AUMpedia


AUM in a Box’s commonly used terms. Understand what we mean.

1, 2, 3 Learn How Easy Sales Can Be Process – AUM in a Box’s unique and effective three-step sales process: 1. Define who you are; 2. Understand your potential client; and 3. Identify and satisfy your potential client’s needs.

Archetype – A type of person, characteristic or thing.

Brand – Features/benefits that differentiate a product and/or service from its competitors. A brand is your reputation.

Center of InfluenceA person of a certain position within an organization or of a professional rank that can impact prospects in your target market.

Checklist – A template or aid used to outline steps in a task and/or process.

Competitive advantage – The relevant, unique and sustainable position or characteristic of a firm, product or service that is more appealing than that of the firm’s competitors.

Decision – The act of consciously making a conclusion/resolution that results in a subsequent action.

Discovery Process – A defined procedure of asking questions that get to an individual’s needs.

DITH (deer in the headlights) – The state of confusion and inaction because of too many priorities and responsibilities. Someone who is a DITH often does not know what to do next.

Fiscal cliff – A combination of expiring tax cuts and across-the-board government spending cuts in the United States scheduled to become effective December 31, 2012. Read our recent blog posts about the fiscal cliff here. 

Full retirement age (FRA) – The age at which someone is eligible for full retirement benefits from the government; it is no longer 65 for everyone. See http://www.ssa.gov/pubs/ageincrease.htm to calculate your FRA. FRA is also known as normal retirement age.

Income Multiple – A value, typically expressed as a factor, used to multiply a business’s economic benefit (such as a seller’s discretionary cash flow, business gross revenue or business net sales) to arrive at the value of the business.

Norm factor – A firm, product or service’s unique characteristics that differentiate it from the competitor, creating ‘Norm Peterson’ (from the hit 1980s show Cheers) clients who are loyal and consistent.

Pain sheet – A list of issues, concerns and/or worries accompanied by solutions.

Primary insurance account (PIA) – The benefit (before rounding down to next lower whole dollar) a person would receive if he/she elects to begin receiving retirement benefits at his/her full retirement age (FRA). At this age, the benefit is neither reduced for early retirement nor increased for delayed retirement.

Process – A series of steps taken to accomplish a goal; a procedure/method to achieve an end. Read about process in “A Method, or Rather Process, to the Madness.”

Recurring Revenue – Predictable, consistent revenue that can be counted on well into the future. Monthly membership fees and annual dues are good examples of recurring revenue.

Social Security spousal benefit – Benefits due to a spouse of a U.S. worker who is eligible for retirement benefits from the government. The spouse does not have to have ever worked under Social Security.

Social Security worker’s retirement benefit – The benefits, including Medicare and retirement payments, due to an eligible US worker at his/her full retirement age (FRA).

Value – The benefit(s) a firm, product or service provides to its clients.

Value proposition – A phrase that states what unique, quantifiable benefit(s) clients receive from a firm, product or service.

Value of business – The monetary value that a business is estimated to be worth; typically derived from using a valuation multiple.