The Legacy Client Challenge

Advisors often face the legacy client problem, where they maintain a large number of low-revenue clients that no longer serve the profitability needs of their growing business. While initial gratitude may exist for early clients who took a chance on them, the expansion and addition of team members can increase overhead costs, making those legacy clients a liability. The prevalent issue is that many advisors struggle to transition away from these clients due to emotional ties, fear of reputation damage, and the challenge of breaking long-standing relationships. Consequently, despite knowing the need for action, a reluctance to address this problem often leads to burnout and diminished business efficiency.