Are You Ready for Marketing to Get Harder in 2022?
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Here are three reasons marketing will get harder for financial advisors next year and beyond. Yet the situation isn’t hopeless. You can adopt strategies that make your marketing easier even with the changes on the horizon.
For most advisors, marketing is hard. It’s either not in your skill set or not something that interests you. As a result, you ignore active marketing tactics and rely on referrals to passively roll in. That marketing strategy can work if you charge your fees based on a percentage of assets under management and the stock market continues to grow by double digits each year.
But are you ready for when marketing gets harder?
I’m seeing complacency from financial advisors when it comes to marketing. One reason is that revenue is skyrocketing based on stock market performance alone. Financial advisors lack a sense of urgency to actively seek out new clients when revenue continues to grow on its own. A second reason is that some firms face staffing shortages and don’t have the time to dedicate to marketing.
During good financial times like these, I tell firms they should invest in their marketing to prepare for the next economic downturn. A downturn creates a lot of opportunity to pick up new clients because it is one of the rare times when the population undergoes a synchronized “money in motion” event.
It is also a time when advisor revenue suddenly shrinks due to lower AUM fees, and firms become anxious about replacing that revenue with new clients as quickly as possible. To be prepared for, and take advantage of, downtimes, you need to execute a marketing strategy consistently – and that means before the market drops.
While you should invest in your marketing in preparation for a downturn, you should also do it for another reason. Marketing will only get harder, and those who don’t take marketing seriously will feel the effects the most. Let’s look at three reasons why marketing will get harder.