For financial advisors, networking is a powerful tool for expanding your professional connections and reaching potential clients. You’ve probably heard the saying, “It’s who you know, not what you know.” And there’s truth to that — strategic connections can open valuable doors. Mastering the art of networking can play a crucial role in growing your advisory business and building long-term success.
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How to Network as a Financial Advisor
There are different ways to expand your professional network, and some may be more attractive than others. Before you get too far along in the process, it helps to consider what your goals are for networking. That can determine where you focus your time and energy.
The following are some of the best options for networking as a financial advisor for you to choose from.
1. Join a Professional Association
Professional associations can be a great place to start with networking, as they may facilitate connections between members. The National Association of Personal Financial Advisors (NAPFA), for example, has a Community feature that allows member advisors to join in open discussions. Advisors can also network in person at NAPFA’s annual spring and fall conference events.
You can also look for local associations to join that are specific to your area. That can include professional associations as well as community associations, such as a Rotary Club or Kiwanis Club chapter. These types of associations can provide opportunities for networking as well as a chance to give back to your community.
2. Participate in Community Events
Local events may yield opportunities to meet other advisors or increase your visibility in the community. There may be an advisor meetup group you could join that gets together for networking once a month, for instance. Or you may attend a local small business fair sponsored by the Chamber of Commerce.
If those types of events are few and far between in your area, you could take the lead and create one yourself. For example, you might establish a meetup group and invite other financial advisors in a similar niche. Or you may approach the chamber of commerce or a local college about hosting a free financial workshop that’s targeted toward your ideal client.
3. Don’t Neglect Social Media
Social media and digital marketing can be powerful tools for networking and elevating your advisory business. LinkedIn, for example, can be an excellent resource for building professional connections with advisors and other individuals in the finance industry.
You can also use social media to network with prospective clients informally. For example, if your target audience spends a lot of time on TikTok, it might be worth your while to learn how to make short clips that are packed with valuable tips. Or you might opt to spend time on Twitter or YouTube if that’s where the followers you’d most like to attract hang out.
4. Meet Regularly With Other Financial Advisors
Most financial advisors don’t work with just anyone who reaches out — they typically look for clients who meet specific criteria. This may include the amount of investable assets, preferred investment strategies or even the client’s life stage.
Connecting with advisors who specialize in different areas can be mutually beneficial. By referring clients to one another, you can expand your network and attract new business. These professional relationships can also become a valuable source of leads and local support as you collaborate with like-minded peers.
5. Stay in Touch With Recruiters in the Industry
If you’re looking to rapidly grow your firm, networking with executive recruiters who specialize in the financial industry can be a valuable opportunity. These professionals have insider knowledge and insight into advisor movement. This can give you an edge when it’s time to hire new talent to support your growth.
Stay connected by scheduling informal check-ins every few months, even when you’re not actively hiring. When you are recruiting, increase the frequency of those meetings. Hosting a casual breakfast or coffee meeting is a great way to discuss industry trends and stay informed about who might be looking to make a move.
Other Types of Lead Generation
If you find that your networking opportunities aren’t producing enough leads to grow at the rate you desire, you may want to try adding another type of lead generation. For example, online lead generation could provide you with a steady flow of potential clients to supplement your networking efforts.
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Tips for Networking as a Financial Advisor
Knowing where to position yourself for networking is important, but that’s only part of the equation. If you want to know how to network as a financial advisor successfully, here are a few additional tips to keep in mind.
Ask Questions
When you meet someone new, that person is essentially a blank page. Asking questions can help you to fill in the blanks. The best kinds of questions to ask are ones that leave room for an open-ended answer versus a simple ‘yes’ or ‘no’. That can make it easier to keep the conversation going and develop a back-and-forth discussion.
Listen
Once you start asking questions, take time to listen to the answers and absorb what the other person is saying. That can give you insight into their thought patterns and guide you as to what questions to ask next. And if they’re the ones asking the questions, try to answer without rambling or going too far off-topic.
Have a Pitch Ready
You will want to have a quick pitch ready that you can deliver on a moment’s notice once you’ve spent some time with others. You’ll want to sound casual while getting across your point and gaining interest in your firm or services, or a potential partnership. Your pitch should include a quick overview of what you do, who you serve and how you can help the person you’re speaking with.
Be a Facilitator
Networking isn’t a one-way street. And it’s possible that you might be in a position to make an introduction for someone else. Doing so could help you get in the good books of both parties. The key is to make sure the connection is a good one and that both people will benefit from becoming acquainted with the other. If one party ends up dissatisfied, that could reflect negatively on you.
Follow Up
Once you make a new connection you’ll need to do a little more work to maintain it. That might be as simple as a monthly phone call or email just to say hello. And if someone you’ve networked with reaches out to you, don’t leave them hanging. It can be as simple as keeping an email reply short and sweet. Or having a quick 5-minute chat to let that person know you haven’t forgotten about them.
Once you’ve put in all of this work to help you network, make sure you have an end goal in mind. Say you want to gain more client leads. Then you need to develop a good strategy for asking for those leads at some point in the relationship. The more you network, the better you can become at closing the deal on your end goal.
Why Is Networking Important for Financial Advisors?
Your network can be a pipeline for opportunities. And if you’re not tending it regularly, it could be at risk of running dry. Networking can help you establish your reputation in the finance space, which may be helpful if you’re looking for opportunities to advance your career. It’s also easier to position yourself as an expert in your specific niche if your name is recognizable to other advisors or industry leaders.
If you’re new to the advisory space, networking can be a good way to find a mentor if that’s something you’re looking for. A mentor can be invaluable if they’re willing to offer guidance and advice as you work on building your business. The larger your professional circle, the greater the possibility of connecting with someone who may be comfortable assuming that role.
Networking is also a chance to meet with prospective clients in an informal setting. You may be leveraging digital marketing and social media to promote your business, but networking events can bring you face-to-face. That’s a chance for you to showcase what it is that makes you and your business unique.
Bottom Line
Networking plays a key role in your success as an advisor and in growing your business. There’s no single right way to build a strong network. Try different strategies to see what works best for you. What drives results for one advisor may not work for another. Your ideal approach may depend on your location, niche or personal style. Focus on what feels authentic and brings the greatest return.
Financial Advisor Marketing Tips
- 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.
- Vet prospects online. If you don’t have a lot of time to focus on networking, there’s a simpler solution. You could use a service that connects you directly with prospective clients online. SmartAdvisor, our lead generation platform, allows you to connect with local prospects directly. You pay only for investors that fit your ideal client profile, saving your business money and time.
- Expand your digital footprint. More people are increasingly turning to search engines to find financial advisors to work with. If you’re not leveraging the power of search yet with a website, blog or social media, using an online lead generation service like SmartAsset can help you scale your business as you work on establishing your online presence.
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