Thriving financial advisor firms have a few things in common. For one, they tend to be referral engines. However, only about a quarter of financial advisors say they are good at acquiring clients, according to a recent study released by Capital Group. Do you fall in the 25% of professionals whose palms sweat at the thought of lead generation? Perhaps 2025 is the year you change your mindset and aspire to greatness.
A lack of plan can be the kiss of death when it comes to growing your client base. Hitting a new milestone doesn’t have to be intimidating, though. Both an art and science, word-of-mouth advertising can be a powerful source of leads. Wealth management is a personal business, after all. Clients usually don’t wake up one day and decide to Google “financial advisors in my area.” Instead, they look to their network of friends and family for recommendations. When your name comes to mind, you should be flattered and relish the opportunity to replicate this success.
Still, sometimes you have to be proactive and ask. Growing your wealth management practice takes time, effort, and patience. Follow these tips below to help you make a request that gets results and leads to a ripple effect. Happy clients beget happy clients.
Tip #1: Build Strong Client Relationships
Take care to deliver a winning client experience and your reputation will precede you. Prioritize regular, open and personalized communication. Lead with empathy and understanding. Provide a sounding board for your clients when they share their goals, concerns, and frustrations.
Tip #2: Ask Directly and Strategically
Context matters when making the ask. The best time to approach them is when everything is going well and they’ve had a recent win. Be specific about your request and frame it in a way that’s gracious yet clear.
Example: “I’ve really enjoyed helping you with your financial goals and I think I could be an asset to your friends and family who value the same things. Would you be open to referring them to me?”
Tip #3: Leverage Technology
Asking for referrals is personal and should be done in person ideally — and with discretion. But that doesn’t mean you can’t get some help from technology to manage the process. You might invest in a customer relationship management (CRM) system to track referrals and outcomes.
Make a point to share thought leadership posts on sites like LinkedIn to position yourself as an expert. Engage in discussions there to further build your credibility and exposure.
If you haven’t already, start an email marketing program. Send personalized campaigns to your existing clients, reminding them you’re in their corner and would like to help others they care about.
Tip #4: Create a Referral Program
A referral program can be one way to fast-track growth. If this interests you, be sure to set clear guidelines and incentives. Look to a referral tracking system to gauge the effectiveness of the program or else you risk wasting time and resources going after the wrong sources. For the sake of ethics, it’s a good idea to offer modest incentives, like a restaurant gift card, to both the referring client and the new client.
You’ve worked hard to get to where you are. Just think about the potential if you dream a little bigger. Cultivating a strong referral culture can be one advantage in a competitive market. Speaking of advantages, tools like Docupace can also position you for success. Our solution can help you open accounts faster, store your documents securely, and empower your advisors with the back-office technology they need to focus more work on clients. To learn more about the Docupace platform, connect with us here.
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