Desperately seeking members

As Advocis celebrates its 100th anniversary this year, one issue foreshadows a dark period for the industry’s largest advisor association. Membership is sinking. In 2004, Advocis had nearly 16,000 members. Today, that number has plummeted to about 12,000.

Those numbers must be leaving Advocis wondering how on earth to attract new members. After all, their current membership isn’t getting any younger.

First, Advocis needs to be realistic. There is definitely association apathy, as the majority of advisors do not belong to any membership association. That said, some accredited advisors are open to joining an association if it’s the right fit. I’ve done my own informal, unscientific poll with readers who are currently “association-free” but are open to changing that status.

Most told me a variation of the following: “It’s not worth the money to join an association. I have a designation and code of ethics that I’m bound to, so why bother?” Simply put, these advisors fail to see the value derived from forking over the membership fees.

Others add they’re focused on the bottom line. So ultimately, they want affordable errors and omissions insurance, and they want to network with other advisors from whom they can learn.

Are these things that Advocis emphasizes? They certainly have those benefits. But lately, Advocis’s focus has been on advocacy and national lobbying initiatives. While these are noble causes, right or wrong, they aren’t necessarily at the top of prospective members’ priorities lists.

Some advisors have a problem joining an association where there isn’t a common benchmark. (You could argue being an advisor is just that, but apparently it doesn’t wash.) One advisor takes issue with the fact that many Advocis advisors still do not have designations. While Advocis has emphasized that all members need to have one by 2010 or be kicked out, that requirement doesn’t create a sense of urgency for this advisor.

Other investment advisors I spoke with fell into one of two camps. They either say, “Advocis who?” or they feel Advocis is an association for insurance advisors only. Their perception isn’t totally inaccurate. Advocis’s roots come overwhelmingly from insurance, yet the organization bills itself as the “voice of financial advisors.” To truly be that voice, Advocis needs to understand what financial planners and investment advisors look for in an association.

Some financial planners have found homes in the Canadian Institute of Financial Planners and the Institute of Advanced Financial Planners, for instance. What’s missing is a grassroots, back-to-basics approach. Too many associations will have “feedback” meetings with those who are already in their inner circles. But, if the goal is to attract more members, that means having meetings with those whom you don’t actually know.

Where do you find these people? At your firm. At investment conferences. Go up to these advisors and make small talk. Ask for their opinions on associations. Arranging advisor focus groups could also be beneficial. Only then can Advocis examine its unique selling proposition critically and from the perspective of its next generation of members.

Deanne Gage is editor of Advisor’s Edge deanne.gage@advisor.rogers.com