As the financial advisor industry’s ‘marketing guru,‘ I want to give you two accurate bits of advice regarding advertising.
Practical Advertising Advice for the Financial Advisor
First, given the choice of a subscription to a service, between one which didn’t cost anything and one which cost $500, $750, or $1,000, I will most often take the free one.
Second, every financial advisor must put a lot of time and energy into all phases of marketing their practice. Financial advisors should budget 12-15% of the target gross revenue on the effort. When done properly, there are effective television, radio, direct mail, and print media opportunities that work consistently.
The gurus who tell you advertising doesn’t work, don’t know how to make it work. A strong practice should generate 50% or more of its leads for new clients from internal and ‘grass-roots’ efforts. Consequently, financial advisors shouldn’t have to completely rely on paid advertising for new clients.
Deciding What Kind of Advertising to Use
You should realize your marketing efforts flow through a grid which includes labor that is:
- Intensive and relatively inexpensive
- Expensive and relatively little effort required
If you have a small practice especially, then you must concentrate first and foremost on the marketing methods that require effort, but relatively little money. As you grow, you placing an increasing emphasis on ‘buying intros’ makes more and more sense.
It is difficult to grow your financial practice while you are solely absorbed with serving your existing clients and merely hoping for growth. In almost all cases, it never happens because the marketing efforts require either time or money. Without both, you are left with few options or opportunities.
Our team would be happy to do a free practice evaluation and give you a fresh perspective on your marketing efforts and growing your client base. Click here to schedule your free evaluation.