It is estimated that there are 93.3 million U.S. investors and approximately 330,000 Financial Advisors or 283 investors for every FA.   

Are you getting your fair share?  If the answer is “No” the obvious question is “What can your firm do to enhance its client acquisition efforts?”   

Let’s look at this opportunity from two perspectives.  Let us first consider the vantage of those advisors considering the path of independence.  In our experience, advisors in this scenario typically make one common miscalculation.  Simply stated, that all of their clients will follow them.  From an investor’s perspective change is unsettling.  Viewed in the context of current levels of market volatility, potential government changes to Social Security, Medicare/ Medicaid, a depressed housing market, skyrocketing college tuition rates and uncertainty in the workplace investors have a lot on their minds.  Now you want to ask them, assuming you’re even allowed to reach out to your former clients in light of your non-solicitation agreement, to walk away from the stability of the institution to which you were both connected to follow you on your adventure?   Suffice it to say, more often than not, fewer clients sign up for that program than was anticipated. 

For existing FA firms, we often find that they have a stable client base, but their client acquisition efforts have stagnated over time.  Outside of a handful of referrals that convert to clients every year, the firm’s practice development efforts have reached a plateau.   Why?  More often than not these firms are not actively engaged in marketing, relying on quarterly newsletters that accompany client reports supplemented by the occasional phone call or face-to-face meeting.  Frequently, the firms that we meet which fall into this category tend to view marketing as an expense, rather than an investment in their business.  These same firms have invested in nice office space, a welcoming lobby with a beautiful sign displaying the firm name and brochures describing the firm stacked on the coffee table, just waiting for prospects to walk in.  So where are the clients? 

Growing anything requires a resource commitment.  Those resources include time, energy and yes, dollars.  Practice marketing is a necessary ingredient whether establishing or expanding a firm.  Investors have choices.  They actively seek out information as they weigh their options and develop their short-list of potential advisors that they would like to consider.  How are they going to find your firm if you’re not investing in marketing?   The answer need not be “chance.”   

Practice development involves four simple steps: 

1. Develop a marketing plan focused on goal attainment
2. Fund the plan sufficiently to boost prospect awareness and consideration
3. Execute the plan, drive visibility & distinguish the firm for competitive advantage
4. Monitor progress toward your client acquisition and revenue goals. 

The base elements of an effective FA marketing program are neither expensive nor time consuming and can be readily outsourced if the firm does not have the resources on staff to execute those programs.  They consist of having a dynamic website, branded content, email marketing campaign tool, a social media presence and a search engine marketing program.  Sound simple?  It is.  Sound expensive? It’s not.  Sounds like it will require a major time commitment?  It won’t.  Start now and get your “fair share” of those 93.3 million investors.  Interested in learning more?  Contact Cliff Campeau, Partner at Evolutionize, LLC at cliffc@evolutionizeMYpractice.com.