Can This Happen to You?
Will You Survive?
Financial advisors, like professionals in any industry, can face various challenges that may contribute to their failure or demise. Here are some common reasons why financial advisors may struggle or fail:
1.Lack of Prospecting, The Number1 Reason:
Financial advisors who don't consistently seek new clients through effective prospecting methods will struggle to build a robust client base. Saving money on marketing will never get you where you want to be. The money is made on the sales side. Great marketing will cost you money. If you see it as an expense, you are making a big mistake. It's an investment. Failing to generate leads can lead to stagnant growth or a decline in business.
2.The Statistics: 80-90%of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.
3.Inadequate Marketing Partner/Vendor: Too many advisors chase shiny objects and do not take the time to do their due diligence when choosing a marketing company. Today’s internet allows small start-ups to look bigger than they arewith elaborate websites yet they have very limited resources, experience, and credibility when you really look behind the curtain. Get proof, ask questions, google their address etc.
4.Your Competitors are Out There: and you are not…you continue to work on referrals only and are happy just doing enough to pay your bills and live somewhat comfortably. That position will allow other advisors in the area to go after your clients and pick them off with their marketing efforts.
5.The Statistics: 80-90%of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.
6.Poor Execution: Lots of plans, ideas, and dreams but no process or organized effort to make things happen. Too busy with everyday mundane office duties that are not productive and no support staff so you can work “on your business” instead of “in your business”.
7.Don’t Listen to The Noise: Lots of FMOs and low-producing advisors are very opinionated on what works and what doesn’t work. Make sure their comments are based on facts and not just perception because they heard something from someone. Sometimes their resource partners are not as qualified and credible as you would think and many of their ideas only help a few top producers at the top. Do your own homework and seek proof to see how scalable and repeatable their recommendations are. Work with the best and most credible FMOs in the industry and do things that can help any or most advisors anywhere in the country…not just a few.
8.Client Dependency: You feel you have enough business with your current book so you stop prospecting and depend on them and referrals only…over time that business can erode, and you will find yourself having to catch up to reach your income needs. Growth and new clients are a must in today’s world where clients are always looking for options and 2nd opinions. Your competitors can drive a wedge between you if they get in front of your book of business.
9.Ethical Lapses: Sometimes desperate, forced unethical behavior, whether it's providing misleading advice, engaging in unethical sales practices, or not disclosing conflicts of interest, can quickly erode client trust and damage an advisor's reputation.
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10. I Don’t Spend any Money on Marketing…
"I don’t have to and most of it doesn’t work anyway”.
We've heard that over and over from those who just won't invest in their growth. They want to save themselves to success. Good, tested, and proven marketing costs money…like many nice things in life. You need to generate at least a 200% to 600% ROI on your marketing dollars, or something is not right…bad concept, bad resource partner, poor technique, or poor vendor…
or hey, it may actually be you doing something wrong
Successful financial advisors overcome these challenges by continually improving their skills, promoting themselves, staying in front of prospects continually, building strong client relationships, and acting with integrity. Adapting to the changing landscape and focusing on client and prospect-centric strategies can help advisors thrive in the industry.
Talk to an Expert, Jorge Villar is the founder of the most successful event marketing concept in the industry. He has consumer response data from over I million campaigns.Schedule below!
