visit the office
where you will actually work. Meet
the staff (Ops Manager, Sales
Assistant, Sales Manager,
Compliance Officer etc). Ask many
questions about the negatives and
positives of working there. Do a
technology demo. Get copies of the
Benefits Package, Payout Grid,
Product Offering, Contract and
Policy Manual. Ask to see the office
you will occupy. If you do a lot of
Bond Trading, ask to speak with the
Bond Desk etc.
If you really do your research before
How an FA Doubled Revenues
Without a Single Cold Call
By Nicole O. Coulter
Horses mouth Senior Editor
How did one advisor give up conventional business development methods like cold calling and
seminars and still increase his revenues by 100%? Patience, persistence, and a four-step process
he calls "predatory prospecting."
After six years of rehashing the same old prospecting techniques—cold calling,
seminars, and random referrals—Scott Carr decided that his small-town practice
was ripe for a more efficient method of bringing in business.
"I began to realize I had all the contacts I would need to grow my business," says
Carr, an advisor with a regional firm on the East Coast. "At $50 million in assets
under management, you probably have all the potential clients you can handle—
you just don't know it yet. I decided that if I took care of my clients, they would
take care of me."
About two years ago, the 29-year-old Carr set a five-year goal: to double his
assets under management and triple his revenues by taking what he describes as
a "predatory" approach to referrals. "Instead of prospecting with a shotgun,
you're prospecting with a scope and rifle," Carr explains. Here's how it works.
Step 1: Segmenting your book
Carr started by segmenting his book into "A," "B," and "C" clients. This is a
critical step that maximizes your chances for multiplying ideal clients.
"'A' clients are the ones you most want to replicate," Carr says, pointing out that
his clients in this category tend to be centers of influence in their communities
and to share the following characteristics:
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Affable personalities
Realistic expectations
Excellent relationships with him
Significant assets and revenue
"I discovered that nearly three-quarters of my business comes not just from 20%
of my clients, but from 20 clients," Carr says.
Step 2: Identifying potential referrals
you move, you will reduce your
chances of making a big mistake.
For more information contact:
Rick Rummage
Managing Partner
The Rummage Group
Off 703.435.2822
Fax 757.299.4677
Cell 443.739.7866
rick@therummagegroup.com
www.therummagegroup.com
Once Carr had assembled his list, he asked himself whether his "A" clients might
know others who would also make ideal clients. He broke down the welter of
possibilities into three main categories:
1. Family
2. Work
3. Neighbors
Ticking through his list, Carr made notes about people he'd heard his clients
mention. Like a detective, he began to tease out possible associations and
connections that were not evident at first blush. If a client worked for a particular
company or served as a trustee on a foundation or pension fund, for example,
Carr would research the players who controlled assets for that entity. His goal
was to build his own list of potential referral prospects, identify ways he might
serve them, and, at the appropriate time, ask clients for an introduction.
Step 3: Maintaining a list
To assist him in his referral research, Carr began a logbook listing each of his
important clients, as well as prospective customers within their circles of
acquaintance. Carr built three referral profiles for each client:
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Family. "The family relationship is the best place to look for referrals,"
Carr asserts. "There are so many intergenerational issues families need to
plan for."
o Carr developed a strong relationship with one client, for example,
who was the 70-year-old patriarch of an extremely wealthy
family. On the basis of this relationship, he asked for an
introduction to one son, and then to a second son—each of whom
had about $2 million in assets. Now he is asking the brothers to
introduce him to their sister.
o "If you have a client who's older, you'd better be spending time
getting to know the kids," Carr maintains. "There are going to be
considerable assets changing hands over which they'll end up
having control."
o In another situation, Carr cultivated a solid client bond, then
brought in the client's son, then landed her son's company's
retirement plan. "The deeper you go with a client, the more
opportunities there are," he explains. "Clients eventually turn to
you as a financial resource."
Work. Carr listed his clients' places of business, their co-workers and
supervisors, and the boards that they serve on. He also researched the
names of the important decision-makers and tapped into the databases of
local retirement plans to identify potential opportunities. Often he got
these databases from his mutual fund and annuity wholesalers. "I
reviewed my files to find out where clients worked and whether they had
a company retirement plan that fit my model," Carr says.
For example, Carr met one of his clients through the Rotary Club and set


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up a small 529 plan for him. Then—knowing that this client was a CFO
who controlled a $6 million corporate retirement plan—Carr went out of
his way to provide top-shelf service.
"Normally on a $6,000 account, I'm not going to do a lot of analysis or
dig up a lot of outside articles, but I did for this guy," Carr remembers.
"After a year of serving him, I asked him what he didn't like about his
current retirement plan. I was able to turn a $6,000 account into a $6
million account."
In another instance, Carr knew a CPA who had worked as a third-party
administrator on a $5 million profit-sharing plan. With her help, he set up
a meeting with the plan trustees and won the account.
Neighbors. Carr determined where clients and prospects lived via crossreference directories and reverse telephone directories. "I look through
my clients' neighborhoods and see whether there are people I recognize
and would like to do business with. I build a profile that way," Carr
explains. The drawback? Often, clients feel less comfortable referring
neighbors than they would with family or friends. Carr hasn't had quite as
much success with this tactic, but he firmly believes in its potential.
Step 4: Asking for introductions
Once Carr identifies a referral opportunity, he asks clients detailed questions to
learn more about the prospect's situation. His goal is to prioritize his
opportunities by identifying the "pain" they're feeling in their current financial
situation or advisory relationship. For instance, if he hears a client mention: "My
grandma was complaining about how bad interest rates are," or " My brother had
a bad experience with an advisor," he asks the client for more detailed
information, makes a note of it in his logbook, and plans to follow up.
Carr tries to identify at least three potential referrals for each client. Patience is
key. "It might be a year before I feel comfortable asking to talk to someone," he
remarks.
Then, each time he meets personally with a client, he asks them about one of the
people on his logbook list. "Always hit them for one person every time you see
them," he says. "Rather than ask, 'Can I have some referrals?' you say, 'I'd like to
talk to so and so, the CFO of your retirement plan. Would you mind walking
down the hall and introducing me?' I've never had a single client say no."
The result: A 60% improvement
Less than halfway into his five-year timeframe, Carr has made considerable
progress toward his goal. Since 2001, his assets under management have
increased more than 60% and his revenues have doubled.
"Ideally, I'd like to have 50 clients with $25 million each," Carr says. "That
would be my dream book. Until then, there's always room for improvement. This
is just a matter of being attuned to opportunities and doing your homework," he
concludes. "This strategy works really well for established financial advisors
who have an existing client base."
Senior Editor Nicole Coulter specializes in helping financial advisors manage their businesses more
effectively. She has previously written about practice management issues for publications such as
Registered Representative and Bank Investment Representative. She holds an MBA from the
University of Nebraska at Omaha.
By Nicole O. Coulter
Horses mouth Senior Editor
Benefits of
The Rummage Group
We work very differently than other firms in the industry and truly are a
“One Stop Shop”. Whether or not you decide to utilize the Rummage
Group and its services, you will at least benefit from a better awareness
of your options. Some things to think about……….
“A Knowledgeable Partner To Help You”
Rick Rummage spent 20 years in the Brokerage Industry as a Top Quintile
Producer, Sales Manager & Branch Manager. He has hired, coached and
trained over 100 Financial Advisors. He worked at a Wire House, Regional
Firm and Bank Brokerage and has had first hand experience moving a practice.
Rick knows firsthand the challenges of being a Financial Advisor as well as
what it takes to move a book of business.
“How We Save You Time & Frustration”
Changing firms can be a full time job. Each market has anywhere from a dozen
firms up to hundreds and the average Advisor is only aware of a few. Each one
of these firms has strengths and weaknesses. Financial Advisors need to focus
on their clients at all times instead of researching which firms exist in their
market. We have spent hundreds of hours researching & building relationships
with many companies, so that you can focus on building your business.
“How To Get A Great Transition Package”
We know the mindset of the typical hiring manager, how recruiting affects
his/her goals, his/her negotiating flexibility, the approval processes, and how the
entire recruiting process is typically managed. This allows us to help you get a
very competitive transition package.
“The Real Pros & Cons Of Each Firm”
Because we do business with many firms on the street, we can give you
firsthand knowledge of each firm’s management, product offering, clearing firm,
technology, grid payouts, T& E allowance, administrative support, benefits,
culture, titles etc.
“Questions You Should Be Asking”
Transitioning your clients is the number one question during a move. There are
various strategies that can help you transfer more of your clients. There are
many things to think about: Should I have a business transition coach? Is my
firm part of the protocol? What will happen with my Non-compete or contract?
What should I tell my clients and how should I contact them? Who puts the
ACAT packages together and when are they mailed? Will clients get the same
margin rate and fees as they currently do? Should I have an Attorney and who
pays the fee? We can help you with these and many more important questions.
“How To Select The Right Firm For You”
Since we have relationships with many firms, we are unbiased about which
ones you consider. We can get you in front of multiple firms when necessary.
We work with Wire Houses, Regionals, Independents, Banks, Insurance
Companies, RIAs & Discount Firms. We can help keep you from possibly
making a big career mistake by ending up at a firm that does not meet your
needs. We don’t try to sell you, we try to help you. We build our business via
referrals from happy clients and we hope you become one soon.
.©2010 The Rummage Group
The Rummage Group
Off 703.435.2822
Fax 757.299.4677
Cell 443.739.7866
rick@therummagegroup.com
www.therummagegroup.com