The First Question You Should Ask Every Vendor

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As a former trial lawyer, searching for evidence comes naturally. When I’m presented with an opinion on any subject, my first thought is, “What’s the data that supports that view?”

This orientation has served me well. Often, I find there’s no support. Sometimes, research shows the opposite view is more accurate.

The pandemic has generated very different inquiries than pre-pandemic. Advisors want to know how to market their services virtually. In your quest for the “magic bullet,” you have many vendors (including my firm) vying for your business.

Ask all of us a variation of the question above: “What’s the data that supports your view that engaging in that initiative is likely to generate more AUM?”

Looking in the wrong direction

A recent inquiry illustrates something quite common. An advisor called asking how our digital marketing services could increase his AUM. He told me he was very disappointed with his current provider.

When I asked for details, he said he had been paying a retainer of $2,500 per month with the goal of generating more traffic to his website. While his traffic had increased significantly, nothing came of it.

No leads. No new prospects.