Financial advisor prospecting is about building relationships and starting conversations that naturally lead to new clients. Rather than trying to reach everyone, focusing on a well-defined client profile allows for more meaningful connections. Strong referral networks and strategic events can open doors to prospects who are already looking for guidance, while a strong digital presence keeps you visible and credible. Whether through social media, content marketing or direct outreach, successful prospecting happens when advisors consistently engage with the right audience.
SmartAsset’s Advisor Marketing Platform offers financial advisors services like client lead generation, automated marketing and more. Learn about SmartAsset AMP today.
How to Prospect as a Financial Advisor
The first step in prospecting is to create your own client acquisition strategy. This will help you consistently connect with potential clients and grow your business. Incorporating these tips into your plan can help you build a strong foundation to reach out to prospects. Here are the seven things you’ll need to know in order to create that strategy:
1. Know Who You Want to Target
Prospecting works most effectively when you’re concentrating your efforts on your ideal or target clients. If you’re taking the spaghetti approach and throwing things out to see what sticks, you might waste valuable time that could be spent to connect with prospects who fit your ideal client profile.
If you haven’t fleshed out this profile yet, it’s a good idea to give it some thought. For example, do you want to work with clients who are in a specific net worth range? Or are you interested in offering advice to an underserved demographic?
The better you understand whom you want to target—and their specific needs—the easier it becomes to fine-tune your prospecting efforts.
2. Use Your Network
Networking as an advisor can yield certain benefits. The broader your network, the easier it may be to connect with another professional when you need specialized services. For example, if you need to consult with an estate planning attorney to create a financial plan, then someone in your network might be able to refer you.
That, in turn, can benefit you if you’re able to establish reciprocal relationships. For example, you might refer your clients to an estate planning attorney who may in turn refer their clients to you for financial planning services.
Collaborating in this way can allow both of you to grow your business, while ensuring your clients’ needs are met.
3. Tap Into Your Current Client Base
Referrals don’t have to come from other financial professionals; you can also get them from your existing clients. Getting referrals from satisfied clients can reduce your workload when prospecting but you need to give clients a reason to refer you.
The simplest way to generate leads through referrals is by delivering quality services that help your clients meet their goals. Happy clients are more likely to refer others to you, versus clients who feel that they’re just another number. You can also utilize your current client base differently by seeking out prospects among their heirs or beneficiaries.
Say you’re working with a married couple whose adult children are poised to receive a $10 million inheritance from them when they pass away. You might offer to meet with the family to discuss how that will be handled.
That can be an opportunity to subtly introduce your services to the inheritors so that they’re less inclined to move those assets to a different firm after their parents are gone.
4. Go Where Prospects Are
Many prospecting activities can be done online, but they’re not a replacement for meeting with potential clients face-to-face. If you have an opportunity to connect with prospects in person in a neutral environment, it could be well worth your time to do so.
There are different ways you might do this. For example, say that your local chamber of commerce is sponsoring a free workshop on financial planning for seniors. If that’s your target demographic then you might volunteer to lead a discussion on estate planning or Medicare planning, if that aligns with your services.
By putting yourself in front of prospective clients, you have a chance to make a strong first impression. That can be important if your ideal clients place a high value on in-person interactions.
5. Invest in Lead Generation
Prospecting takes time and it can easily make up a significant chunk of your day as a financial advisor. If you’d like to streamline your efforts, then it might make sense to use an automated service for lead generation.
SmartAsset AMP is a subscription-based lead generation and marketing service for fiduciary financial advisors. AMP can deliver up to 540 client referrals per year, as well as automated outreach tools to help advisors connect with and nurture those leads. For example, advisors can create and manage automated outreach campaigns for each new prospect that include personalized emails and text messages.
AMP also integrates with seven different customer relationship management platforms, including Salesforce, HubSpot and Wealthbox, as well as scheduling tools like Calendly and ScheduleOnce.
6. Increase Your Digital Footprint
Digital marketing and content creation can help you to expand your reach well beyond your local area. It can also be a more passive way to attract prospects, as you can create a single piece of content and spin it into multiple forms.
For example, if you have a blog, you could repurpose part of it into an email that you send to your subscriber list or include some of the key takeaways in an Instagram reel or YouTube short. The type of content you create should be designed to appeal to the type of clients you’re hoping to attract. And if you don’t have a social media presence, now may be the time to start building one. Four in 10 advisors say social media has led to converting a client, according to a Broadridge survey of over 400 advisors.
Going back to the first tip, knowing your ideal clients is key when prospecting. Otherwise, you could be wasting time creating content that no one is going to notice.
7. Host Free Events
Hosting events can also be an excellent way to showcase your expertise and connect with potential clients in a more personal setting. Seminars, workshops or webinars on relevant financial topics are all possibilities. These events can be tailored to address the specific interests and concerns of your target market.
For example, you might host a workshop on retirement planning for seniors or a seminar on investment strategies for young professionals. Providing valuable information and insights at these events can establish you as a trusted expert and encourage attendees to seek your services.
The same Broadridge survey of financial advisors found that seven in 10 advisors have gained clients through events that they’ve hosted. When planning events, focus on creating a welcoming and engaging atmosphere. Interactive elements such as Q&A sessions, case studies and group discussions can enhance the experience for attendees.
Understanding the Importance of Prospecting for Financial Advisors
Financial advisors offer financial advice and make recommendations to their clients to help them reach their goals. Successful advisors understand the importance of being able to sell their services to people who need them. Without clients, you don’t have a business. Here are the benefits you should be aware of when it comes to prospecting:
- Ensures business growth: Financial advisors rely on building strong client relationships, but even satisfied clients may not require ongoing services indefinitely. Prospecting helps maintain a consistent flow of new clients, ensuring business continuity and growth.
- Increases revenue: More clients mean more opportunities to provide financial planning, investment management, and other services. By expanding their client base, advisors can increase their revenue potential.
- Enhances market reach: By actively seeking new prospects, advisors can expand their reach beyond their immediate circle, tapping into new demographics and markets that could benefit from their expertise.
- Builds a strong network: A well-planned prospecting strategy allows advisors to connect with potential clients, industry professionals, and referral sources. This network can lead to valuable introductions and long-term partnerships.
While you might have a stable client list, you can never rule out the possibility they will decide to go somewhere else for advice. Regular prospecting can help you to continually acquire new clients so your business can thrive.
Bottom Line
A well-executed prospecting strategy is essential for sustainable business growth as a financial advisor. By understanding how to effectively identify and engage potential clients, you can create a steady pipeline of opportunities that align with your business goals. Your prospecting efforts should be intentional, targeting the right audience based on their financial needs and your areas of expertise. By tailoring your approach – whether through referrals, networking, digital marketing or direct outreach – you can establish meaningful connections with clients who are the best fit for your services.
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.
- Having a strong web presence for your firm can help you garner attention and credibility that you might not otherwise. Check out our guide to financial advisor websites to learn more.
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