Are you seeking organic growth for your financial advisor firm? If so, you must develop a reliable strategy that produces high-quality leads you can convert into revenue-producing clients.
It sounds simple enough, but it is an extraordinarily complex marketing process because the main product is other people’s money. The quality of your advice and services can have a major impact on their financial security for the rest of their lives.
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But you already know that. However, you may not know the most effective ways to reach these investors and convert them into leads, prospects, and clients. This makes generating leads an essential strategy for financial advisors seeking to grow their client base and remain competitive in an increasingly digital world.
Financial advisors must determine the best marketing strategy for their firm’s unique needs, strengths, goals, and marketing budgets. This article will provide insights that will increase your odds of implementing the right marketing strategy for your firm.
Financial Advisor: Firm or Professional
When the topic is the generation of financial advisor leads, there’s a key distinction that should be addressed. A financial advisor could be a firm or professional. The distinction is who is responsible for the production of leads. The firm or the professionals who work at the firm?
Financial advisory firms typically own their brands and websites. This ownership gives them access to various digital marketing strategies, enabling them to utilize various online channels to generate leads.
Financial professionals who do not own their firms or websites have fewer choices that exclude digital marketing and the Internet. They can produce their own leads or buy leads from third parties, but more about that later.
This distinction is crucial because it impacts the lead generation strategies that are used by financial advisor firms and professionals.
This article is written for financial advisor firms.
Types of Leads
The type of lead also impacts financial advisors’ marketing strategies. The two primary categories are retail and institutional.
Retail investors are individuals and families. They own and control their assets.
Institutional investors include pension plans that are controlled by businesses (401k plans), nonprofits (endowments, foundations), unions (pension), and public (pension) entities. In general, trustees control the investment of institutional assets, but they do not own them.
In this article, our focus is on marketing tactics that target retail investors.
The Internet Is An Extraordinary Marketing Game Changer
The rise of the Internet has revolutionized how financial advisors market their services to retail investors and generate high-quality leads. It offers a powerful and scalable way to connect with investors, especially for firms that have established online presence.
The Internet’s ability to create visibility, credibility, trust, and website traffic for financial advisors is unmatched by any previous method of marketing.
The Foundation Of Internet Marketing Is SEO.
One of the most powerful ways for firms to generate leads online is through Search Engine Optimization (SEO). SEO is the practice of optimizing a website and its content so that it ranks higher on search engines like Google.
When done correctly, this digital marketing strategy can create online visibility, credibility, trust, and highly targeted traffic for financial advisors’ websites.
It starts with a financial advisor website that is optimized for the Internet. It meets all of Google’s requirements for user-friendly websites.
Step one is creating informative and valuable content (such as blog posts, videos, and guides) tailored to potential clients’ questions and needs. Content addressing common financial concerns—like retirement planning, investment strategies, or tax efficiency—can also attract visitors searching for solutions on the Internet.
Building a strong social media presence allows financial advisors to engage with prospective clients on platforms like LinkedIn, Facebook, and X. Social media can amplify the reach of content and create opportunities for advisors to share their expertise, build relationships, and drive traffic back to their websites.
Optimizing financial advisor websites for local searches is especially important for advisors who serve clients within a specific geographic area. This involves using location-specific keywords, setting up Google My Business listings, and generating local reviews to increase visibility in local search results.
A fast, mobile-friendly, easy-to-navigate website is essential for converting visitors into leads. Financial advisors also need a transparent website that ranks well and offers a seamless experience for users, encouraging them to take the next step, whether scheduling a consultation or downloading a free offer (a gated eBook).
SEM With Relevant Free Offers
Search Engine Marketing (SEM) goes beyond organic SEO by using paid advertising to create visibility and drive traffic to financial advisor websites.
For financial advisors, SEM typically involves using Google Ads or other pay-per-click (PPC) platforms to promote their services. A key part of SEM is offering valuable, free resources that entice potential clients to provide their contact information. Some common lead magnets include:
- Investors can download eBooks on retirement planning or wealth management after providing their email addresses.
- Live or recorded educational webinars provide potential clients with in-depth insights into financial topics. These can serve as both a lead-generation tool and a way to showcase the advisor’s expertise.
- Interactive online workshops where attendees can learn about specific financial strategies while interacting with the advisor in a more personal setting.
- Free, no-obligation consultations through a website form is a tried-and-true method for converting online visitors into potential clients.
SEM allows financial advisors to quickly increase their visibility for competitive keywords and attract highly targeted leads by bidding on relevant search terms like “financial advisor near me” or “retirement planning services for new retirees.”
The key to success here is offering value to investors in exchange for their contact information.
Purchase Leads From Third Parties
For independent advisors without a strong online presence or brand, purchasing leads from third-party services is a potential option. Companies like SmartAsset, WiserAdvisor, and Zoe Financial sell leads that are generated by their digital marketing efforts. These services allow advisors to buy access to pre-qualified leads who should be actively seeking the services of financial advisors.
While this strategy can provide a steady stream of prospects, it has its limitations. Purchased leads often come with higher levels of competition, because several advisors may be pursuing the same lead. Additionally, these leads may not always be as high quality or as well-targeted as those generated through more organic methods like SEO or SEM.
The Demise of Outbound Marketing
While largely obsolete compared to the effectiveness of modern digital strategies (SEO, SEM) for financial advisors (firms), outbound marketing methods such as cold calling, direct mail, and traditional advertising are still used by some advisors (more likely to be individuals) to generate leads. However, these methods tend to be less efficient, have higher rejection rates, and be less productive.
Technologies, like Caller ID and spam filters, have made these marketing strategies even less productive.
In the past few years, some major firms that have relied on cold-calling by financial professionals, have discontinued the practice due to its invasive nature. Aggressive sales practices are not compatible with a profession that is based on high-quality planning and investment services.
Reaching out to potential clients via phone can still work for some advisors, though it has become increasingly difficult due to strict regulations and changing consumer behavior. Many people are wary of unsolicited calls, making this method less effective in today's environment.
Sending physical mail to prospects remains an option for some firms, particularly those targeting older demographics who may be more receptive to paper-based communication. However, the cost and diminishing returns have made it less popular in recent years.
Big firms advertise in newspapers, magazines, or on the radio or TV. In fact, these were the original inbound marketing strategies, when ads encouraged contact. However, they are not competitive with the precise targeting available through digital advertising.
The Best Leads are Referrals
Referrals remain among the most trusted and effective ways financial advisors generate leads. Satisfied clients will likely recommend their advisors to friends, family, and colleagues. Advisors can also encourage referrals by:
- Proactively asking clients for referrals during reviews or check-ins.
- Offering incentives, such as discounts on services or donations to a client’s favorite charity, for referring new clients.
Word-of-mouth referrals carry high trust because they are often based on the personal experiences of investors, making them one of the most valuable sources of new business for advisors.
A potential source may be reluctant to provide referrals if concerned about a referral’s future results. Why become involved in a friend’s financial situation?
Networking With Centers of Influence (COIs)
Building relationships with Centers of Influence (COIs), such as accountants, attorneys, and other professionals, can be a valuable source of referrals.
By establishing a network of trusted partners, financial advisors can gain introductions to potential clients who need complementary services. This type of strategic networking allows advisors to tap into a larger pool of prospects, particularly those who may not actively seek financial advice.
It is important to note that approximately 50% of CPAs also provide financial planning services, and 15% provide investment services.
Summary
Will these marketing strategies work for everyone? Unfortunately, the answer is no. Due to the competitive nature of the Internet, success requires a consistent commitment of time and money.
At the end of the day, what matters most are the financial advisor’s growth aspirations and a willingness to commit a steady amount of marketing dollars to their endeavors for a reasonable period of time.
Financial advisors have multiple strategies for generating leads for their firms. Whether using digital marketing techniques like SEO and SEM, purchasing leads, or relying on referrals and networking, each strategy has its strengths and challenges.
Financial advisors must decide what works best for their unique business model and client type, then commit to the strategies that deliver the best results.
