Why Most Advisors Fail and How Gen Z Can Change That
The odds are against new advisors. But that’s only if we follow the old playbook. Here’s how to build a path that works.
The failure rate in wealth management is one of the highest across any professional industry. Some say 70%. Others argue it’s closer to 90% if you zoom out long enough. Either way, it’s way too high.
But here’s what most people miss. A lot of this isn’t the advisor’s fault. The system was built this way.
Last week, I attended a session where the panelist unpacked the core reasons why most early career advisors fail and how young professionals can build a better path forward. These were the biggest insights.
The System Isn’t Broken. It Was Built Like This.
Some firms intentionally build failure into their model. They hire in bulk, knowing most won’t make it. The goal isn’t to develop you into a successful advisor. The goal is to capture the few clients or policies you bring in before you leave, then pass them off to someone else.
This mass recruiting strategy isn’t broken. It’s efficient just not for the advisor.
It’s a business model that works for firms, not for the people trying to grow inside them.
Why Most Advisors Don’t Make It
The reasons advisors fail early are not personal. They’re structural.
Career Misalignment: Many people think they’re entering a planning role, but quickly realize they’ve been placed in a pure sales environment.
Lack of Training: New advisors often receive product training but no real education on how to plan, communicate, or lead client relationships.
No Mentorship: Mentors are rarely assigned or structured. The ones who succeed often just got lucky with a supportive manager or team.
Unclear Expectations: Especially in smaller firms, there’s often no formal onboarding, no written development plan, and vague definitions of success.
When the expectations are mismatched from day one, failure becomes the default.
A Smarter Way In
A better path is already working across many firms. It starts slower but builds stronger.
Start in a salaried planning role.
Focus on learning how to build plans, handle client service, and answer questions before taking on sales responsibilities.
You don’t need to bring in business yet. You need to become credible first.
When you can confidently handle most client questions, that’s when you’re ready to step into production.
Transition to Growth the Right Way
Eventually, you’ll want to move into a client facing or revenue generating role. But make sure the transition is structured and supported.
Here’s what that can look like:
A clear runway with defined steps and expectations
A starting book of clients, whether inherited or co-managed
A compensation model that includes a livable base, performance bonus, and future revenue share
This approach gives you room to grow without being forced into panic-mode prospecting.
You Don’t Need a Niche Right Away
The niche conversation can feel overwhelming. Instead, think about it as passion prospecting.
Ask yourself:
Who do I connect with naturally?
What do I enjoy learning about?
Where do I already have some insight, credibility, or interest?
Some examples from the session included:
A Social Security specialist who became the go-to advisor in Houston
A rare paper and book collector who built her client base at niche events
Advisors who focus on QSBS, philanthropy, or digital estate planning
You don’t have to declare a niche on day one. Follow your curiosity. Let your expertise evolve with exposure.
Mentorship is Good. Sponsorship is Better.
A mentor gives you advice. A sponsor advocates for you behind closed doors and puts your name in conversations you haven’t earned a seat at yet.
If your firm doesn’t offer structured mentorship, find it elsewhere. Seek out communities that want to see you grow.
Final Word
This is a relationship business. And your early relationships especially with mentors, sponsors, and clients shape your future.
Most new advisors fail because the industry was built to let them fail. But that doesn’t have to be your story.
Here’s how Gen Z advisors can flip the script:
Learn how to plan before you learn how to sell
Focus on building expertise and credibility first
Explore your interests until a natural niche form
Get exposure beyond your firm to expand your perspective
Find the right mentors and even more importantly, sponsors
Join a team that’s committed to developing you long-term
You don’t have to be part of the 70% who wash out. You can be part of the 30% who thrive and help shape the next era of wealth management.
What’s one thing you wish more people knew before becoming an advisor?
Drop a comment or send me a message. Let’s help the next class come in stronger than ever.
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