Consultant: The best way to find the first customers

Becoming a successful financial advisor is a unique challenge, which involves many activities. In addition to completing the required educational courses, many financial consultants also become certified financial planners (CFP) or chartered financial analysts (CFA) to stand out from the competition.

After all, according to the US Department of Labor, there are 263,000 financial advisors as of 2019, and this number is expected to increase by 4% by 2029. In such a crowded field, building a reliable business book can be difficult. The following tips can help new financial advisors succeed and gain market share.

Key points

  • Establishing a position in a highly competitive field such as financial consulting is challenging, but there are some ways to gain a foothold.
  • Expanding your network is vital, but it means going beyond your inner circle and building personal relationships with all kinds of people.
  • Treat people who are about to retire as customers, and look for markets with relatively underserved services to stay competitive.
  • Participate in your community through volunteer services and other projects to feel connected and find potential customers.

Cultivate influence

New financial advisors should reach out of their core circle to expand their network and increase their referral base. Although this can be achieved through social media marketing, developing personal relationships is often a more effective solution.

“My advice to financial advisors who are just starting out is to use influence centers, such as accountants, lawyers, human resources directors, business roundtables, and social media,” declared Donald Reichert, an exit planning expert and founder of The Reichert Company. But because it takes time to consolidate relationships, Reichert emphasized the importance of networking early in his career.

Serving the underserved

Although retirees and close to retirees are obvious sources of business, financial advisors should also look at relatively underserved demographics to attract clients.

CFP Matt Cosgriff, head of the BerganKDV Wealth Management Wealth Management team in Minneapolis, Minnesota, said: “Although most consultants work with retirees who have a rich portfolio, I focus on Underserved young professional fields.”

Participate in the community

One of the best ways for consultants to win new clients is to increase personal involvement in the community. Traditional marketing activities cost money, but community participation only takes time. By volunteering for their nearby and beloved causes, consultants can connect with other like-minded people who may one day become commercial clients.

Financial Advisor: Tips for Winning New Clients

What offers little return

For new financial advisors, cultivating customers is a numbers game, and you can also win through the following outreach methods, although the process can be very slow:

  • Cold call
  • Knock on the door
  • Provide free meals to encourage presentation
  • Set up a fish tank at a trade show to collect business cards

Devon Carroll, the founder of Carroll Investment Management, emphasized that there is no shortcut to attract customers. He explained: “In the first ten years as a consultant, I struggled with the process of customer acquisition. Cold calls, knocks, seminars And hope “Recommendation is my only tool. Although these methods are effective, they are very slow. ”

Bottom line

Those who wish to hire financial advisers tend to choose professionals they gradually trust, although the relationship will naturally develop. By combining community involvement with a strong network, consultants can build a company that will continue to grow in the years to come.


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