In financial services, it’s all about the clients. What your clients need, what they want, where they are, where they’re going and who they can refer along the way. There is no business without clients, and all financial advisors must be experts in the art of finding new clients and engaging existing ones.
“Prospecting is really the lifeblood of an advisory firm,” says John Anderson, managing director of practice management solutions at SEI in Oaks, Pennsylvania. “If you’re not growing, you’re dying, especially if the advisor has an aging book.”
As clients grow older, they shift from accumulation to distribution. “And as an advisor’s (assets under management) decrease, so will their income,” Anderson says.
So how is a financial advisor to keep a book young? By continually bringing new clients into an advisory practice and engaging the ones you already have.
How to Get New Clients as a Financial Advisor
For financial advisors, cold calling and direct marketing are the way of the past. Cold calls are hit-or-miss, and direct marketing is often chucked with the junk mail. There are far better sales strategies. Here are the top financial advisor prospecting ideas successful advisors recommend:
- Narrow your focus.
- Define your ideal client.
- Develop content marketing campaigns.
- Get social.
“It’s counter-intuitive, but advisors will attract more of the right prospects if they narrow their focus,” says Kevin Darlington, general manager of Broadridge Advisor Solutions in New York. “The advisor who takes the time to narrow the dimensions of their target audience will maximize their investment in time and money and ultimately reel in more of the right clients.”
Instead of targeting anyone with at least $1 million in investable assets, for instance, he suggests narrowing your criteria to prospects with, say, $1 million to $2 million in investable assets, who are