Attention registered investment advisors: Get a free 10 minute on demand training on How To Build Relationships That Get Your Practice In Front of Hundreds of High Net Worth Prospects every week! https://www.yourdream50.com/ria-training Welcome back to Mythbusters RAA Edition number four. Today, ...

Attention registered investment advisors: Get a free 10 minute on demand training on How To Build Relationships That Get Your Practice In Front of Hundreds of High Net Worth Prospects every week! https://www.yourdream50.com/ria-training Welcome back to Mythbusters RAA Edition number four. Today, we're going to talk about a big myth in financial services, the 80/20 rule. I'm not saying it's a myth. I want you to apply it in a different way. So let's pretend that you have a hundred million dollars in assets under management. You charge a 1% fee and you generate $1 million worth of revenue. Or your goal is to generate $1 million worth of revenue. I'm going to pretend that you work 40 hours a week and I'm going to give you a month off. Thanksgiving, Christmas, New Year's and spring break with kids. Now, we're working 11 months. So if you've got a million dollars and you work 1760 hours, 160 hours times 11, that means your time is essentially worth $568 an hour. I would ask you the question, what of your work, and I'm going to tell you how to figure this all outin a minute, is worth $568? What's worth less? And what can we outsource or delegate it's worthless than $568 an hour? That’s normally where the 80/20 rule, where we apply it as advisors, as RIAs, and it ends. I'm going to tell you that 80/20 is fractal. And within every 80/20, there's another 80/20. So let's apply 80/20 to our 80/20 and say, "I want to generate$800,000 in 20% of the time, 352 hours a year." That means I do that math and my hourly rate now has to go to 2272. But within every 80/20, there's an 80/20. That means there's a top 10% of your activities generate 50% of your revenue. That means there's a 5/95. So that means if I want to generate 90% of the revenue, $900,000, and I wanted to eliminate 90% of my hours, I only work 176 hours a year, my time has got to be worth $5,513 an hour. Now, I guarantee you, you're doing things that are worth less that you could pay somebody else less than $5513 an hour to do. I want you to do a quick exercise for me. Do a time study, and I want you to grab a piece of paper and a pen, grab a calendar, whatever it is. And each day for the next week, I want you to track what you do all day. What types of activities do you have? So for example, I'll give you some of mine for my marketing agency, for financial advisors and RIA’S. I do podcast interviews, I do service appointments with existing clients to keep them happy. Or when I need to solve a problem, I do one-on-one meetings, getting to know an RIA for the first time to see if they're good fit with us. I do sales proposals and sales meetings to close those deals. And I do webinars. I lead, I participate in our team meetings and I do financials. So those are the seven things I do in email. Those are the eight things I do that fall into eight different categories of things I do every day. As a financial advisor, I do meetings with clients, meetings with prospects, meeting with team, and then financial. So there's fewer things we do in that firm. But some of those activities are worth more $5000 an hour. Same, this probably holds true in your practice meeting with aincoming client to get them to, let's say, do the financial plan presentation or sign the deal. Probably worth more after they sign and say, "Yes, I'll a cut all my assets over." Or, "Yes, I'll take that investment plan, that portfolio, that annuity, that insurance contract", whatever it is that you're offering them. The paperwork to fill all of that out, work less. Hypothetically, your assistant and your support staff should be doing stuff like that. You might've thought about this to some extent. But I want you to do a hypothetical exercise. After you track all your time for a week, I want you to say hypothetical scenario, God forbid your spouse has aterminal illness or a short-term illness, or your spouse goes away on a girls trip for a week. And you now have to do everything at home, and you have to cut your hours by 90%. So if you were working 40 hours a week, you now have to work four hours a week. What would you cut to cut 36 hours out of your workweek? And give me some comments in the videos in the spaces below. Shoot us an email. I'd love to see your time study. And we're going to show you in the next video myth number five. We're going to talk about why your marketing isn't working, and then we're going to talk about how to make it work. In a couple more videos, you've got to stay tuned, going to give you the two formulas formaking as much money as you want in the hours that you want in your RIA. So stay tuned for the next edition of Mythbusters.   Thanks for watching Mythbuster's Registered Investment Advisor edition. Seth Greene is the nation's foremost authority on direct response marketing for registered investment advisors.