Marketing is an essential business expense if you hope to grow your advisory firm. Without a marketing plan, you may put yourself at a disadvantage when it comes to attracting new clients. But how much should you spend to promote your business? Your financial advisor marketing budget can depend on different factors, including the size of your firm and the marketing channels you plan to target.
SmartAsset’s Advisor Marketing Platform offers financial advisors services like client lead generation, automated marketing and more. Learn about SmartAsset AMP today.
What Is a Typical Financial Advisor Marketing Budget?
The average advisor spent $15,908 on marketing in 2024, according to an in-depth survey conducted by Broadridge. That same survey found that advisory teams spent an average of approximately $23,200 on marketing, while solo advisors spent just under $9,000.
In terms of how that breaks down on an individual client basis, the advisors who were surveyed onboarded an average of 15 new clients per year, spending $609 in marketing dollars to acquire each one. However, the survey found that advisors with a “defined marketing strategy” added 50% more clients in than advisors without a clear marketing plan (21 vs. 14).
Looking ahead, 31% of advisors surveyed said they planned to increase their marketing budget in the next 12 months, while the majority of respondents said they planned to keep their marketing spend flat.
Hot to Set a Marketing Budget as a Financial Advisor
There’s no one-size-fits-all formula for determining how much financial advisors should allocate towards their marketing plan. However, a common guideline is to set your budget as a percentage of annual revenue, typically between 1% and 10%. That means if your firm generates $1 million in revenue annually, you may budget anywhere from $10,000 to $100,000 for marketing. While this method provides a starting point, there are several factors to consider when determining the right budget for your business.
1. Choose Between a Percentage or Fixed Budget
Using a percentage-based budget works well for established firms with predictable revenue, but newer advisors with little to no revenue may need a different approach. If you’re just starting out, it may be more practical to allocate a fixed dollar amount based on what you can realistically afford. Setting an initial marketing budget — rather than relying on a percentage of revenue — ensures you can still invest in growth without overextending your finances.
2. Consider Your Potential Return on Investment (ROI)
Not all marketing strategies yield the same results, and some approaches may provide a higher ROI than others. If you have a limited budget, it’s essential to be strategic about where you allocate funds. Investing in targeted, high-impact strategies — such as digital advertising, content marketing or networking events — can help maximize your returns.
3. Track and Measure Your Marketing Performance
A surprising number of financial advisors don’t track the success of their marketing efforts. To avoid wasting money on ineffective strategies, establish clear performance metrics. Use analytics tools, client acquisition data and conversion rates to measure which tactics provide the best results. This data will help you adjust your budget over time and refine your marketing approach.
4. Avoid Spending for the Sake of Spending
And just because a formula suggests a certain budget, doesn’t mean you need to spend every dollar, either. If your calculations recommend a $50,000 marketing budget, don’t assume that spending the full amount will automatically generate new business. Instead, focus on allocating funds where they are most likely to generate measurable growth.
5. Pace Your Marketing Spend
Rather than spending your entire budget upfront, consider spreading it out over time. This approach allows you to test different strategies, refine what works and scale up successful campaigns. Jumping in too aggressively on one or two tactics may backfire if they don’t deliver the expected results. By pacing your spending, you can optimize your marketing efforts and improve your long-term growth strategy.
Using Lead Generation Services to Market Your Business
One strategy some investors prioritize is lead generation. Lead generation services can simplify marketing as an advisor by cutting out all the noise and allowing you to make a more direct connection with prospective clients. There’s a lot of debate, however, around whether it makes sense to allocate part of your marketing budget to lead generation, as some services are better than others.
SmartAsset AMP (Advisor Marketing Platform) is an end-to-end marketing solution that can deliver up to 540 client referrals per year, depending on the package you choose. However, the service doesn’t stop there. AMP features a variety of automated outreach tools, including automatic emails, calls and texts. In fact, as soon as a referral is received, AMP can initiate an outreach campaign customized for each specific lead.
Lee Fortenberry, financial advisor and managing director of Financial Growth Partners, first “looks at the lead in the system to see what stage of the game they’re in. Most of my people are either already retired or they’re less than 10 years out.” He can then assign the lead one of his two standard email templates in the system depending on what’s most appropriate.
When considering lead gen services, it’s also helpful to weigh how much revenue each new lead you acquire might generate if you’re able to convert them into a longstanding client. For example, if you generate $40,000 from leads that you spent $10,000 to acquire, you’re getting a 300% return. What constitutes a good ROI for lead generation is subjective, as every advisor may view it differently. Setting specific goals or targets and tracking ROI consistently can give you a better idea of how much value you’re getting from lead generation.
What to Include in a Financial Advisor Marketing Budget
There are a variety of ways to market yourself as an advisor, many of which require some investment of money. If you’ve decided how much you can realistically spend on marketing, the next step is deciding how to allocate those dollars to both online and offline tactics.
Some of the most popular (and highest ROI) ways to market yourself online as an advisor include:
- Building a following on social media
- Running digital ads on Facebook, Google or LinkedIn
- Having a professional website
- Publishing SEO content on your blog or someone else’s
- Local SEO
- Being a guest on financial podcasts (or starting a podcast of your own)
- Public relations outreach
- Email marketing
Marketing offline may involve setting up a direct mail marketing campaign, participating in community events, or running print and TV ads on local channels.
Which marketing efforts are most effective for you can depend on how well you know your ideal client. You may craft a perfect marketing message, but it may have little value for your business if it’s not reaching the right people.
One of the first and most basic rules of financial advisor marketing is to know your client and your niche. Ask yourself the following:
- Where does my ideal client tend to spend their time online?
- What’s their preferred method for consuming content?
- What type of messaging is most likely to resonate with them, based on their financial needs, challenges and goals?
You may have to do some research to determine where to target your messaging. One way to do that is by polling your existing clients to ask them about their marketing preferences and which social media channels they use most often. That can give you a starting point for shaping your marketing plan and budget.
Bottom Line
Setting a financial advisor marketing budget can give you a framework for deciding how much to spend, but it’s also important to consider which areas of focus are likely to offer the biggest payback. Remember that developing a marketing strategy is often an ongoing process as you may need to try out different methods to find a groove that works best for your business.
Tips for Growing Your Advisory Business
- SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
- You may be focused on marketing your business online but don’t underestimate the power of offline marketing tactics. Referrals, for instance, can help you build a more sustainable business if your existing clients regularly recommend you to their friends, family members or coworkers. The key to generating more referrals is providing superior service to your existing clients and showing your appreciation by hosting special client events.
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