058: David Bach on The Latte Factor, Building a Sellable Practice, and Why Growth Shouldn’t Mean Less Freedom

058: David Bach on The Latte Factor, Building a Sellable Practice, and Why Growth Shouldn’t Mean Less Freedom

In today’s conversation, David Bach is back for round 2!! David is one of America’s most trusted financial experts and bestselling financial authors of our time and previously appeared on Episode 21 for those of you that missed it. Today, we discuss the journey behind his new book The Latte Factor, which has already become an international bestseller. David shares his story of a dinner with Paulo Coehlo, author of The Alchemist and one of my favorites, that led to him finally writing this story after putting it off for over 10 years and why this story is so different from his previous 9 NYTimes Bestsellers.

We also get into why it’s so important for financial advisors to get in front of millennial clients right now, the power of buying your children shares of stock in their favorite companies, key factors that allow financial advisors to sell their firms for huge multiples, and why growth doesn’t have to mean less freedom. I think it will be clear after this conversation that David isn’t just some talking head who only sells books, but really knows our industry at a deep level.


Here are a just a handful of the things that you’ll learn:
  • [04:23] We start by talking about why David wanted to use the story format to teach a lesson in his new book instead of simply giving traditional financial advice in a nonfiction book – and how he immediately saw this book’s impact in his own children.
  • [08:30] David then shares the story of what happened at the end of a financial education class he taught that revealed the power of The Latte Factor to him for the first time – and why he’s been teaching it for years since.
  • [18:19] Next, David digs into the specific financial issues facing the millennial generation. We talk about the massive student debt they carry that previous generations didn’t, the financial services companies that are actively courting millennials, and why every advisor who doesn’t plan to retire in the next ten years needs to be building relationships with their clients’ children and grandchildren if they want to continue managing their wealth.
  • [26:12] David then tells the story of how his grandmother, on her deathbed, taught him to take risks – and how this moment changed the course of his life and career forever.
  • [35:58] We then dig deep into how certain financial services firms have been able to sell for massive sums, strategies financial advisors are (and aren’t) using to grow their practices, and why powerful, proactive marketing strategies that are trainable, scalable, and saleable lead to great success.
  • [46:29] This leads us to talk about why our industry has done such a terrible job of training people how to present information. We talk about why people have been saying for decades that seminars or other marketing strategies don’t work anymore – and what’s really going on when someone complains about this.
  • [48:30] Next, we explore how to overcome the limiting beliefs holding financial advisors back to get results, the beauty of building a business on your terms, and why becoming a CEO doesn’t necessarily mean less freedom.
  • [01:00:07] We end our conversation with David’s advice for young advisors – and the power of running an independent business of your own.



  • [6:45] Why a trip to Geneva to have dinner with The Alchemist author Paulo Coehlo led to him finally writing The Latte Factor after putting it off for 10 years and facing resistance from his publisher.
  • [13:45] How The Latte Factor is positioned to reach people of all ages – and why it makes such an effective graduation gift.
  • [18:35] Why it’s so important for financial advisors to get in front of millennial clients right now, and what successful millennial-focused firms look like.
  • [24:35] The reason David buys his kids stock in companies they’re interested in, even when these companies don’t succeed, to get them thinking like investors.
  • [31:25] The surprising responses David has received from readers.
  • [36:35] The key factors that allow financial advisors to sell for huge multiples, and how to cultivate an environment that positions advisors to succeed at very high levels.
  • [51:45] The importance of constantly testing and refining your marketing funnels to maximize performance.
  • [54:15] Why some advisors don’t need to market in order to continue running a thriving, successful business – and why growth doesn’t mean less freedom.
  • [57:45] Why you sometimes need to stop working with clients – and the importance of doing this to preserve and maintain company culture.





Thanks for checking out the latest show, on to this week’s featured reviews!

This week’s first review comes to us from user CailteK who says:

Thanks you! I love to hear that this podcast has helped you on your journey as an advisor. It’s true that as information has become more readily available to not only you but your clients as well, I see a theme from the most successful advisors out there that it’s key to be a life long learner and constantly stay at the top of your game. Great to hear you’ve learned that early in your career, keep up the good work!


The next review comes to us from ajstoller who says:

AJ, thanks for the review and the kind words! That’s a strong statement as there are a lot of great shows out there, but I’ll do my very best to keep delivering from my side of the mic. Thanks for listening in and taking the time to share your thoughts, I appreciate you.


And the last featured review for the week comes to us from user Kennyj007, who says:


Take the 1st Step to Building Your Ideal Practice: Apply for “Virtual Discovery Session

For those of you that have interest in diving deeper or figuring out how you may be able to have our team help you implement many of the ideas shared on the show, my day job happens to be consulting financial advisors from all over the US on how to grow their business and design a practice that serves them, versus them serving it. Yes it’s possible to grow your business and work less, this is a model we’ve replicated over and over in markets all over the country… So, if you’d like to apply to see if it makes sense for us to have a 1-on-1 conversation on how to overcome what may be getting in your way, you can do that at bradleyjohnson.com/apply. It takes about 5 minutes to fill out the application so we can understand what your business looks like, what challenges you may be facing and how myself and my team may be able to help. We then dive into a Discovery session where we ask a lot of questions based on your survey. We do a lot of listening, and take a lot of notes to build a rough draft of our proprietary Elite Advisor Blueprint – 90 Day Plan™. Taking the first step is as simple as applying at bradleyjohnson.com/apply 🙂


Already heard it once or twice? Please leave a short review here, and tell me which guests I should have on!




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This content is provided for informational purposes only. Please keep in mind; Rule 206(4)-1(a)(1) of the Investment Advisers Act prohibits the use of client “testimonials” in an advisors advertising.  Thus, investment advisors are strongly encouraged to obtain interpretive guidance and pre-approval from the broker-dealer or Registered Investment Advisers with which they may be affiliated before including testimonials, client stories or antidotes. Should client stories be included in your seminar presentations or any other advertisement, keep the following in mind: do not use a clients’ name, be sure to state that each circumstance is different, do not share stories that discuss financial success as a result of working with the advisor. Results from the use of these concepts are no guarantee of your future success.

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