The $1.2 billion Householder Group is hitching its ambitious growth plans to LPL Financials star.
The network of 40 independent hybrid advisors and broker-dealers, based in Scottsdale, Ariz., and currently clustered on the west coast and in the south and southeast, hopes to expand to the northeast next year, open 50 more offices across the country and double its revenues, says chief executive Scott Householder.
The longer-term goal: 175 offices nationwide.
Householder Group targets clients with $500,000 and above in investable assets, and specializes in retirement advisory services for businesses.
After spending 13 months conducting extensive due diligence research on the
The firms previous broker-dealer was Securities Service Network.
RISE OF 'SUPER OSJs'
Householder epitomizes the rise of large, fast-growing regional firms sometimes called super OSJ' firms," says industry consultant Tim Welsh, president of Larkspur, Calif.-based Nexus Strategy. Collectively, these firms form a compelling trend and disrupter in the advisor industry, he adds.
These large OSJs are becoming successful due to their marketing strategies, single brand and economies of scale, Welsh says. They can leverage their size, assets and advisor numbers to get the best results and autonomy from the B-Ds and custodians."
LPL has made a "deliberate strategy to welcome and embrace the super OSJs rather than competing with them," Welsh adds. "Look for more large branches to consider switching broker-dealers. If LPL is successful, ... look for their competitors to have to also sweeten the deals with their large advisor groups.
Householder Groups biggest selling point to independent hybrid advisors is its turnkey marketing system, Householder says. The firm sets up everything for its affiliates -- from furniture to how photos are displayed on desks, in addition to back-end and middle-office support and an asset management and investment product platform.
Householder Group splits fees with its affiliates, most of whom use the Householder brand, Householder says.
LEAD GENERATION
Lead generation is Householder's strength, says Bill Morrissey, executive vice president of business development at LPL Financial. I think theyve cracked the code on how to generate a steady volume of qualified prospects and client leads, he says.
The leads are generated from the firms numerous marketing programs, including a human resources education program in which advisors go into workplaces to conduct retirement workshops, according to Householder.
The firm also runs programs with so-called centers of influence, he says, with the firm's advisors featured as expert guest speakers at seminars and client appreciation events held by estate planning attorneys and CPAs. Complimentary consultations are then offered to those attending; he says 90% of attendees usually sign up.
Householder Groups northeast expansion strategy will focus on Boston, New York and Washington, D.C. and nearby suburbs, Householder says.
The firm has added six advisory firms to date this year, and will rely on LPLs tools, technology, product offerings, recruiting and practice management support to achieve its goal of exponential growth, Householder says.
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