Matthew Somberg: How We Built a Wealth Management Firm From Scratch

In the competitive world of wealth management, building a successful firm from scratch requires a unique blend of vision, strategy, and adaptability. Matthew Somberg, co-founder of Gottfried & Somberg Wealth Management, has navigated this challenging landscape to create a nearly $2 billion advisory firm with a team of nine client-facing advisors and approximately 30 employees. In this article, we explore the key factors that contributed to their remarkable organic growth and the lessons learned along the way.



A Humble Beginning

Matthew Somberg's journey began in the "eat what you kill" environment, where he was thrown into the fire at the age of 22 to accumulate clients and assets. This experience, though challenging, shaped his approach to building his wealth management firm. He emphasizes the importance of capacity and balancing rainmaking and client service responsibilities. Instead of thrusting new advisors into selling right away, he implemented a structured career path that allows them to learn the industry, understand opportunities, and develop their skills before being asked to sell.

Mentorship: A Crucial Factor

Mentorship played a significant role in Matthew Somberg's career development and is a crucial factor in his firm's growth strategy. By providing interns and new advisors with a structured career path, he allows them to take their time, learn from experienced team members, and not be pressured to sell right away. This approach fosters a positive work environment, attracts and retains talented advisors, and maintains a high level of client service, ultimately contributing to the firm's organic growth.

Balancing Organic Growth and Client Relationships

Matthew Somberg balances the need for organic growth with the importance of advisor capacity and client relationships. He focuses on nurturing and maintaining existing client relationships, keeping them "alive" across every touchpoint in the firm. This approach has led to attracting 50-100 new clients per year with almost no marketing. To achieve this, he and his partner built a 20,000 square foot "one-stop shop" that houses their firm and complementary services, including attorneys and CPAs. This integrated approach allows them to provide comprehensive support to their clients, fostering stronger relationships and encouraging organic growth.

Monitoring Advisor Capacity

Matthew Somberg places high importance on monitoring "advisor capacity" to ensure that advisors are not overwhelmed by an excessive client load. By maintaining a healthy balance between client acquisition and client service, the firm can sustain its organic growth without compromising the quality of its relationships with clients. Additionally, he refers clients to third-party support professionals rather than employing them in-house, allowing the firm to focus on its core competencies while still providing clients with access to the services they need, further strengthening client relationships.

Navigating "The Messy Middle"

By prioritizing advisor capacity, client relationships, and a comprehensive service approach, Matthew Somberg and his team have successfully navigated "the messy middle" and sustained their organic growth. They have attracted new clients year after year with minimal marketing efforts, demonstrating the effectiveness of their strategy.

In conclusion, Matthew Somberg's journey from an "eat what you kill" environment to building a nearly $2 billion wealth management firm offers valuable insights into the importance of mentorship, balancing organic growth and client relationships, and monitoring advisor capacity. By focusing on these key factors, advisors can create a successful and sustainable wealth management firm in today's competitive landscape.

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