The Four Worst Marketing Tactics for Advisors

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

According to an Investment News survey, the typical advisory firm spends less than 2% of its revenues on marketing.

And it makes sense: Many financial advisors are skeptical that marketing even “works,” and they don’t have much free cash flow to spend on marketing. Instead, most advisors focus on “networking” and other referral-based activities.

But those time-consuming networking events to acquire clients are often more costly than having a dedicated marketing budget.

Let’s say a financial advisor bills $150 per hour for their time. To acquire clients, they spend:

  • $500 in attendance fees for networking events;
  • 2 hours going to networking meetings;
  • 8 hours of follow-up lunch meetings to get referrals;
  • 4 hours meeting with potential prospects who are referred; and
  • 22 hours in preparation work.
  • That’s 36 hours x $150/hour = $5,400 + $500 = $5,900.