Financial Advisor Lead Generation Strategies and Tips

Success as a financial advisor requires balancing two key priorities: serving your existing clients and consistently generating new leads. With numerous lead generation strategies available, you may already be investing time and money in various approaches to attract prospects. To maximize your efforts, it’s important to ensure a strong return on investment. By incorporating effective lead generation and client acquisition strategies into your approach, you can build a steady pipeline of potential clients and help sustain long-term growth.

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Strategy #1: Build Your Client Referral Network

Although widely used, one of the most powerful lead-generation strategies available to advisors is client referrals. Encouraging satisfied clients to refer their friends and family can be an easy and effective way to expand your advisory business — particularly when targeting high-net-worth individuals. If you already work with wealthy clients, leveraging their network can help you secure valuable introductions without the high cost of traditional marketing efforts.

“Clients have busy lives and even though they like you, it may not occur to them that you’re looking for new prospects,” says Alvin Carlos, a Certified Financial Planner™ (CFP®) and managing partner at Washington, D.C.-based District Capital Management. “Tell them you’re looking to help 10 new clients this year, and you’d rather help those that are important to them.”

This approach enables you to strengthen relationships with your current clients by showing that you care about the people important to them. It also fosters an ongoing cycle of lead generation, as new clients may continue to refer others to your business.

Asking for referrals can be as simple as including a mention in your regular email newsletter. If you’re not yet leveraging email to stay connected with current or potential clients, it’s a valuable tool worth exploring for lead generation and client engagement.

Strategy #2: Use Professional Lead Generation Services

Lead generation for financial advisors involves many moving parts, but specialized networks and companies can streamline the process. Client lead generation services help automate the task of attracting potential clients, saving you valuable time. This allows you to focus more on providing exceptional service to your existing clients while growing your practice .

SmartAsset AMP, for instance, supplies you with client leads. By signing up, you can effectively put lead generation on autopilot. Once investor leads are ready to move forward, you’ll shift your focus to closing them. Through AMP, advisors can leverage automated and compliant text message outreach campaigns, CRM integrations and automated email nurture campaigns. You could even be connected live with potential clients so you have a more direct impact on the process.

You can also take advantage of lead generation services as a member of the National Association of Personal Financial Advisors (NAPFA), says Carlos. To join, you do need to be a fee-only financial advisor. But he says “the biggest cost is the 60 hours of continuing education credit you need to maintain.”

Strategy #3: Take Advantage of Social Media

Social media can be an integral part of an advisor’s marketing and lead generation plan. After all, this may be the first contact a prospective client has with your advisory business. While this method is more complex than the utilization of lead generation services, the organic growth it can sustain is also valuable.

Establishing a presence on social media matters, but consider how that time is spent. Paul Sundin, certified public accountant (CPA), tax strategist and CEO of Emparion in Chandler, Arizona, says it’s important to go beyond the basics of just creating profiles or making an offer.

“To have effective lead generation as a financial advisor, you need to do market research,” Sundin says. Specifically, it’s important to research the patterns that entice your target market, he noted. Social media can be an invaluable tool for that.

A 2024 Broadridge survey of over 400 financial advisors found that four in 10 have added new clients through social media, with LinkedIn and Facebook being the channels where they’ve found the most success..

“Search for customer reviews, activities on different social media platforms and overall social media behavior,” he added. “Once you see the pattern for the keywords that entices them, use the keywords in your copy and content.”

This, Sundin says, can be a recipe for driving the right people to your advisor website.

Strategy #4: Establish Trust by Providing Value

In financial advisor marketing, and marketing in general, one of the most common and effective lead-generation strategies is offering something for free, such as a lead magnet.

It’s actually a simple concept: You give prospects something either useful or necessary, absolutely free. This then acts as a precursor to converting them into a paying client.

If your advisory business has an associated website and blog, for example, this can come in the form of a report or worksheet that answers a question or solves a problem for prospects. This is a strategy that Shawn Plummer, CEO of The Annuity Expert, has successfully used to capture an audience and generate clients through his website.

“I leverage my expertise on annuities and insurance to educate visitors, provide thought leadership and position myself as an expert,” Plummer says. “This increases the trust I have with my visitors, which in turn increases the likelihood that they may reach out for a quote.”

If you don’t have a free offering, consider what you can do to create one. This could mean establishing a blog, but it could also involve the creation of a free podcast or webinar. The goal is to identify what potential leads are looking for, and what answers or solutions you’re able to provide.

Tips for Converting Your Leads Into Clients

Generating leads is just the first step — turning a prospect into a client is the ultimate goal. Successfully guiding leads through the sales process requires advisors to use a diverse set of skills and strategies.

Tip #1: Demonstrate Understanding

Understanding a person’s unique needs – and demonstrating that you’re listening – can go a long way toward building trust with prospective clients, says Carla T. Adams, founder of Ametrine Wealth in Lake Orion, Michigan. 

“We as advisors (and actually humans in general) are so keen to talk about ourselves and show off what we have to offer. When a prospect gives you an overview of their situation and you jump right in to tell them what you can do for them, it is actually often off-putting,” Adams said. “It takes people time to open up and talk about what’s really important to them, so give them the time and space to open up.”

Tip #2: Don’t Forget to Follow Up

Not all prospects are going to sign on as clients after an initial meeting – and that’s okay. While persistence is vital for converting leads, it’s important to follow up strategically by using a combination of phone calls, emails, text messages and more. You don’t want to overdo it though, so knowing when to follow up and when to give space is crucial.

Tip #3: Assess Your Conversion Rate

An advisor’s conversion rate will vary based on their target market, niche and sales process, according to Michael Collins, founder and CEO of WinCap Financial in Winchester, Massachusetts. However, Collins recommends aiming to add between 10 to 15 new clients per year, achieving a conversion rate of 10% to 20%. At those rates, that means you would need to generate between 100 and 150 leads each year.

“However, it’s important to note that quality is more important than quantity. It’s better to have a smaller number of high-quality leads than a large number of unqualified ones,” Collins added. “As advisors, our focus should be on attracting the right clients who align with our niche and values.”

In fact, Adams thinks advisors shouldn’t be afraid to turn away leads that may not be the best fit for you, even if they have high revenue potential.

“Having clients that create too much stress and negative energy are a distraction from properly servicing your other clients and from seeking out new business that will better align with your values and keep your work enjoyable,” says Adams.

Bottom Line

Finding new leads can seem daunting, but it doesn’t have to be. By utilizing some basic, yet powerful, strategies, you can keep a steady stream of leads coming in. Keep in mind that you may need to allow for some trial and error to figure out what’s working and what’s not. As you continue to seek out new leads, remember to stay open to new ideas and opportunities for connecting with your ideal clients. There are numerous things you can do such as hiring a marketing agency or finding more marketing automation successes.

More Tips for Lead Generation

• Automate your lead generation. 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.
• Don’t limit yourself to local searches. Many financial advisors rarely look for prospects outside of a short drive from their home or office. But 60% of prospects who completed a survey with SmartAsset indicated that they were willing to work with an advisor remotely. If you’re only looking for prospects locally you could be costing yourself leads without realizing it. Consider broadening your search and working with investors who are more comfortable with less frequent in-person meetings.

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