Top 10 lead generation tips for financial advisors

Most financial advisors have difficulty generating consistent leads. The main reason is that they do not use the right strategies. In most cases, they use old strategies that are no longer very effective in the modern world. These old, outdated strategies include cold-calling, direct mail and advertisements in newspapers or magazines.
Financial advisors can achieve some results with these archaic tactics, but they are neither cost- nor time-efficient. If you ask top financial advisors, none of them will tell you that the above strategies are among their most effective lead generation strategies. Although they still have some potential, they should not be the preferred method of lead generation.

Overrated Strategies

Below we briefly explain why some of the most common strategies are not effective:

  • Cold calls: financial advisors receive a lot of negative feedback on cold calls. When combined with a low success rate, this leads to frustration and potential burnout.
  • Direct mail: most recipients consider it junk mail. Moreover, it does not target a specific audience, which leads to a very low conversion rate.
  • Advertising in newspapers and magazines: Again, this does not target a specific audience, unless you place advertisements in niche publications. This is also one of the least effective methods to reach high net worth investors.

To do

Knowing what not to do is just as important as knowing what to do. If you use the wrong strategies, your business will not succeed, especially if your competitors use the right strategies. The biggest mistake financial advisors make when it comes to generating leads is to spend too much time on it.
It may sound like nonsense, but your time is valuable, so autoresponders are essential. You must also always be available on the phone, even during your lunch break. Most potential customers call during their lunch break, which is also your lunch break. If you are not available, your chances of getting an appointment decrease.
An even more important note, perhaps the most important, is that most financial advisors do not spend enough time communicating and building relationships with current clients. This is an absolute necessity. By staying in touch, you show that you care and that you are not just a salesman. In addition, you increase the number of contacts you receive through referrals.

Underestimated Strategies

Generating leads is easier than you might think. Just familiarise yourself with the most effective methods of the moment. Here is a brief overview of 10 very effective lead generation strategies:

  • LinkedIn: you can use the ‘Network’ tab to sort and filter contacts and send a simple message (perhaps with investment or money management advice) to former colleagues and local business leaders. You can use the ‘Home’ tab to inform potential customers of their professional successes or to like their content. In the ‘Advanced’ tab, you can use mutual connections to socialise. Another important note: LinkedIn attracts many people with high net worth.
  • Word of mouth: this is an expected phenomenon over which you may think you have no control, but if you demonstrate to your current customers that you have the four Cs (Credible, Attentive, Collaborative, Chemistry), your chances of getting customer referrals skyrocket.
  • Dinner seminars: Don’t be stingy in your choice of restaurant and only invite a few potential customers. This method of generating leads can be expensive, but the return on investment (ROI) should be excellent if done correctly. You could generate more than 50 high-quality potential customers in less than two months.
  • Training workshops: A cheaper alternative to dinner seminars. Most people prefer workshops to face-to-face sales meetings because they take place in an environment where the potential client is not under pressure.
  • Leadership groups: These groups often meet once a week and exchange highly qualified leads. However, these are usually business people from different sectors, so you do not have to worry about competition.
  • Free reports: by mail, e-mail or otherwise, everyone is interested in free reports. If what they read is to their liking and your contact information is available, don’t be surprised if you get a great response.
  • Community networking: this takes a bit more time, as trust needs to be built first. Participating in community events can be very helpful if you are consistent, especially if you sponsor them and build a brand in the area. You can also participate in local radio, TV programmes and podcasts to help build your brand.
  • Facebook: This platform is becoming increasingly popular and helps build and consolidate relationships over time. Financial advisors can also take advantage of Facebook Events, which can notify users of upcoming events.
  • Google Ads: These can be expensive depending on your budget, so make sure your ads are highly targeted.
  • Newspaper articles: This is different from newspaper ads. If you have a local newspaper, contact them and ask them to write an article about your speciality. If you get the go-ahead, you will soon be recognised as an authority in your community. In this case, you will no longer need to look for potential customers. They will come to you.

Exceptional potential

Contrary to what one may hear or read, there has never been a better time in history to become a financial advisor. In the next 15 years, an average of 10,000 baby boomers will retire every day.
Most of them still haven’t figured out how to plan their retirement, partly because they don’t think they have enough money to do so.
If you think you can help new retirees and adult children take care of their parents’ finances, be sure to formulate a sales funnel for this market. To simplify, you should use a three-step process: Contact generation, relationship building and closing and selling. Modify the sub-processes after realising which are the most and least effective.
Financial advisors have the opportunity to take advantage of the largest generation in history that is retiring en masse. Old lead generation strategies should not be excluded, but neither should they be the focus any longer.

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