The Wela Way to “Ideal Clientele”
Wela Strategies has taken the industry lead in partnering with other RIAs to solve one of the most pressing systemic issues facing the investment advisory professional: “The Small Client Dilemma”. Today, most mature practices continue to serve clients with portfolios woefully under their firm’s current investment minimum. But why? Because they have not had a viable alternative to keeping these small and unprofitable accounts. The same small clients that consume critical firm capacity that could be directed towards managing highly profitable Ideal Clients and securing the next wave of HNW clientele. Read below to see how Wela’s Practice Management Partnership (PMP) suite of solutions can be leveraged to gain firm-wide efficiencies, maximize profits and greatly enhance firm value over the next decade.
1. Redirect Undesirable Prospects
Refer low-revenue clients and prospects to Wela and participate in revenue sharing at a rate of 20% of management fees for 2 years, 10% thereafter.
2.Outsource Investment Management for Small, Strategic Clients
For the small client you feel compelled to retain, take advantage of the Wela All-ETF model portfolios that are available at various custodians’ Managed Accounts platforms and other advisor platforms (Envestnet, Placemark, etc.).
3. Transition Clients with Challenging Economics to a Firm Designed for Them
The same clients who no longer make sense for your firm are often ideal clients for Wela Strategies. Create valuable firm capacity by transitioning out many of your low-revenue clients while generating income from Wela’s perpetual revenue share arrangement.
The Wela Transition
Wela offers a suite of Client Transition solutions to accommodate the needs of RIAs at different stages of their Client Enhancement plan. Whether you have identified a few clients who would be best suited at a firm focused on the smaller investor, or you are trying to finalize the sale of your practice by removing an unwanted segment of your client list, Wela can partner with you to ensure optimal results.
1. Clients Constitute a Segment of Your Practice that has Been Sold
• Your firm has evolved over the years to best serve investors with portfolios over $500,000 in assets.
• Your due diligence regarding who their next trusted advisor should be has led you to Wela Strategies.
2. Transition Takes the Form of an “Extended Hand-Off”
• Wela models are incorporated into identified clients’ accounts.
• These clients become familiar with Wela Strategies.
• At the appropriate time, you announce an agreement with Wela to begin serving these clients directly.
3. One by One
At your own pace and comfort level, discuss with clients why you feel they would be better served in the long-run by working with Wela Strategies.
4. Part of Your Succession Plan
The sale of your practice is predicated on the removal of smaller clients from the account book. Wela steps in to cement the transaction by absorbing these relationships.