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As advisors enter the world of independence, they can – often for the first time – leverage marketing capabilities to create a unique brand and promote their firm. That said, marketing is multifaceted, with a myriad of tools and an array of digital marketing services to consider.
I’ve pulled together the top five marketing questions I have received from the hundreds of advisors I’ve spoken to who are moving to independence.
1. Can I keep my existing name and branding?
Consider the reasons you chose to break away in the first place. Naming your firm is the perfect opportunity to plant the flag of independence and build your brand from the ground up. From a practical standpoint, existing names are often subsidiaries of the large name-brand firm or broker dealer that you left, so they can’t be ported.
When choosing a new name, go through the correct legal and trademarking process – you don’t want to receive a cease and desist order a few months after launching! Other considerations when choosing a name relate to succession planning and M&A.
2. How will I communicate my new firm’s positioning to clients, prospects and partners?
Defining your firm’s vision and sharing that through effective messaging is vital. You want to carefully review your firm’s values and personality, among other factors, to develop core messaging that will articulate your vision. This can include crafting a welcome letter to existing and new clients; developing PR and social media strategies to build brand awareness; hosting client events to raise awareness; and creating different points of collateral including overview documents, brochures and pitch books.
Messaging must include an outline of expansion and growth plans with point-in-time objectives at six, eight and 12 months.
3. Will I be able to do digital and social marketing?
Digital and social marketing are a critical component of growing every part of your business. These low-cost marketing channels are extremely efficient because they can be highly targeted to the people and businesses that will help build awareness of your brand. Track the metrics that help optimize these campaigns so that they are highly effective for both growing brand awareness as well as generating lead flow. Leads flow into the CRM system where they are nurtured into clients.
4. Do I need to have a dedicated marketing person in my new firm?
If you don’t have someone on your team to do this, partner with a firm that becomes an extension of your firm, providing support in all areas of marketing including brand management, PR and digital marketing. While you don’t necessarily need someone dedicated full-time, it’s highly recommended that you have someone on your team to shape, guide and oversee your firm’s marketing efforts. Responsibilities can include setting strategy, ongoing communications, providing campaign updates and managing editorial calendars.
5 .How much do I need to invest in my marketing efforts?
To determine how much you will need to invest in marketing, differentiate between costs related your firm launch versus ongoing strategic initiatives. Launching your firm is a one-time process to establish your brand. Costs can include creating a website, pitch books, brochures and stationery. Depending on the scope of work and how many partners are required, among other factors, this can be a fixed cost.
Ongoing marketing costs are determined by your business goals and strategies to fuel the growth of AUM. On a macro level, ongoing marketing typically runs 1.5to 3.5% of revenue. Assigning the right metrics will help ensure that your strategies to grow AUM are aligned with your business objectives. Spending should always be tied to a key performance indicators. Work with an outside expert who can determine if an effort won’t help drive growth so that you can decide where not to invest.
From designing a new logo to nurturing new leads, marketing is an exciting and creative part of your business. It will also help drive AUM growth and enterprise value. I have found that proceeding with discipline and structure is the best way to ensure that your marketing strategy is an effective investment over time.
Gordy Abel is the chief marketing officer of Dynasty Financial Partners.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
