Digital marketing for financial advisors is constantly evolving and advisors must stay up to date if they want to make the Internet a significant source of new clients, assets, and revenues. While every digital marketing agency promises to elevate the businesses of financial advisors with their expertise, unfortunately, some agencies mislead them to win their business.
How are financial advisors supposed to know which agencies can help them achieve their goals and which agencies are misleading them with false promises? This article will describe some of the marketing tactics that mislead financial advisors.
“100% of the financial advisors we talk to have websites. 18% say their websites are important sources of new clients.”
At the end of this article, we will provide some conclusions that will help financial advisors select the best digital marketing agencies.
Some Digital Marketing Agencies Over Promise and Under Deliver
One of the more common marketing tactics used by some financial advisor digital marketing agencies is the promise of exceptional results within unrealistic time frames. To secure clients, they tell financial advisors they can expect high search engine rankings, substantial web traffic, and an influx of new leads in a relatively short period of time. However, these agencies often lack the resources or expertise to deliver on their promises, leaving financial advisors frustrated and disillusioned.
It is fair to say, the less financial advisors know about digital marketing services the better this sales tactic of misrepresentation works.
Some Digital Marketing Agencies Misrepresent Their Specialized Expertise
Another story that digital marketing agencies tell financial advisors is that they have extensive industry knowledge. They know this is what financial advisors want to hear. Consequently, they may claim to have a deep understanding of financial services regulations and the financial advisors’ need for a steady flow of new leads.
In reality, many of these firms lack experience in this sector and do not fully comprehend the nuances of financial advisor marketing. This lack of expertise can lead to unproductive marketing campaigns and wasted money and time.
Some Digital Marketing Agencies Will Manipulate Their Metrics
Some agencies are not above manipulating the data they use to market their services to unsuspecting financial advisors. Their goal is to make their digital marketing campaigns appear to be more successful than they really are. For example, they may present inflated website traffic numbers, social media engagements, and lead generation statistics. By selectively reporting metrics, these agencies can create an illusion of success which may cause financial advisors to select the wrong agencies.
Some Digital Marketing Agencies Have Opaque Pricing Models
Digital marketing agencies can deceive financial advisors by offering opaque pricing models. They may bundle multiple services together without providing a clear breakdown of the costs, making it difficult for financial advisors to assess the true value of the services being provided. By keeping the pricing structure ambiguous, these agencies can charge higher fees without a reasonable justification.
Some Digital Marketing Agencies Use Deceptive Techniques
To deliver quick results, some digital marketing agencies resort to deceptive techniques—unethical practices that manipulate search engine algorithms. These tactics may include keyword stuffing, cloaking, or using link farms to artificially boost rankings. Although these practices can lead to temporary gains, they often result in penalties from search engines that can have long-lasting consequences for a financial advisor's online presence.
Some Digital Marketing Agencies Put Their Interests First
Certain digital marketing agencies prioritize their own interests over those of their clients. They may recommend specific tools, platforms, or advertising channels that yield higher commissions or affiliate revenue, even if these options are not the best fit for the financial advisor's objectives. This self-serving behavior can lead to wasted resources and subpar results.
Some Digital Marketing Agencies Treat All Of Their Clients The Same
A one-size-fits-all approach rarely works for digital marketing strategies. Yet some agencies peddle generic strategies to financial professionals and represent them as original or custom work. They may even recycle templates or tactics used for other clients, without considering the unique needs and goals of the financial advisor's business. This lack of customization can result in ineffective marketing efforts that fail to resonate with the target audiences.
Some Digital Marketing Agencies Ignore The Human Element
Digital marketing agencies sometimes focus solely on the technical aspects of marketing, such as SEO, analytics, and advertising. While these components are essential, they should not overshadow the importance of the human element—building credibility, trust, and establishing genuine connections with potential clients. Financial advisors who partner with agencies that neglect this aspect may find their digital marketing efforts to be impersonal and unengaging.
Some Digital Marketing Agencies Outsource Without Transparency
Some digital marketing agencies outsource parts of their work to third-party providers without informing the financial advisors. While outsourcing can be cost-effective, it can also lead to quality control issues and misaligned objectives. By not disclosing this information, agencies can deceive financial advisors about the true nature of the sources of their services.
Some Digital Marketing Agencies Provide Inadequate Reporting
Inadequate communication is a frequent issue that financial advisors face when partnering with digital marketing agencies. A lack of transparent and timely communication can hinder the growth of marketing campaigns, as well as create misunderstandings and distrust between financial advisors and their agencies.
When digital marketing agencies fail to provide regular updates on campaign performance, progress, and adjustments, financial advisors are left in the dark about the effectiveness of their marketing efforts. This not only compromises the relationship between the parties but also undermines the advisors’ ability to make informed decisions about their marketing strategy.
Furthermore, some digital marketing agencies may provide superficial or convoluted reports that are difficult for financial advisors to comprehend. These reports often lack actionable insights or clear explanations of the metrics, leaving financial advisors unsure about the actual return on their investment.
By withholding crucial information or presenting it in an unclear manner, these agencies deprive financial advisors of the opportunity to assess their marketing performance accurately and make data-driven adjustments to their strategies. This lack of effective communication ultimately stifles the potential for leads that produce new clients, assets, and revenues.
Our Conclusions
I guess we could say “let the buyer beware”, but the following are ten tips that will help financial advisors select the best digital marketing agencies.
We recommend using the same rules that savvy investors use when they select financial advisors:
- Trust what you see, not what you hear.
- If it is too good to be true, it is probably not true.
- If the price seems too low, it is important to remember you get what you pay for.
- Spend time on the websites of the digital marketing agencies looking for insights that document the array and accuracy of their sales claims.
- Ask to see current examples of their most recent work.
- Google search the names of firms and principals on the Internet.
- Ask for documented responses to questions that prove they have experience working with compliance officers
- Determine if the professionals doing the work are independent contractors or employees.
- Determine if you have a single point of contact or if you are interacting with several professionals.
- Ask to review the reports that they provide to their clients. Clear? Actionable? Driven by solutions?
Remember, you are in the regulated industry, not the digital marketing agency.
