15 - Impress with Knowledge Compounding
Updated: Dec 27, 2019
Albert Einstein is often quoted as saying that Compound Interest is “the most powerful force in the universe!”
He was of course referring to the ability of assets to generate superior earnings by continuously adding previous earnings to the amounts invested.
Successful Advisors use a similar concept to engage their clients and colleagues with their superior knowledge … We call it “Knowledge Compounding”.
With “Knowledge Compounding” Advisors start with the baseline of their own expertise. However, in order to make superior returns, they don’t simply apply that expertise in a bespoke fashion to a series of different clients. Instead, they do the rounds with their clients and prospective clients learning as they go along.
By picking up nuggets of knowledge along the way, their knowledge compounds … And so does their value!
“Knowledge Compounding” can also take some of the pressure off the Advisor with the following three steps:
1. Create an annual plan to meet regularly with clients and targets;
2. Take note of nuggets of knowledge picked up during meetings;
3. Share knowledge gained during subsequent meetings.
Not rocket science! … But, just like compound interest for investors, its surprising how few Advisors consciously practice ”Knowledge Compounding”.