“They’re Not Always Wrong.” Why I Quit My Job And Launched Wayfinder.
6 MINUTE READ
I’m going to tell you why I quit my job and started Wayfinder. But first, a life lesson from an NBA referee.
I used to do this crazy thing called refereeing. To be exact, I officiated basketball and I thought it was an absolute blast to run up and down the court and be yelled at constantly. Many of you say this is the worst thing about watching a sporting event with me – the fact that more often than not, I’m defending the refs while you yell at them.
Early on in my officiating career, I traveled out to Las Vegas for the Adidas Super 64 basketball tournament, where I officiated and learned from a bunch of NBA referees. NBA Finals, NCAA championship, and Olympics veteran Joe DeRosa made a point by saying, “When the whole house is coming down on you and screaming at you about a call, when the coach is jawing in your ear, and when the players react demonstratively, they’re not always wrong.”
If you’re an average sports fan hearing that, you’re probably saying, “Amen!” But two of the hardest things to do for the average human, let alone a referee being screamed at by hundreds or thousands of people, are to admit you’re wrong and to change your mind. As a 19-year-old, green-as-could-be referee like me sitting in that room, DeRosa’s lessons of humility, admitting you’re wrong, changing your mind, and most importantly the lesson of listening to and learning from the other side of an argument, left an impression.
Reflections From Six Years As A Commission-Based Advisor
The lessons from DeRosa echoed in my head as I decided to start Wayfinder. I used to defend the commission-based financial services industry and took it personally when friends criticized the hidden fees and pushy product salespeople and when they insisted “fee-only” planners were the answer, but over time I realized they might be right.*
*I know many of you reading this might not understand the difference between commission-based and fee-only planners, let alone the different business models within those categories. For now, know that there are incentives which create conflicts of interest in many fee-only models, too, and I’ll explain why I designed mine differently in my next blog post.
I’m not suggesting that other financial planners, commission-based or not, are greedy and untrustworthy, or that all their advice is bad. That’s a stereotype that is simply not true. Just as in refereeing, many of these professionals are fair and trustworthy. However, when you hear the same feedback over and over, when the “fans” are up in arms over what they deem as unfair, you can’t always put your head in the sand.
I’ve been in the industry six years, and though I always strived to provide holistic care and to tune out the materialistic “more, more, more” money talk, I couldn’t fully ignore that noise as a commission-based planner. I was not only in an environment that glorified materialism and consumerism, I was also heavily incentivized to suggest some products over others and to pursue new sales over servicing clients who had already bought something – at least if they couldn’t buy anything else again soon.
“I’d find myself sitting across the table from someone who needed to be heard on matters much deeper than dollars, but distracted by the fact that they weren’t a good fit for the product I needed to sell to meet a quota.”
I’d find myself sitting across the table from someone who needed to be heard on matters much deeper than dollars, but distracted by the fact that they weren’t a good fit for the product I needed to sell to meet a quota. This would have me thinking (while still in front of them), “Well, where can I find the person who is a good fit for the quota I need to hit?!” Can you imagine being that client and hearing that thought inside my head?
I attempted to navigate these incentives with integrity by transparently exposing all conflicts to clients. This was exhausting for both parties. It was complicated for me to explain and confusing to hear as the consumer. I also was stretched too thin, trying to serve too many clients because that’s what I was incentivized to do. The more new sales or clients I had, the more money I made, and the more money I made, the more rewards and accolades I received. Wait, isn’t that the American Dream?
My first years in the business, I met benchmarks that provided me all-expenses paid trips to the Caribbean, San Francisco, and Florida with my bride. Was that nice? You bet! But as I began to grow uncomfortable with pushing products and began concentrating on fewer clients but with a higher quality of care, I constantly battled anxiety due to the tension I felt, torn between focusing on client care and desiring to make money and be “successful” in the eyes of my firm. Over time it became clear to me that commission-only financial planning wasn’t best for me, or the clients I was serving.
Don’t get me wrong, I’m grateful for my six years in the industry. It allowed me to learn the trade from seasoned professionals and great mentors. It also helped me figure out who I am and what my values are, and I’ve now designed a business model to line up with those values and help me serve my clients the way they deserve to be served.
Wayfinder … Ready To Serve You
To come full circle, there are plenty of reasons I no longer referee or work as a commission-based financial advisor. In both cases, there was a tension between who I was and who I wanted to be.
Who was I as a referee? Passionate, committed, and having a blast. Who did I want to be more than that? A present family man who wasn’t neglecting my home life or my full-time career during basketball season.
Who was I as a commission-based planner? Resourceful, goal-driven, and social. Who did I want to be more than that? An entrepreneur who could serve my clients with integrity and a high level of care, with a business model to incentivize that. And only that.
In a perfect world, I would be able to referee and be the most present family man. In that perfect world, I also would be able to navigate the tensions of the commissioned-based advising at my old firm. Moving on was not easy in either situation. In fact, they were two of the hardest decisions of my life, and paired with a lot of anxiety, self-doubt, tears, and fear of leaving good things behind. However, both were clearly the right choice and eased an impossible tension inside myself. And in both cases I’m healthier and better able to serve you.
Now I can cheer on a team without always siding with the refs (well…sometimes), and I now can offer you transparent, no-strings-attached, compassionate financial advice that isn’t all about more, more, more.
You might be thinking, “This sounds nice, but how exactly does your new business model make this possible?” My next blog post dives into that. Be sure to subscribe below.
I’m excited to pour my heart into Wayfinder and into all of you. As a thank you for your support and friendship, I hope you can come to my Launch Event September 19!