What is a Practice Growth Multiplier?

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

With prospecting becoming increasingly challenged, advisors are trying their hand at marketing with mixed results.

Many are following the crowd and testing trendy marketing tactics like podcasts or Facebook ads.

A trendy tactic, marketing-growth hack, or strategic alliance with a single influencer or CPA will only provide a temporary boost.

Understanding and managing your firm’s practice growth multiplier (PGM) is your ticket to enduring success, higher profits, and a more rewarding practice.

What is a practice growth multiplier?

Most practices track their annual growth as a single number like assets under management or fees.

“Our assets under management or fees grew at 7% last year.”

This is a good data point, but not actionable or scalable.