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Digital Marketing Makes Selling Financial Advisor Services More Efficient For RIAs

In today's rapidly evolving financial landscape, Registered Investment Advisers (RIAs) are faced with the challenge of not only managing their clients' investments but also staying productive in an increasingly competitive marketplace. Some RIAs are finding it increasingly beneficial to outsource their need for digital marketing expertise to an agency experienced in the financial services industry like Paladin.

This article explores the factors driving this financial advisor marketing trend, in particular among smaller firms, including the advantages and implications of outsourcing to third-party agencies, while also examining the positive impact of effective digital marketing strategies. 

By understanding the motivations behind this evolving marketing strategy, financial advisors can also learn to appreciate the strategic value of outsourcing to experienced marketing agencies that know how to reach investors who are seeking financial advisors.


Is marketing financial advice and services a strength of the firm?

Registered Investment Advisors (RIAs) are financial firms that are required to act as fiduciaries - that requires them to put their clients' financial interests ahead of their own. While many of these financial professionals are experts in managing investments and providing financial planning advice, they may not be skilled at marketing their services to individual investors and their families.

Not all digital marketing agencies are created equal. Find out what sets Paladin apart from the others!

Marketing financial advice and services can be a challenge for RIAs who may lack the necessary sales expertise, time, or other resources to produce leads and convert them into revenue-producing clients. 

Moreover, regulatory requirements can make it even more challenging when promoting their services through certain channels such as social media marketing or email marketing. For example, some compliance departments are still questioning their use of online reviews, ratings, and testimonials knowing advisors can manipulate what investors see.

To overcome this challenge, RIAs may need to consider working with an agency that specializes in digital marketing for financial advisors. Some agencies, like Paladin Digital Marketing, function as a Fractional Chief Marketing Officer that can help them create a comprehensive marketing strategy that aligns with their business objectives and target audiences.

While marketing financial advice and services may not be the strength of every RIA, it is essential for their long-term success and value. By taking a proactive approach to marketing and seeking professional assistance when needed, attracting and retaining clients and building a thriving firm is possible.


What if marketing is not the highest and best use of the RIA’s time?

Registered Investment Advisors (RIAs) are professionals who help clients plan their financial futures and manage their investment portfolios. Their role is crucial in guiding clients toward achieving their financial goals. However, if marketing is not considered the highest and best use of their time, then it can impact their ability to attract new clients and generate organic growth for their firms.

However, if RIAs find that marketing is not their strong suit or that they would rather focus on other aspects of their business, they should consider outsourcing their marketing efforts to a specialized agency that works in their industry.

By outsourcing their marketing efforts, they can free up their time to focus on their core competencies, such as financial planning and investment management. This can lead to increased client satisfaction and better investment outcomes, ultimately benefiting both the firm and its current clients.


What if the RIA does not like marketing?

It stands to reason some RIAs do not like marketing, in particular, if they have to initiate contact with investors who do not want the contact. Back in the day, cold calling (a form of Outbound Marketing) was extraordinarily inefficient. 

Many financial advisors dreaded this process due to the extraordinarily high rejection rates. Some even left the industry. Today, it has gotten even tougher with the advent of Caller ID and spam filters.

There are two issues at play here. Some advisors may not like marketing, but they are good at it. Other advisors do not like marketing and they are not proficient at producing leads or converting them into clients.

If RIAs are not proficient in marketing their financial advice and services to investors, it can have a significant impact on the growth and future values of their businesses. Inadequate marketing can result in poor visibility, making it difficult for potential clients to discover their services. 

This lack of exposure may mean missing out on valuable opportunities, as potential clients may opt for better-marketed competitors. Moreover, if the RIA is unable to effectively communicate their value proposition and differentiate their services, they risk blending in with the competition, further diminishing their chances of success.

In the absence of an effective marketing strategy, RIAs may need to rely on referrals from existing clients to generate new business. However, this approach may not be sufficient to support consistent growth. As such, it is crucial for RIAs to recognize the importance of marketing and invest in developing and implementing effective strategies, either in-house or by partnering with third-party experts. This will enable them to build their brands and the value of their businesses if they decide to sell.


How can digital marketing help financial advisors who struggle to market their advice and services?

Financial advisors should make digital marketing an important part of their strategy for selling their services to individual investors and their families.

We live in a digital world. The key to effective digital marketing is the potential of the Internet to connect investors and financial advisors. 

First of all, digital marketing makes it easy for investors to find financial advisors on the Internet. The entry of a few keywords or voice commands help investors find pages of financial advisors. The more visible the financial advisors are on the Internet, the easier they are to find. This is measured by their rankings for keywords that are used by their ideal types of clients.

Second, once investors find financial advisors, they can use the Internet to learn more about the financial advisor firms and the professionals who work there. They will visit their websites and Google search their names. One role for digital marketing is to build competitive websites that can convert more visitors into qualified leads. Then blog articles, pillar pages, and social media posts build credibility and trust so investors are increasingly comfortable submitting their contact information to financial advisors.

Third, financial advisor websites should be designed to convert more visitors into qualified leads. An average conversion rate would be around two percent, so 500 visitors per month could produce ten leads. Of course, increased visibility produces more traffic which in turn produces more leads. 


Why does digital marketing produce higher-quality leads?

The roles of your website are to compete with other websites and convert more visitors into qualified leads. The latter can be based on the quality of the information that resides on your website.

It is reasonable to assume investors will visit multiple financial advisor websites and contact the ones they like the best.

The quality of the leads should be exceptional. That is because the investors spent time searching the Internet, visiting websites, and viewing online content before they made the decision to contact specific financial advisors.

This is Inbound Marketing at its finest when investors use the Internet to find, screen, and contact financial advisors. Since they usually contact the ones they like the best you can also assume they have positive predispositions toward the financial advisors they decide to contact.


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