Registered Investment Advisors, Institutional Research Firms, Boutiques,
Wealth & Money Managers, Brokers, Investment Banks and Similar Can
Shout From the Rooftops Publishing Interesting, Exciting Communications

Delight & Bond With Existing Clients While Effectively Attracting New, Highly-Qualified Customers

Registered advisors, institutional firms, wealth management groups, brokers, financial planners, etc are frustrated by regulatory compliance crushing their ability to share their genius with clients & prospectsWe know the following are just a few of the all-too-frustrating, "you can't do that" experiences that stand in the way of growing your business...

  • You have stellar research and want to showcase it in exciting ways to further bond with existing clients and attract new business. You brainstorm various communication concepts within your firm and compliance & regulation crushes every idea.
  • You foresee many opportunities for existing clients & prospects and want to communicate them through some form of proactive (newsletter-like) publications or Internet mediums. Again, compliance & regulation shoots it all down.
  • You win some kind of award for your work or want to tout some of your career accomplishments with your clients or prospects. Regulations & compliance demand so much specific detail that it lets up to ALL of the air out of your intended message.
  • You want more freedom to market your rich capabilities at picking trades, forecasting market movements and so on in a customer & prospect-grabbing, upbeat manner... messaging that would be "must-see" for your target market. But yet again, compliance & regulation kills those kinds of business growth efforts too.

We know your pain from first-hand experience working with others like you.

What you probably don't know is that there is a low-cost & relatively simple way to do all of what you want to do and more. It's a smart, well-proven way to jettison to the merciless, every-great-idea-crushing aggravation of regulatory compliance shielded by the most fundamental of our Constitutional rights: freedom of speech & freedom of the press. In fact, entites such as the SEC, CFTC and similar are explicitly forbidden from regulating this 'big innovation' that you can almost certainly implement at your company.

How Regulated Investor & Trader Research Companies Freely Communicate Their Greatness...

If you are a registered investment advisor, institutional or boutique research firm, money or wealth manager, brokerage, investment banker, stock/options/futures/etf/mutual fund/commodities/currency/etc. analyst, fund manager or similar (any B2B and/or investor & trader-serving companies that have to register with investment advisory regulatory entities), there are enormous business, profit & customer communication opportunities in launching what is known as a financial publishing (hereafter FP) division at your company. A key legal decision from 1985- Lowe vs. SEC is a good place to begin to discover the very favorable shield from regulatory compliance an FP entity enjoys. That decision should help you recognize that Financial Publishers are largely segregated from many of the most frustrating compliance-based constraints & challenges your company faces every day.

Very simply, FP businesses are publishers. As such, they are shielded by first amendment protections. Many of the business growth ideas & tactics- even simple advisor:client communications- that get crushed under the weight & red tape of registered-side regulation & compliance can be utilized with no issues within your own FP small business unit (SBU). If your company added a FP SBU, you could capitalize on such innovations there rather than just dismissing them as yet another thing you can't do within the painful limitations of existing regulatory shackles. Many of the idea killers- especially those related to how you would most like to communicate your brilliance, experience, accomplishments & trading performance, etc with clients- can be turned into "Yes, you can do that" actions... and not as watered-down, toothless messages but as interesting, exciting, client-wowing communications.

NYSE building front

Some FP industry players encroach on your registered-side territory as part of growing their businesses over time. One result is ever-increasing competition in YOUR space. The intrusion is driven by a growing number of their subscribers & customers requesting the opportunity to have their money managed directly- something an FP entity on its own is not allowed to do. When that segment of their business grows big (loud) enough, the strategic solution is often to create a new, registered-side business unit for those wanting that level of service. They are doing the reverse of the concept presented on this page: they're already a financial publisher and are now adding a separate, registered-side business unit to serve the type of clients- your type of clients- that want that kind of service. End result is exactly the same: a FP business unit PLUS a registered-side business unit... 2 separate business entities built upon many of the same core strengths.

These FPs don't even have to cold call to grow their client bases. They just provide an ever-growing pool of people whatever level of service they desire. You know how hard you work to add just ONE quality new account; an FP unit can make it easy to add many such accounts every month... with no cold calling... another BIG reason you should give this strategic solution serious consideration at your firm.

If you've made many futile pitches of communications & publishing-oriented ideas as potential ways to grow your registered-side business (only to have them decapitated by compliance), consider this proof that your instincts are absolutely right. They are! Your problem is trying to execute within the business and regulatory structure currently in place. You can't do much of what you want to do there (especially in most of the ways you'd really like to do it)... so think differently!

Creating a simple FP SBU is mirroring the move of those financial publishers who are increasingly trespassing on your space. With your very own FP SBU, the heavy weight of compliance and regulation is significantly reduced:

  • Everything you see them doing, you'll be able to do too.
  • You can shout your greatness from those rooftops... just like they do.
  • Your clients & prospects can hear- and be excited by- those messages & the research or education you've always wanted to share with them if you were only able to get such communications through compliance.
  • More prospects will respond by becoming new clients, just like they do for financial publishers.
  • You can make a lot of new revenue & profit with your FP. These are high-margin, recurring-revenue businesses capable of yielding tens or hundreds of millions each year from a lessor quality of research than what you are likely already doing... even when the performance of their track records are lower- even much lower- than your own.
  • There is no better pond from which quality new clients for your exising business can be fished. And an FP business pond is re-stocked much more effectively and in much greater numbers than anything even the finest registered-side marketing team can accomplish.

THERE IS NO SEC, CFTC or other equivalent regulatory compliance department for FPs. Publications like the Wall Street Journal, Barrons, IBD, Forbes, investor & trader blogs, E-zines, websites, newsletters, netletters and countless other magazines, books, ebooks, etc are outside the purview of those regulatory bodies. As a new publisher, you are merely following their example. Can those publications write about individual companies & markets? Yes! Can they offer any written speculation where such positions or markets may be trending? Of course, they can (and do). Do publications like investor newsletters tout trading performance, make specific recommendations in pretty much all markets and generally blow their own horn at how well they can project where everything is going? You know they do (and have for decades). Are they regulated by the SEC, CFTC and similar? No, they're publishers, NOT investment advisors, money managers or brokers, etc. As such, most of them don't even have regulatory compliance departments. Imagine not having a compliance department killing all of your good ideas!

You flex your first amendment freedoms and unchained marketing muscles by holding a job in BOTH entities- in the registered-side AND in your new FP SBU- and make the most of that remarkable new communications versatility afforded by the latter. A high volume of new prospects are more likely to discover your greatness through the FP-side communications and then seek out your money managing or advisory services. And won't all of your registered-side clients appreciate getting to regularly hear your own thoughts & views about the markets, recent & future trades, etc... exactly as you want to share them?

The Default, Self-Defeating Defense: "But we're different"

When considering the concept, it's often that same initial reaction by the registered-side players. The contrast is telling:

  • Business people in careers on the FP side see starting a registered-side business unit as just a new business opportunity... a natural extension of what they are already doing because they have a segment of their database asking for that kind of relationship. No resistance. No "We can't because..." They're gung ho to embrace something different to further grow their business.
  • Business people in careers on the registered side see starting a FP division as nearly impossible in spite of enormous tangible evidence to the contrary, including many readily-discoverable FP "gurus" who own and head both kinds of businesses (and have for many years). "If they can do it, why can't we?" seems like a natural mentality but the registered-side professionals almost always marginalize away such examples... even those they can clearly see with their own eyes.

The key to understanding why each side sees the mirror opportunity so differently is to understand the fundamental mentalities:

  • The FP professionals see all opportunities with great optimism because they have always enjoyed wide-open, first amendment freedoms in running their business. You might call them the "can" entrepreneurs because they feel they CAN do anything they want.
  • The registered-side professionals have always seen all marketing and business opportunities as having to be run through a compliance gatekeeper, where so many of their ideas & marketing messages are up to fully neutralized. In short, they might be called the "can't" entrepreneurs because they perceive they CAN'T do (almost) anything prior to gaining Compliance pre-approval.

Neither is more wrong or more right from their own perspectives & experience, but it is always interesting to see the stark "half full" vs. "half empty" view of the very same end result opportunity of owning both kinds of business units.

Because it's their (very important) job within the registered-side business, compliance professionals are fully programmed to think within the rules of regulatory law. As such, those "CAN'T" constraints are all built up within the bubble in which regulatory law is applied. The compliance officer must be master of that bubble because they are held accountable for "getting it right" with respect to that particular set of laws. But that's not the ONLY law, which leads to a key concept (bigger than compliance):

Regulatory law is NOT the supreme law of the land!

In the priority of law, Constitutional law trumps all subordinate law- of which regulatory law is just one subordinate. Think through this simple chain of examples: Local county or city law can be overturned by State or Federal law and State law can be overturned by Federal law. Regulatory law is just a subset of Federal or State law. Constitutional law is at the very top of this mountain. The primary law for publishers is Constitutional: freedom of the press, freedom of speech, etc. These particular freedoms were made Amendment #1 for a reason. They are not Amendment 56 or 508 because the founding fathers wanted these to be the very pinnacle of governing law... that there should be no confusion of even 55 or 507 other amendments (before them) implying a higher priority of law than Amendment number ONE.

When challenged by just about any subordinate law, first amendment law just about always wins. To get a quick & easy feel for just such a test to the extreme, watch the 1996 film "The People Vs. Larry Flynt" paying close attention to the ideas just shared. In the movie, Flynt faces challenges by every level of law- local, regional, regulatory, state and federal. The test is just about every level of subordinating law vs. a first amendment defense. It's an excellent example of illustrating the blanket of first amendment protections against the extremes, popular opinion at the time and just about every possible challenge of lower level law. It illustrates the supreme importance afforded to all by the bill of rights, as intended by the founding fathers: to make certain fundamental laws supreme to all others. It was so important to the founders of the country that they explicitly put these freedoms in writing within the supreme law of the new land and made it very difficult for those freedoms to be overturned or undermined. If you start your own FP business, you'll never push the extremes like Flynt did in his publishing business... yet the very same supreme law is there to protect your fundamental freedoms too.

Showcase Wow in an Exciting, Exclusive Internet, Mobile or Print Newsletter Clients Will Love

It's important to understand that starting your own newsletter significantly differs from using centralized services that provide a generic, white label newsletter on which you can attach your name & firm brand. That's a registered-side service we consider better than nothing, even though the messaging is still thoroughly watered down by regulations & compliance... so white-washed and toothless that it's a wonder if any of it gets read. Plus, that's not sharing YOUR OWN brilliance with your clients, just generic content from someone else that clients are very likely to also get (in an exact copy) from competition using the exact same outsource service. In short, it offers nothing to really bind clients to you or your firm.

Registered advisors, institutional firms, wealth management groups, brokers, financial planners, etc LOVE the freedom to communicate with their clients FREE of SEC, CFTC and similar regulation & compliance constraintsA financial publishing unit will allow you say whatever YOU want to say about positions, forecasts, personal achievements and so on. It won't be stamping your name on boring, generic content and then hoping your clients will be pleased... or even interested. It gives you complete control over a vehicle in which you can share YOUR individual enthusiasm, your unique genius about trades & markets, successes & potentials. Because it is exclusively your own content that followers won't be able to get from dozens or hundreds of other firms, it acts as an additional, powerful bonding tool to help you retain their business. It is also an enticing hook to attract multitudes of brand new clients.

Through this medium, you can finally capitalize on almost ALL of those ideas that have been deflated- or outright crushed- by "you can't do that" regulatory compliance. Set up & managed properly, both business units- registered & unregistered- coexist, often for many years... even decades. There is enormous precedent for the harmonious existence of registered & unregistered entities under the same umbrella. Great research in one of them can be the same analysis & qualitative production underpinnings for the other. As a registered-side company, you can significantly grow your business by making that mirrored move. There are no downsides, it's all just a matter of putting the pieces together in the right way- something our experts can help you do to the max.

Need another reason to explore the FP SBU innovation? Here's the best one of all...

Start Your Own FP to Multiply Revenues by THREE OR MORE Times

In every instance in which we've observed players with company units in both spaces, the FP arm tends to dominate in terms of revenues, profits, new customer acquisition volume, etc. The revenue multiplier is usually 3 or more times, meaning if whatever you generate now in total revenues is $X, leveraging some of the same output in an intelligently-assembled FP SBU is probably worth at least 3 TIMES $X... or more. More simply, if you currently have a $10M-$30M per year registered-side business, adding a FP unit can probably increase your overall revenues to $30M-$90M+ per year. Even the $1M-$10M per year boutique can appreciate the 3+ times multiplier with a new FP SBU.

FP business unit revenues scale with subscriber volume. This table illustrates FP revenues at various levels of average annual revenue-per-subscriber...

Quantity of Subscribers

The current "Kings" of the FP space easily exceed $100M per year in annual revenues. The smarter players use a number of proven, "big innovations" (hint, hint) to grow average revenue-per-subscriber to $550/yr or more and the monthly volume of new client acquisitions in the hundreds or thousands (when did your existing firm last add hundreds or thousands of new, revenue-generating clients in a single month?). That combination of customer volume and strong revenue-per-subscriber performance yields enormous, high-margin, RECURRING revenues they love. You will love them too.

Now consider this: if you check the QUALITY of most of the industry's research through an objective entity like Hulbert, you'll find that they make that money in spite of delivering what is often poorly-rated trading performance of their newsletter recommendations & research. Imagine the profit potential of introducing YOUR quality of picks & research to a somewhat frustrated market of well-proven buyers starving for a higher standard of analysis & recommendations. Those investors spend several BILLION dollars each year on what's offered now. You could quickly take a big bite out of that market.

Why Does a Financial Publishing SBU Yield So Much Revenue Growth & New Client Volume?

Registered advisors, institutional firms, wealth management groups, brokers, financial planners, etc celebrate the impressive new client base growth, lucrative recurring revenues, delightful tax advantages, diversified client risk and better opportunities to be seen by millions on popular business television networks & in the mainstream investor & trader publicationsThere are many reasons:

  1. It is far easier and much cheaper to acquire new clients through a FP business unit. The absence of regulatory shackles facilitates much more effective marketing communications toward growing a massive customer base (of which a good segment will prove to be among the most lucrative new clients you can add to your existing business). Very simply: you get far superior marketing budget ROIs when you are (much more) free to communicate your genius.
  2. FP businesses are usually built upon subscription-oriented business models which creates an ever-growing well of lucrative recurring revenues, impressive cash flows and delightful tax advantages (not to mention a very valuable new asset should the company ever choose to be sold). Recurring revenues flow in from subscribers like a river of cash. The business doesn't start each year having to earn all of its revenues from scratch; there's already a pool of dependable renewal transactions ready to be realized... week after week, month after month, year after year.
  3. FP businesses offer more stable revenues because they almost always work in high volumes of customers. Where a registered-side entity can feel great pain by losing one or two big accounts, an FP business diversifies that kind of risk to the many, so that losing one or even ten customers in any given week or month has a negligible effect on overall revenues. Very simply: the registered-side company is typically a qualitative business (relatively small number of clients with a higher revenue-per-client) while an FP SBU is typically a quantitative business (relatively large number of customers with a lower revenue-per-subscriber... but so many more of those subscribers).
  4. FP products like newsletters are natural social marketing mediums, meaning clients who like your publication are likely to turn other prospects onto it. Right now, registered clients can't easily pass on the quality of the experience of knowing & working with you (other than via a bland, second-hand referral). However, offering some of your quality in a newsletter, netletter, e-zine or similar is a simple, TANGIBLE way for them to pass an impressive sample of your genius to their peers. As a result, new subscriber revenues can seem to come from nowhere. Some of those will opt to become new accounts for the registered-side business too. FP products are exceptional to hand out to new prospects at luncheons, Investor trade shows, seminars, etc. They'll do a much better job of converting casual encounters into new clients than business cards and toothless (compliance-filtered) marketing packages.
  5. There are Millions of New Investor & Trader Prospects Following...

    As a Financial Publisher, you'll have much more potential to regularly appear on CNBC, Fox Business Channel & Bloomberg, and in the Wall Street Journal, Forbes, Barrons, IBD, USA Today & similar

    How Often Can They See YOU There?

    FPs attract many new clients there every day.
    Quality prospects could discover you too!

  6. As a publisher, you share your brilliance with many people at the same time. Among those are members of the press, business television & radio, Internet portals, vodcasts & podcast producers and so on. Some of those that like your newsletter may invite you to be on their show or quote you to their readers or listeners. This can turn hundreds of thousands or millions of relevant prospects onto you & your company in an instant. You've seen, heard or read many financial publishers on CNBC, Bloomberg, Fox Business Channel, and in the WSJ, Barrons, IBD, USA Today Money, Forbes, etc. FP owners are getting that publicity every day. Think about the business potential of you being showcased in front of those millions of investors & traders on a regular basis. You can't really do that very well one client at a time. But you can easily get there with a great FP SBU aimed at wooing the many.
  7. Etc. There are many more. Contact us and we'll help you discover the numerous FP advantages that can help your company grow revenues & profits to all-time records. You're already doing the research & analysis; why not further capitalize on it with a simple FP SBU and see how much additional profit it can make for your company?

Leverage BI Investor Publishing Consultants to Develop Your Client Communications Powerhouse

All of the above should help you recognize that adding an FP unit is an unmatchable strategic win:win. And note that an FP SBU does not need to replace your registered entity nor add any risk to your registered-side business in any way. Instead, it is well proven that leveraging a FP unit usually enhances the upside of the existing business. Having been in this particular space as long as we have... and having grown, participated in and/or observed the many successes of FPs adding registered arms to their business as part of their own strategic evolutions, we are surprised at why ALL of the registered-side firms are not all over mirroring the exact same business growth thrust:

  • Perhaps they don't realize that there is usually much more money to be made on the unregistered side?
  • Perhaps their long-term frustrations with compliance limitations make them believe that any such business is impossible... even when seeing countless FPs operating for many decades with their own eyes?
  • Perhaps this is just one 'big innovation' they've simply not thought of yet?

Whatever the case, hopefully this brief introduction gives YOU some clarity about the lucrative potential of simply adding a FP SBU at your own company. We would be happy to help you better explore this topic in more detail including specific applications for your firm or individual capabilities. Contact us for a FREE consultation.

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