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When I hear of advisors spending $80,000 on marketing and getting zero clients, as one advisor shared with me recently, I envision a revolving door. Prospects cycle through and exit as easily as they come in.
Most advisors accept an average conversion rate of prospects-to-clients of 10% to 40%, which they think is normal.
But I point out to new advisor clients that for every two clients they convert each month, there were eight potential clients who came in but went out... and if their average annual client value is around $10,000, then they’re losing $300,000 every five years. They quickly see the size of their conversion gap and its hidden opportunities.
How do you stop the revolving door from spinning, where prospects come in and go out?
Target your ideal high net worth clients only.
Instead of targeting ideal clients, most advisors use “be seen” general marketing, which attempts to create awareness or consideration for your business merely by promoting its existence.
The basic marketing message boils down to: “We are X financial advisory company and we can provide Y advisory services for all of your financial advisory needs. Please consider us.”
That won’t attract a flow of new inbound ideal clients.
Many advisors take this general mindset into their sales consultations, where they think that by sharing their knowledge and solutions pre-sale, it will prove their value and help convert a prospect into a client.
But all this does is encourage the prospect to say, “I need to think about it,” or, “I need to discuss this with my spouse,” or take that free valuable information and use it to shop around for another advisor.
The best way to solve these two problems is to become what I call a “trusted authority” in your market niche.
A trusted authority does not attempt to create awareness or consideration for their business simply by promoting themselves. They attract only their ideal clients, by positioning themselves around a specific problem and addressing it directly in their marketing. This makes them the authority on, or the “go-to person” for, that problem.
As a result, every prospect that has an initial consultation becomes pre-qualified, not just as a generally interested person but as a potential client in specific and urgent need of a solution.
If you are converting fewer than four or five out of 10 qualified prospects that see you every month, start thinking like a trusted authority.
Ari Galper is the world’s number one authority on trust-based selling and is the most sought-after high-net worth/lead generation expert for financial advisors. His newest book, “Trusted Authority” has become an instant best-seller among financial advisors worldwide – you can get a free copy of Ari’s book here and, when you click the “YES” button in the order form, you’ll also receive a complimentary “get new clients” lead generation consultation. Ari has been featured in CEO Magazine, Forbes, INC Magazine and the Australian Financial Review. He is considered a contrarian in the financial services industry and in his book, everything you learned about selling will be turned upside down. No more chasing, no pressure, no closing.
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
