While 2023 was a tough year in many respects, the onward and upward market performance was a welcome improvement. It’s nice to see strong market gains and assets under management soar, isn’t it? What lies ahead is yet to be determined, but if you’re an advisor looking to grow, there are always things you can do that are within your control.
Here are three growth activities that can jump-start your new year and bring you great results for years to come.
It always surprises me that so many advisors spend time, money and energy on marketing and branding to people they don’t want as clients. I see vague descriptions and generic services listed all the time. And before you start to think, "Not me,” it’s important to ensure that your “personal approach to wealth management” or “comprehensive wealth management” bullet points provide enough clarity to your prospects.
Knowing your ideal clients lets you articulate your value proposition to them in a way that will resonate. Over time, your brand will build, and you’ll attract relevant clients rather than chasing them. One advisor I work with specializes in executive compensation and the complicated tax issues that arise from exercising stock options. His clear-cut message and consistent, tailored branding allow him to attract senior executives from all over the country, not just his locale.
Let’s be clear: when speaking with a client, your goal isn’t simply to get the name of someone who could be a good fit for your services. Your goal is to have the client introduce you to the prospect, which is quite different. Ask for what you want! If a client mentions a friend or colleague with a similar financial challenge, don’t immediately ask them for a name. Instead, ask them strategic questions about the prospect with the intent of learning more. What’s going on in the prospects’ lives that could be improved by working with you? Did something recently change that requires some attention or urgency?
Too many advisors rush to get a name – but then what? It can be awkward to know how to proceed if you haven’t been permitted to follow up or use the client’s name. Your goal is to close the distance between learning about the prospects and meeting them, and have actionable steps you can take. An example could be, “It sounds like your colleague is also facing a key decision about whether to take the early retirement package offered. Why don’t we all meet for coffee one morning before work, and you can introduce me? I’d be happy to help your friend carefully analyze the package and make the best decision.”
Many advisors have excellent working relationships with CPAs and tax professionals in their area. This network is beneficial, as tax professionals see the numbers and are in a great position to identify folks with the assets and income to qualify for your services. For many of the same reasons, estate planning attorneys can make great centers of influence. But they may receive pitches from financial advisors regularly and may be tapped out or uninterested in forming new relationships. If this is the case, what can you do?
While we all know how vital COI referrals are, only 35% of advisors say they’ve developed a strong COI network that provides them with leads and referrals, according to Fidelity Investments. Clearly, more can be done to enhance these all-important relationships in 2024. If CPAs and attorneys aren’t working well for you, look for alternatives. Many other professionals, such as high-end home realtors, mortgage and commercial lenders, and marina operators, can also offer you introductions to great prospects for your business.
As the new year begins, it’s beneficial to challenge yourself – and your practice – and set strategic goals for the future. And if you start 2024 off strong and focus on these three growth activities, you will have a lot to celebrate over the course of the year!
Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
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