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I’ve coached many advisors over the years and spoken to thousands of others. Here’s what I’ve learned. My observations are anecdotal and not the result of a scientific study.
“Success” is elusive
Initially, it’s important to define what’s meant by “successful.” Most advisors seem to have AUM in the $50 million-$250 million range. If that generates enough income to support your business and give you the quality of life you seek, then you should be considered “successful.”
For this article, I’m going to define “successful” arbitrarily to include only firms with over $500 million AUM.
How did they do it?
Here’s what I’ve observed.
They have a niche
In my experience, successful advisors (as I have defined that term) most often have a niche. They don’t try to appeal to everyone. They aren’t concerned about alienating potential clients who aren’t in their target demographic.
Often, they have multiple niches, which may seem counterintuitive. For example, an advisory firm that focuses on health care professionals may also serve technology executives, even though there’s no connection between those demographics.
Sometimes, the additional niches come about organically. If their core niche is technology executives, those clients may refer non-technology executives, permitting the advisory firm to develop an additional expertise.
They make an emotional connection
When my marketing consulting firm is retained by a firm with a niche, our job is easier.
Assume there are two firms based in Omaha. One firm has a niche of serving the agricultural community. The other targets everyone who meets their minimum asset level.
Every firm wants to differentiate itself. This effort begins with its website.
All aspects of a website refresh are easier with the firm that has the agricultural niche.
The designers can use visual images related to this niche.
The writers can generate copy directed to the unique needs of this niche, which can include transitioning a farm from one generation to another, estate planning, family partnerships, valuation issues and tax considerations.
Differentiating the firm that appeals to investors generally is possible but more challenging. We focus more on the principals of the firm, their qualifications and values.
We attempt to make an emotional connection on all websites using unscripted videos. Our goal is to make the advisors warm and relatable.
It’s much easier to make that connection with the advisor who has the agricultural niche. Imagine that advisor stating that he (or she) was brought up on a farm and watched his parents and grandparents struggle due to a lack of financial planning.
Connection made!
Marketing considerations
Marketing Services For Evidence-Based Advisors...and a New Book!
We offer consulting services on how to convert more prospects into clients through Solin Consulting, a division of Solin Strategic, LLC.
We offer a full range of digital marketing services exclusively to evidence-based advisors through Evidence Based Advisor Marketing, LLC. You can see examples of our work here.
My new book:
Ask
How to Relate to Anyone
Is now available in all formats. For more information, click here.
Schedule a call with Dan here
We are a digital marketing firm, yet I’m skeptical of the claims made by digital marketers.
I have yet to find a firm that has successfully implemented a comprehensive (which means “expensive”) digital marketing strategy with one exception: firms with a niche.
I’m not talking about basic search engine optimization (SEO), which should be part of the marketing budget for every advisor. I’m referring to paid ads on the major social media platforms.
My informal survey of advisors found a few firms with very targeted niches (like technology employees) created a sales funnel generating a steady stream of leads using social media ads.
When I see claims about how a social media marketing campaign doubled or tripled unique visits to a website, I check the ADV of the advisory firm named in the article. When I did this recently I found the firm had only $2 million in AUM. That’s not a typo.
All aspects of marketing are likely to be more successful if you serve a niche market:
- Your podcast can cover subjects of interest to that market.
- Your YouTube channel can do the same.
- Your e-mail marketing campaign will be more targeted.
- It’s easier for our public relations team to get coverage.
Of course, there are many advisory firms without a niche that are very successful. But, if you’re looking to grow organically, your digital marketing firm will likely generate more positive results if you’re targeting a specific demographic.
Dan trains executives and employees in the lessons based on the research of his latest book, Ask: How to Relate to Anyone. His online video course, Ask: Increase Your Sales. Deepen Your Relationships, is in production.
Read more articles by Dan Solin
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
