The battle for financial advisor leads is fierce, with thousands of firms and hundreds of thousands of professionals marketing similar services to the same audiences. How fierce? The number one need for firms and professionals is more leads that generate more sales, assets, and revenues.
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Independent financial advisors face a tough question: Should they buy leads from third parties or generate their own? To compete with the platforms of the bigger lead gen companies, independent financial advisors must focus on five key areas: visibility, credibility, investor trust, differentiation, and cost-efficiency. Let’s break down how advisors can go head-to-head with lead generation companies, along with insights, based on 20 years of experience, into investor preferences and the credibility of these platforms.
Three Marketing Distinctions That Make A Difference
When describing financial advisors, we might be talking about either an individual professional or a firm. For the sake of this article (and your sanity), we’re talking about firms.
Why? Because firms usually decide who’s responsible for generating leads. And, in many cases, it’s a smaller firm generating the leads, with the advisor (who may also be the owner) following up. So, when we say “advisor,” just picture a firm being responsible for lead generation.
Digital marketing generates online visibility and website traffic. Financial advisor firms benefit because they own their brands and websites. In fact, it is safe to say every financial firm in America has a website. It may be a $99 rental or a full-blown custom site. This is where committing to a digital method changes or enhances a financial advisor marketing strategy.
Pro Tip: A lead generation company’s primary client is a professional without a brand or website. They have two options for leads: generate them on their own or outsource the work to a lead generation company. Some lead-gen companies have enterprise relationships.
Before Inbound Marketing, It Was the Cold-Call Cowboys
Remember the old days? When advisors were calling people who didn’t want to be called? Those “glorious” days of **outbound marketing**—a.k.a. Cold calling—gave financial professionals a bad reputation.
These calls were invasive, led to high rejection rates, and made the industry a little less lovable. Oh, and did we mention you didn’t need a website back then? Everyone had a telephone, and the “cowboys” could buy telephone numbers by the thousands.
But here’s the kicker: Caller ID killed outbound marketing faster than a cat meme went viral. Like in the telephone era, in the digital age, everyone has access to Google and inbound marketing processes.
Financial advisors still need leads, and outbound marketing is obsolete. What is next?
Who’s Actually Paying the Lead Generation Companies?
Surprise, or maybe not! It’s the financial advisors who foot the bill. Advisors pay these companies hundreds of dollars for bigger leads, hoping they’ll land a client or two along the way. They hope there is new revenue that exceeds the total expense.
But here’s the real question: is there a potential conflict of interest based on the representations of the lead generation companies and their actual services? After all, the more leads a company can generate and sell multiple times, the more cash it will rake in. The system is set up to sell leads, not necessarily to match investors with the best advisor for their needs.
How Do Lead Generation Companies Generate Leads?
Lead generation companies typically use aggressive search engine optimization (SEO), pay-per-click (PPC) ad campaigns, and partnerships with content-heavy financial websites to capture potential leads.
By ranking highly for keywords like "financial advisor near me" or "best investment advisor," they get visibility in front of the right audiences when investors search for help. From there, they funnel these leads through forms, quizzes, and questionnaires that promise to match investors with top-rated advisors.
If Lead Gen Companies Can Produce Leads, Why Not Financial Advisors?
If lead generation companies can produce leads for financial advisors, it begs the question—why can't financial advisors generate their own leads? The reality is they absolutely can. Financial advisors possess an inherent advantage in understanding their own services and clientele better than any third-party company could.
Lead-gen companies rely on mass marketing tactics that, while effective at capturing broad interest, lack the personalized touch that financial advisors can apply to their own digital marketing strategies. Advisors know their unique value propositions and can craft more compelling, authentic messages that resonate deeply with their ideal types of clients.
Financial advisors are not just capable of generating leads—they are ideally positioned to do so. By leveraging their expertise, they can speak directly to potential clients’ concerns, goals, and fears in ways that lead-gen companies, with their generic approaches, simply can't.
This direct connection fosters trust, a crucial factor in the decision-making process of investors seeking financial advice. Advisors can customize their marketing content to be more relatable and impactful, attracting higher-quality leads that are more likely to convert.
Moreover, with the rise of digital marketing tools and platforms, financial advisors have never been more empowered to control their lead-generation processes. From search engine optimization (SEO) to content marketing and social media strategies, they can take charge of building their online presence and attracting prospects organically. By investing in their digital footprint, financial advisors can ensure that their marketing strategies align perfectly with their brand, values, and client base, producing leads as effectively—if not more so—than any lead generation company.
Competing With Lead Generation Companies: The David vs. Goliath Scenario
This is the proverbial two-sided coin. On one side, financial firms use various digital marketing practices to generate their own leads. On the other hand, investors are capable of conducting their own searches without any help.
Lead generation companies have deep pockets and love to splash cash on SEO, PPC, and strategic partnerships with financial content platforms. How can independent advisors compete?
1. Visibility Through SEO and SEM
Lead generation companies invest heavily in SEO and SEM and thousands of keywords to make sure they appear at the top of investor search results. However, independent advisors can level the playing field by focusing on local SEO and niche-specific keywords.
SEO Tips:
- Use keywords like “best financial advisor for tech professionals” or “fiduciary advisor in [city]” to rank higher and attract more relevant leads.
- Optimize your website for mobile users to capture the growing segment of investors searching on their phones.
- Make sure your website’s loading speed is fast, as slow websites are penalized by search engines and frustrate potential leads.
- Incorporate long-tail keywords that speak to your specialty, such as “retirement planning for small business owners” or “fee-only advisor in [city].”
- SEM (PPC) Tips:
- Create highly targeted PPC campaigns with localized keywords that help you outbid larger lead-gen companies in your specific region or niche.
- Use negative keywords to filter out searches that are unlikely to convert.
- Ensure your landing pages are optimized to convert visitors from ads, with clear calls-to-action like "Schedule a Free Consultation."
2. Direct Engagement vs.The Middleman
Lead generation companies are like matchmakers, connecting investors with potential advisors. However, independent advisors can bypass the middleman by offering direct ways to engage with potential clients.
Best Practices:
- Offer free consultations, informative webinars, and downloadable resources such as eBooks, checklists, and guides on your website.
- Build, maintain, and add to a blog that is filled with relevant content that answers your audience’s burning questions, showcases your expertise, and improves your SEO rankings.
- Implement drip email campaigns that nurture relationships over time with prospects who may not be ready to commit right away.
3. Transparency and Trust
Investors often don’t know how lead generation companies pick advisors, and some may be skeptical about potential conflicts of interest. For example, some advisors may pay more for lead generation services than others.
DIY advisors have an opportunity to stand out by being transparent and honest. Highlight your fiduciary duty, compensation model, and the value you provide for potential clients. Make sure keywords like “fee-only advisor,” “transparent financial planning,” and “fiduciary responsibility” are prominently featured on your website.
4. Specialization
Lead generation companies tend to offer one-size-fits-all matches for investors with various needs. You can differentiate yourself by focusing on niche markets, such as “financial advisors for doctors” or “retirement planning for teachers.” Specialization isn’t just a buzzword; it’s a way to carve out your own corner of the market.
5. Building Investor Trust with Content
To generate leads organically, independent advisors should focus on content marketing that builds trust and addresses investors' questions. This includes:
- Regularly updating your blog with articles that explain key financial concepts, the importance of transparency, and how to select the right advisor.
- Case studies that demonstrate real-life success stories from your current clients (with their permission).
- Testimonials and client reviews that add social proof to your website.
Investors' Preferences: Lead Generation Companies vs. Independent Advisors
Investors are drawn to lead generation platforms because of their convenience. It’s an easy, streamlined process to find a financial advisor. But here’s the rub—some investors get cold feet once they realize their information is being sold to financial advisors they don’t really know.
1. Ease of Use vs. Personalization
Lead generation platforms offer convenience but can lack the personalized approach that many investors prefer. Independent advisors who emphasize customized financial planning and direct engagement are often more appealing.
2. Transparency vs. The Unknown
Investors often question the objectivity of lead-generation platforms because advisors are paying for their leads. You can position yourself as a more trustworthy option by clearly communicating your fees, services, and fiduciary duty on your website.
3. Relationship Building
Lead generation companies may bring you leads but don’t build relationships. Independent advisors can foster trust through personalized communications, ongoing education, and direct engagement with investors.
Is It Worth the Money for Financial Advisors?
Lead generation companies may generate high volumes of leads, but the quality can vary. Some advisors find that many leads are unqualified, wasting time and creating frustration. Others are unresponsive or don’t meet the advisors’ minimum asset requirements.
By focusing on generating their own leads through content marketing, SEO, advertising, and social media, advisors often find they can generate higher-quality leads and build stronger relationships with clients.
What Is The Downside For Digital Marketing?
The downside of digital marketing for financial advisors starts with the time and effort required to build online visibility. Unlike traditional marketing methods, which may offer more immediate, albeit temporary, results, digital marketing is a long-term strategy. It requires consistent content creation, audience engagement, and optimization efforts.
This can be frustrating for financial advisors who expect quick wins, as results are often slow. Additionally, it can be resource-intensive, particularly for smaller firms that may not have the bandwidth to manage these tasks internally.
Another significant downside is the lack of guaranteed success. Even with a well-executed digital marketing strategy, there are no guarantees that it will lead to a steady stream of new clients or growth in assets under management (AUM).
Financial advisors may invest in SEO, social media campaigns, or paid ads, only to see a minimal return if the market or target audience doesn't respond as anticipated. This uncertainty can make it difficult to justify ongoing marketing expenses, especially when measuring ROI, which can take time and is often hard to pinpoint.
A third and perhaps more nuanced downside is the complexity of compliance. Financial advisors operate in a heavily regulated industry, and promoting their services online adds layers of scrutiny. Each piece of content must be thoroughly vetted to ensure it complies with regulations set by agencies like the SEC and FINRA.
Navigating these compliance issues can be time-consuming and potentially stifle creativity, making it harder to stand out in a crowded digital space. This need for compliance adds another hurdle financial advisors must be willing to consider when committing to digital marketing strategies.
Conclusion: Can Financial Advisors Do Better On Their Own?
So, should financial advisors trust lead generation companies? Maybe, but the bigger question is: Can they do better independently? The answer is a resounding yes. With the right digital marketing strategy, focusing on SEO, content, transparency, and personalized engagement, independent financial advisors can successfully compete with lead generation companies and provide better value to investors.
Financial advisor websites are their most powerful marketing tools. Investing in long-term SEO, organic traffic growth, and direct lead generation strategies will save you money in the long run and help you build a stronger, more meaningful brand with your clients.
