Nurture marketing and the wealth management movement
A July 2004 survey of 579 Canadian financial advisors by CEG Worldwide revealed that:
- 44.7% of financial advisors making over $200K are using referrals to find wealthy clients.
- 35.7% of financial advisors making between $100K and- $200K are using referrals to find wealthy clients.
- 18.6% of financial advisors that are making between $50K and $100K are using referrals and they are not effectively finding wealthy clients.
These unsuccessful advisors are likely still relying heavily on push marketing’s ineffective strategies. “Push marketing” is about cold calling, direct mail and newspaper advertising, and selling great quantities of potentially ineffective products to the masses.
Advisors who embrace the new wealth management movement use “nurture marketing,” or “pull marketing,” which includes asking for referrals on a regular basis and educating their clients that the advisor builds their business through referrals.
They find a niche where they can solve a problem, write about those solutions in a website, e-newsletter and blog and develop their writing into magazine and newspaper articles. They create seminars and speaking presentations and share their solutions with thousands of people in their niche, and never have to do another cold call again.
They create deep consultative relationships with their niche clientele of affluent clients. They deliver individualized and systematized financial planning solutions including investment management, financial planning, retirement planning, estate planning, tax planning, asset protection and cash flow and debt management. There is also a transition from commission to asset-based fee compensation structures.
In essence, it’s not about selling, it’s about advising.
“I have found our working relationship to be of exceptional quality and I would not be where I am today without your coaching expertise.” – Tracy Valgardsson Enns, CFP, FDS, EPC, Partners In Planning / Athabasca Financial, Moose Jaw, SK
This article was originally published in Curing The Unmet Needs Disease © Simon Reilly 2008
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