Here’s the big misconception…
Financial advisers = Good marketers
It is not that that are not interested in marketing.
Or that they do not know it’s importance to their business.
It is just that they are highly trained in providing financial advice, maintaining compliance as a regulated entity and looking after their clients.
So marketing their business in a systematic way is low down on the list.
Let’s look at the 4 biggest mistakes that financial advisers make.
1) Buying leads
There are many online companies and direct marketers that will sell financial services leads to the highest bidder. Generally these leads cost £80-100+. I have spoken to dozens of advisers who have used this method to get leads. But normally the experience is very high effort for very low result. Meaning that they had to dig through 100 leads in a month to find maybe 1 that may be of value.
You see the problem is that these companies put very basic ads up on social media in a very scatter gun kind of way. (Click here to consolidate your pension etc) Unsuspecting people click on the ads and put in some of their personal details – name, phone number, email. In a lot of cases they are not aware of what they have just given details for. Then they get a call from an adviser and wonder how you got their details, or expect free advice on their finances.
I call this sledgehammer marketing.
It is a totally unsustainable way to consistently grow your practice. It is a poor use of your time as an adviser digging through all the unqualified leads, hoping for some gold.
How many high net worth individuals that you know would respond to an ad like this?
2) Relying solely on referrals
Referrals are great!
They are definitely one of the best ways to grow your financial advisory business. When you get a referral, your ability to close that prospect goes up exponentially. They already know, like and trust one of your clients. So in turn this level of trust transfers to you and your business.
But there is a huge problem. They are inconsistent and unpredictable in their numbers. One month you may get many, the next 3-6 months you get none at all.
Thousands of financial advisers rely solely on referrals for their business growth. Hoping and praying that they may get a few referrals this month to help them reach their targets and business goals.
“Hope marketing” is no way to consistently grow your financial practice.
3) Allowing their book profile to become too old
As financial advisers the profile of your overall book is very important. Whether you started a book from scratch, inherited (or bought) a book or you have spent the last 20 years building it – does not matter.
The vital thing is the profile of your book.
All advisers have one eye on their ability to sell their book of business when they decide to retire or cease being in the financial services industry. It is an asset that can be very profitable for an adviser.
But the key is in the profile of people who are in the book. If the profile is very old, the book resale value decreases significantly.
Why? There may be limited time left to gain significant income from the book.
This happens when advisers get complacent (Lazy) with the growth of their book. They stop marketing or adding to it, and just live off the residual income. Assuming it will just work itself out.
No one would deliberately reduce the value of their home as an asset, so why would advisers be very passive and allow their book to become worthless?
4) Not keeping up with technology trends
More than 10 years ago the first iPhone was produced and released to the market.
It was the first extremely user friendly smart phone to be available.
It was a game changer.
Now mobile searches greatly exceed desktop searches. Mobile data packages are fast and cheap. Everyone has a smart phone with them at all times, with access to email, internet and social media 24/7.
So the landscape for financial advisers has changed. The old school marketing methods that used to work like:
- Friends & Family
- Networking Events
- Mail/flyer drops
- Print ads etc
Just do not cut it any longer. Prospects expect to find you online. With a good quality website, great content and engaging social media profiles.
But many advisers are getting left behind by this shift to technology. A lot of the time it is because of their own fear of embracing technology themselves.
From a marketing point of view it makes your potential prospects much easier to reach. They are always available on their smart phone.
You just need to know how to get your message in front of them.
The key is to put in place a predictable and consistent online marketing system, that drives targeted high value leads into your business every single month.
Here at Thompson Consulting we provide exactly that kind of system. Click below to check out how the proven system actually works and how you can get 3-5 high value leads per week.