It was one hell of a gift basket, piled high with an assortment of treats and trinkets. Not unusual for the holiday season, except it came from my financial planner.
First gift ever. The crux of most financial planner marketing.
Apparently, the stock market’s spiraling decline inspired her to do a little preemptive marketing.
Like most small, professional service firms, her marketing efforts are inversely related to her current cash flow. When the markets are up and she’s riding high, her marketing expenses are low. She’s too busy — and content— to worry about it. When things are tough, it’s time to turn on the charm. It’s human nature.
Unfortunately, her current clients see the effort for what it is. (Just buttering us up for the bad news to come.) And new prospects aren’t swayed because her personal brand isn’t strong enough to weather the whims of Wall Street.
Her brand has no credibility right now. No differentiation. And little visibility. The only good thing you can say is she didn’t work for WaMu or one of the big investments banks.
Here’s an example of the typical marketing plan for an independent financial advisor.
• Monthly Chamber of Commerce breakfast meeting.
• Christmas card to all clients. (Gift baskets are typically reserved for only the top three or four clients.)
• One-page, off-the shelf website, never to be touched once it’s up.
• Annual guest speaker luncheon. (Bring in a so-called “expert” spokesperson, book a room at a local hotel, cater lunch and then bore us to tears. If I wanted to know all that stuff, I’d do my own trading.)
It’s more of a tactical to-do list than an actual marketing plan. In the past it might have worked. She could get by on her good looks and good news from a bull market.
Not any more.
Compensation for independent financial advisors is typically based either on a flat fee, or on a percentage of the total assets under management (AUM). If it’s $100 million of other people’s money, they typically make 1% of that. A million bucks gross. The problem is, they’ve all seen a 30-40% drop in AUM, so they’re scrambling to find new clients.
Most are just ratcheting-up their networking efforts, hoping for more word-of-mouth. But some have discovered a new, more lucrative pipeline: Internet-based lead generation services.
It’s pretty simple. Advisors sign up with an independent web directory and they pay only for highly qualified referrals. Very little effort for financial advisors. Very big ROI.
Independent, third-party directories also fill a vital role for consumers: They help simplify the search and match prospects with a financial advisor who fits. It’s a vexing decision, choosing someone to handle your life savings. And most financial advisor web sites have the same, stock-photo look, and the same brochure-style copy.
On-line directories have been done successfully in the education market, travel, real estate, and the auto industry. So why not financial advisors?
When prospects go on line to research “financial advisors” they begin with Google. But Google can’t sort or organize the category in a helpful way. That’s where directories come in… they categorize advisors, provide details on specific services and nudge prospects along in the decision making process. So independent advisors get a steady stream of very qualified leads and search engine optimization they could never achieve on their own.
In this day and age, having a web presence beyond just a static website is a marketing no-brainer. If you really are an expert financial planner, share your knowledge by writing a blog. Create a Facebook page. Join a social network like Linked In or Triiibes. Establish a presence for you and your personal brand in places where your direct competitors aren’t. Do something, ANYTHING, that’s different from what you’ve always done.
Most professionals who run small service businesses believe networking is enough. But that’s not the case right now for financial advisors. There’s no gift basket big enough for the job ahead. It’s time to start employing some new marketing tactics.
If you want an idea that will dramatically differentiate you from all the other hungry advisors and help you retain clients without the use of lavish gifts, send me an e-mail: firstname.lastname@example.org.
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