How the Sunk Cost Fallacy Causes You to Make Bad Decisions

 

  • Sunk costs are a necessary part of business and life. Embracing them helps you spend money wisely and make the best decisions for your professional and personal paths.
  • The “endowment effect” is an evolutionary concept that causes people to overvalue something just because they own it.
  • The “sunk cost fallacy” causes people to become committed to something they’ve already spent money on, even when continuing to pursue it is no longer a rational decision.

 

Often when people hear the term “sunk cost,” they think of losing money. That’s a mindset we need to change.

Sunk cost is actually a necessary and rational part of business and life. Trying to avoid it is what leads to irrational decisions and wasted money. Embracing the concept can help you spend money more wisely and keep yourself on the best personal or professional path.

I’ll show you how.

What is sunk cost?

“Sunk cost” is an expense you’ve already incurred and cannot recover. These are in contrast to prospective costs, which are future expenses you may avoid if you change course.

Sunk costs, for example, may be:

  • The $1,200 fee I paid to cancel my family’s trip to Japan to avoid coronavirus.
  • College tuition, especially for a field you don’t or can’t pursue after graduation.
  • The money a startup invests in creating a product before pivoting.

We face sunk costs like these in both our professional and personal lives every day, and they can be beneficial. They become a problem only if we approach them with the wrong mindset.

The sunk cost fallacy

The problem with sunk costs is their tendency to convince us we have to forge forward because we’ve already invested too much to quit or change direction.

Say, for example, you’ve gone to law school and earned a law degree. Once you graduate, you decide you don’t want to be a lawyer but instead write a novel or return to school for marketing.

That shouldn’t be a bad thing.

The sunk cost fallacy is the mindset that you’ve just got to take on the burden of being a lawyer for the rest of your life because of the time and money you’ve sunk into law school. But why would you spend the rest of your life in a career you don’t like just because of three years in a particular pursuit?

Businesses can fall into this same trap. You might spend months and thousands or millions of dollars pursuing a product or project, and then realize it’s no longer the best path forward for you or the business. 

At that point, you can accept the investment as sunk cost, but many people are compelled to continue pursuing something solely because they’ve already put so much into it. Even if it won’t pay off best in the long run — even if you could earn above and beyond your sunk cost — you feel the need to stick to what you’ve started.

The endowment effect

This mindset about sunk costs comes from a psychological concept called the endowment effect. This is our tendency to overvalue something just because we own it.

Business Insider illustrated the endowment effect with an experiment in its series “Why Are We All So Stupid?” where host Sara Silverstein offered to buy people’s lottery tickets for two or more times their purchase price.

In the experiment, 78 percent of people refused to sell their tickets, concerned they risked selling a winning ticket. One man even replied, “Do you have $700 million?” demonstrating how highly he valued his ticket, as opposed to about $5 he’d sunk into buying it or $10 he could earn selling it to Sara.

Psychologists believe humans are hard-wired to this kind of loss aversion due to evolutionary pressures on losses and gains.

Consider that, for a hunter-gatherer society, the loss of a day’s food or water could mean consequences as severe as death. Gaining an extra day’s food is not very useful — traveling around with extra food on your back is actually a burden for a nomadic community. 

Evolutionarily, we learn that loss is greater than potential gain, so we overvalue what we already have.

This innate loss aversion leads to the sunk cost fallacy: We don’t want to lose what we already invested, created, or own, even if it’s no longer a rational pursuit.

The rational sunk cost mindset

You might be hard-wired emotionally to avoid sunk costs, but economically rational thinking can help you accept and embrace them.

Here’s a great example of that rationality: I started to work with someone last year on a website build with a $12,000 budget. About halfway in, when we reviewed what he was getting and why, it no longer made sense for his business.

He realized all he really needed was a simple website he could probably create through Wix or Squarespace and maintain himself — after he’d already spent about $6,000.

The loss-averse human might think you absolutely need to finish this project; you’ve already spent $6,000 on it! But he decided to stop and accept that sunk cost.

Here’s why: The prospective costs of stopping then were much lower than if he continued with the website we were building. He would have spent another $6,000 on the project, plus future maintenance costs. Stopping meant a $6,000 sunk cost, plus maybe $30 or so to set up the website he actually needed.

An economically rational mindset doesn’t see a wasted $6,000 on an unused website. It sees this client spent $6,000 to end up with a website that was perfect for him, instead of spending $12,000 plus future costs on a website that didn’t serve him at all.

You can apply this mindset to any sunk cost:

  • For my $1,200 sunk cost on the Japan trip, I gained peace of mind and safety for my family, plus a Cavoodle puppy I could buy with the $5,000 I didn’t spend on the trip.
  • For the sunk cost of a law degree, you might gain unique expertise and potential greater earning opportunities for pursuing a career you’re passionate about.
  • For the sunk cost of pivoting, a company might gain millions of dollars in sales pursuing a more fitting line of business.

Where are your sunk costs? 

I challenge you to look at the decisions you make in your business, career, and personal life. 

Ask yourself whether there’s anything you’re doing now simply because you’ve sunk time or money into it.

Are you pursuing anything you no longer have a rational reason to pursue?

Try to approach that thing with an economically rational mindset. Can you change course now and accept the sunk cost as a victory?

This is based on an episode of Fractal Marketing, the podcast for entrepreneurs who want to grow their company through smarter marketing. Subscribe and leave a review through Apple, Google, or wherever you listen to podcasts.

Online Marketing for Financial Advisors

As a financial advisor, your goal is to grow your business, manage the needs of your existing clients, save time and make more money. It’s time to think about optimizing your marketing channels. The financial service industry is slow to adopt online marketing practices. Earlier, a skilled salesperson would meet with prospective clients in person and this would work because advisors were in control of all the information that investors needed to make the selection decisions. But things are now changing. The internet makes this culture obsolete. When it comes to generating leads, traditional marketing efforts like seminars and referrals won’t cut it anymore.

What does online marketing entail?

  • Search engine optimization
  • Simple notification service or short message service
  • Social media
  • Paid ads (PPC) and placements
  • Webinars

Here are a few things to know about online marketing-

Inbound Marketing

The biggest trend that is impacting the way financial advisors market their services is inbound marketing. It uses a combination of social media, free offers, email marketing and blogging (which is considered content creation marketing) to connect with clients who might be interested in the products/ services you offer. The past has largely witnessed advisors relying on outbound marketing strategies to win new clients like seminars, direct mail, and telemarketing. These are rendered ineffective as more and more people are now using the internet to find and select financial professionals.

Your website should be an extension of you

Your homepage has 10 seconds to deliver a compelling message that will cause clients to want to learn more. If you fail to make an immediate impression, your clients will move on. People do not want to have to search for information on your website. A person should be able to know exactly what is it you do by glancing at your webpage. How to achieve this? by designing your website strategically to generate leads and ensure a positive organic user experience.

Video marketing is very effective

Video marketing is rapidly becoming a dominant force on the internet, surpassing the written word. It is a highly effective way of conveying information quickly and creatively. It is after all the next best thing to a meeting with a client in person. Social media platforms like Facebook and Instagram have live video streams that will help you communicate instantly with clients creating a highly engaging user experience.

Blogging gives you a voice

Outbound marketing tactics can lead to rejection rates that exceed 95%. Additionally, they are disruptive because you are contacting people who do not wish to be contacted. Bogging is by far the single best way to generate traffic for your website. It keeps the content on your website fresh and helps remarkably with SEO value. If you produce stellar blog content, you can easily solve financial problems for clients, establish yourself as an expert in the field, increase traffic and produce contact data for your drip system.

Engaging with your audience is crucial for your firm’s digital presence. You have to actively market your business where people spend most of their time if you wish to build brand trust. Also, it helps immensely with referrals. People are more likely to trust other people who have used your services than you. Online marketing, after all, is not a set it and forget strategy and it most definitely is not an overnight phenomenon. While content is definitely important, it’s just a piece of an overall campaign that aims to move a prospect closer to the advisor over time. Generate awareness of your firm and recognize that your prospects will evaluate your services before signing on. The ultimate aim of online marketing is to successfully get clients onboard. From there, it’s a slow but effective process.

Financial Advisor Marketing Agency

In order to get your message in front of clients, capture their attention in a crowded marketplace, financial advisors need to be able to determine and then communicate what makes their firm truly unique. Just as you have mastered your industry-specific craft, marketing agencies are experts in selling and communicating. By leveraging the right agency’s skills and expertise, you can make a more powerful impact. No matter the size of your firm, an agency will ultimately elevate your brand. 

Here are a few things you might want to consider — 

  • Explore and understand what different marketing agencies can do for you
  • Learn what working with an agency entails — roles, expectations, processes and typical schedule.
  • Find prospective agency partners, weigh all odds before selecting the right fit for you. It’s also okay to consult other people. 
  • Understand how to approve, review and prepare to deploy marketing materials
  • Evaluate your project and plan to refine

Why should you consider working with a financial advisor marketing agency?

Today’s financial advisor marketing needs to include education on the complex, volatile landscape that makes financial planning so vital in order to attract new clients and prospects who do not completely realize they need financial support. If they understand this need, they will be more likely to seek support. This is why working with a professional, expert agency can be so crucial for business growth and expansion.

 

 An agency working with strategic, agile minds and professionals dedicated to financial advisor marketing will know how to research the market, identify differentiators that set any advisor apart from the others while analyzing the competition. Then working with the information gathered, you can implement a data-driven marketing strategy using the agency’s recommendations. 

What are the types of financial advisor marketing services available?

Strong branding

strong branding is vital if you wish to connect with and attract clients today since finances are a very volatile topic. An agency will help you create a strong brand identity that will effectively appeal to a targeted demographic.

Social media marketing

The only non-negotiable virtual presence that every advisor must have is a professional updated website. However, consumers are far savvier than ever and a prospective client will have definitely done their due diligence on you before they avail your services and for financial advisors, the process of getting in front of prospective clients has been a social endeavor. 

Thus, social media will not only augment how you present yourself to the public but it will be a highly effective means of interacting/connecting with others especially if you’re yet to crack the code of networking events. Another benefit is that even those you’re not interacting with will be able to see how you communicate with others. 

 

Community events

Despite the increasing popularity of digital marketing, traditional forms of marketing like face to face networking is still highly valuable, especially for financial advisors targeting a specific geographic area like a county or a town. Whether it’s by hosting a block party or sponsoring a local charity event or getting involved with some other creative endeavor, advisors can market their services to people through these community gatherings. They might also want marketing materials or branded business cards to make the most of these events.

Content marketing

Your website is important because of the compelling content you include in it, one that is responsible for attracting traffic and conversions. Strong, professional comprehensive content both online and offline will help you build a reputation for credibility and expertise in the industry. A professional agency will help by creating, planning, sharing and promoting relevant content that builds professional awareness. 

You likely struggle to successfully market your firm unless you have a degree in marketing. Successful financial professionals know that investing in the right marketing solutions will only yield positive outcomes and lead to a steady increase in revenue for years to come. If you wish to strategically implement strategies while adhering to complex compliance department requirements it’s time to get in touch with a marketing agency. 

Scaling Your Business Using A Remote Team – with Meryl Johnston

This episode of Fractal Marketing with Gerard Doyle is “Scaling Your Business Using A Remote Team – with Meryl Johnston”. Meryl is the Founder of Bean Ninjas, a bookkeeping and financial reporting firm, and today leads an in-depth discussion on how to achieve success using a remote team that works with members from anywhere in the world.

Meryl shares the birth of Bean Ninjas, her insights on making her first hire, and the sheer hustle it took to grow the company into a 20-person strong organization. She talks about how specializing in Xero was a huge step for the business and looks back on the masterminds that helped form the company into what it is now. Meryl is a Chartered Accountant who specialises in cloud accounting software “Xero”. The business is now 4 years old and has a distributed team of 15 based in 6 countries around the world. Bean Ninjas were recently awarded the prestigious Xero Bookkeeping Partner of the Year for Australia in 2019. Prior to Bean Ninjas Meryl worked at international accounting firm BDO, ran a consulting business and taught accounting at a local University.

HIGHLIGHTS

01:31 Bean Ninjas and their early adoption of remote teams

08:07 Making the first hire and its birthing pains

12:52 Marketing: finding and maintaining new clients

16:47 Bean Ninja’s creative courses

21:26 Gaining recognition and building the community

30:03 Discussion on masterminds

34:56 Marketing advice you wish you knew back then

QUOTES

07:41 “It’s just we want everyone to be productive and successful and so we have conversations with everyone about, do you need another monitor or are you happy with work from home or do you want us to pay for a coworking space? So it’s a bit more individualized at the moment.”

09:45 “And in hindsight, I probably would hire a VA much further down the track and hire the more senior people possible to help create the processes and take ownership of departments and hiring other people rather than getting the most junior person as, well, the cheapest person that you can as the first hire.”

13:16 “And so we followed that methodology and launched in a week and got our first customer in a week. And really, we got that customer from posting in a Facebook group about our story that we were launching this new business. We had created a web site in a day and we were just having a crack. And so people kind of liked the story behind that and that’s how we got our first customer. And then it was hustle.”

21:26 “We were really proud. In 2019, Xero selected us as their Australian bookkeeping firm of the year. So out of all the bookkeeping firms in Australia, we were number one. It would’ve been very difficult to do that if we were splitting our focus across multiple pieces of software.”

30:37 “The very first mastermind I was in was for accounting firm owners who wanted to think differently and that’s where I found my first co-founder was in that mastermind. We founded Bean Ninjas together. So that was a huge benefit that we found each other… And then built enough trust through those regular calls that we felt that we would be good business owners.”

35:02 “It would be to focus more on sales. So in our early days, it was direct sales that brought in customers and I probably spent a bit too much time on brand building and content which is a long term strategy. And so I’m glad I did because all of that work that I put into content really helped but it didn’t pay off until 2 or 3 years down the track. And really, we needed to be making sales.”

RESOURCES

BeanNinjas Website

The 7 Day Startup: You Don’t Learn Until You Launch” Book by Dan Norris

Connect with Meryl on Linkedin 

Financial Planning Marketing

Financial planning is indispensable if you wish to determine your short term and long term financial goals. It doesn’t matter how committed you are to your business, finances are your top priority; if the money is not there you simply won’t succeed. Similarly, business development is the ultimate priority for any financial advisor and a flourishing business translates into a bigger bottom line. There are always however more referrals to ask for, more accounts to get and more new clients to prospect. Planners looking to increase their marketing efforts must consider implementing the best strategies that will nurture and grow their practice.

If you are a financial planner, you’d want to market yourself in the most cost-effective way possible. Whether you are an established practice or a new firm looking for a comprehensive way to get your name out there, you need stellar marketing solutions. Here’s why-

Interact with your niche market

To help develop a polished, unique and consistent way for potential clients to interact with your firm. You also have the benefit of a highly experienced, fully-staffed marketing department who will guide you and assist you in every way possible and partner with you to implement a marketing strategy aligned with your resources, ability, time, sourced from your strength and aimed directly at your prosperous future.

Save time and money

You may not have the budget for full-time marketing staff- a good one-stop-shop will help you with everything from establishing a strategy for building and promoting your professional website. You can now focus on and proact what you do best while keeping new client development and business growth a priority.

Stand out from the pack

It’s a highly competitive marketplace. If you leverage the right expertise and tools, you can easily gain access to strategic, intelligible marketing plans that include compelling content to differentiate you from your competition and demonstrate the experience you bring to your clients.

How will a comprehensive marketing solution help me?

Branding

If you implement a branding strategy you can easily stand out from the stiff competition and ensure your message is not ripe with jargon. A firm message is the core differentiator for your brand. An effective marketing strategy will focus on offering an initial freebie or help you stay ahead of the curve by explaining prospects what your CFP or CFA designation means to them and how it will help them achieve results. You can additionally develop your brand by highlighting the benefits.

It will help you share your knowledge

You can hold a seminar keeping in mind your target market and share relevant information that will show participants that you have the right answers to all their financial planning challenges. You need to put your knowledge out there in order to establish credibility. A good marketing solution provider understands the significance of a website that is secure, compliant and tailored to your target audience.

Referrals

When it comes to the trust needed to handle financial affairs, nothing beats new business from clients who are referred to you by other satisfied clients. An effective marketing strategy will help you get your products and services across people and network with accountants, lawyers and other non-competing professionals who happen to appeal to the same target market.

Ultimately your services add tremendous value by eliminating uncertainty, stress or obstacles to your clients’ ambitions. They can sleep better at night knowing that their taxes and finances are in good hands. Expand your services by being top of mind for your client. Clients’ financial planning needs are rapidly changing. With rampant mistrust in the financial services industry, clients are now hunting for the objective, effective and trusted insights from their CPAs. As their highly trusted accountant, it’s time for you to step up to the opportunity.

 

 

Financial Advisor Marketing Plan

A written advisor marketing plan can be quite compelling. Sure, every advisor out there has an idea of what they’d like to work upon and to be reminded of these ideas every day can be tiring if not consuming. When you take the time to articulate your strategies, goals, and tactics you are able to see things for yourself more clearly, remain constantly motivated and grounded.

When you put your ideas on paper, you release your mind from the pressure of balancing everything in your head. Additionally, your advisor marketing plan will keep you from activities that do not help you move towards your goals. You do not need distractions.

A comprehensive financial advisor marketing plan should include-

  • Measurable goals and objectives
  • Areas of focus
  • Value (proposition/competitive advantages; what do you offer that is unique and that distinguishes you from your competitors?)
  • Competitive Analysis/SWOT Analysis- what is your competition doing and what are their value proposition/competitive advantages?
  • Budget- how much are you willing to spend on your marketing program?
  • Marketing stance/your ideal client
  • Marketing calendar- schedule your whole year upfront and stick to your dates
  • Projects and action steps (plan or a broad approach for achieving what you wish to accomplish)

Why do you need a plan?

If you have business expansion goals (as most advisors do), you’d be better off with a well-defined marketing plan even if your business is not scrambling for clients today. Marketing will help you gain prospect attention, establish your position in the market, win customers while building demand for your services. You may be indulging in a shotgun marketing approach without a clearly laid out plan, a little of this and a little of that and none of it is directly targeted towards accomplishing your objectives.

To define how you will establish your position in the market

When you make a plan, you will be able to define your ideal client profile, target market and what is it about your firm that makes you better suited to serve them. Once you know these, you can easily create your identity, messaging and marketing stance to reach those ideal prospects and clients.

To outline what you will do to gain prospect attention

You will define strategies that will boost your firm’s exposure to not just existing clients but also ideal prospects. Once you identify your competition and their value proposition, you can easily work on yours and make it unique.

To determine which actions will build demand

Your plan should be able to determine tactics that will lead to conversions and win you, customers. You can do all the positioning to gain prospects but if you fail to specify actions to move prospects along the sales process, your marketing strategy is not working for you and you probably need a new one. The ultimate goal of any kind of marketing is to gather the most purchase-ready customers who are the best fit for your products/services and make it convenient for them to reach and choose you.

To ensure your marketing plan is actually implemented

Marketing should not be an item that gets pushed to the bottom of the list when there are competing priorities and time is short. Make sure your marketing plan includes hard scheduled deliverables. Once the schedule is set for the year, it is your job to stick to it. A consistent marketing plan will take some time to show results.

Financial advisors often tend to believe they are more comfortable on the “left brain” i.e. the numbers side of the business than on the “right-brain” or the more subjective feeling sales and marketing side. However, without an implementable marketing plan, you will feel like you’re spinning in a hamster wheel to figure out how to get more and more clients thereby growing your business. Do you have a marketing plan yet? If not, do you have a scalable resource to help you develop your personalized plan and deliverables? Now is the time to begin. Make this year all about results with an effective marketing plan.

 

Financial Advisor Marketing Strategies

In an increasingly competitive landscape of more than hundreds of thousands of financial advisors, it can be challenging to stand out and differentiate yourself by simply offering comprehensive financial planning and great service. One of the most crucial but difficult tasks is not just perfecting their craft, but figuring out how to get new clients and ultimately grow your business. An advisor needs to learn how to effectively market their services and communicate their value to audiences that they might do business with. Here are a few strategies that will help you.

Know your niche market

You should be able to describe your target audience to anyone with such clarity that they should be able to visualize it. Research and learn more about the demographics as well as psychographics. You cannot be delusional enough to believe you market to everybody. The riches are always in the niches and you need to specialize in knowing your ideal client. There are a host of options to choose from- retirees, divorcees, company executives, dentists or plumbers. The idea that casting a wide net will inherently translate to more business is wrong.

Listen to what your clients have to say

A client-centric approach never fails. Your current and past clients are a group your marketing team should focus on since if you’re not reaching out to them, you can be sure your competitors definitely are. Send out thank you letters or birthday cards that are sincere. These will go a long way in getting your clients to give you referrals. Additionally, address every complaint that you receive from unhappy clients and resolve them promptly. Let your clients know that you value their input and they will be more likely to do business with you again.

 

Know how much money you make per direct outreach

You are blessed with the incredible ability to control your income! Figure out the number of calls it takes for you to make an appointment and then the number of appointments it takes to get a client. If you know how much you make per client you should be able to quickly figure out how much you make per phone call. If you want to make some extra money,  pick up the phone. You ideally need to keep track of- the number of calls you make, the number of completed calls and the number of appointments you set. While implementing these marketing ideas, knowing your numbers can be highly motivating but also discouraging along the way. Don’t let it get to you.

Focus on conversions

Channelize all your energy towards your site’s user experience, traffic is great but ultimately worthless if it’s not converted into paying customers. You should strongly consider hiring a web designer who will make your site easy to navigate, to follow information with ease thus ensuring enhanced user experience. Your clients do not have the time for financial jargon, broken links or an outdated website. Have your contact information on every page and take extra care to maximize your “above the fold” use.

The ideal thing to do is to work with a marketing agency. If you have been looking for one, you’ll quickly learn that no two agencies are the same and none can guarantee results. It’s also a time-consuming process. But for the sheer efficiency and seamless operations, you might want to consider a financial advisor marketing agency for your next campaign.

 

 

 

 

Digital Marketing for Financial Advisors

Elite professional financial advisors realize that distinguishing themselves from competitors demands dedication, innovation, efficiency and the willingness to go beyond the norm. The perfect digital marketing solution will bring the same attitude to your marketing strategy by developing customized web assets that distinguish you from the pack and represent you (and your practice) with the highest possible level of professionalism and finesse. You shouldn’t have to settle for “canned” web themes and content being used by every other attorney or advisor. It’s time you reach your audience with the right content and a fresh approach.

How will digital marketing help your firm?

Reach your target audience

While formulating your digital marketing strategy, it’s vital that you provide the right information to the right people. An experienced team of copywriters and marketing professionals will be able to efficiently customize your message and strategically deliver it to your clientele through a host of diverse channels. If your present marketing efforts are not accomplishing this, needless to state, you’re leaving money on the table. What’s the result? More referrals more lead to more repeat business and higher profits!

Reduce your seminar costs and efforts

Long gone are the days of spending a lot of money and resources each month to try and fill the seats at your seminars via direct mail. If you are still doing it, you owe it to yourself to become fully informed about the different cost-effective and time-saving ways in which digital marketing will up your game. Leverage the power of the internet to reach more and more people every day for less money. You advise people every day on how to protect their assets. It’s finally time you implement a vehicle that is more efficient than direct mail. Social media platforms will engage with your audience, resulting in a higher level of credibility seamlessly.

Map your progress through feedback

The most significant benefit of digital marketing is not just that marketing your financial services digitally but you can get proper feedback and insights from your digital marketing campaigns which traditional marketing doesn’t allow. You can interact with your audience, know their preferences and grievances and address them efficiently. Additionally, if your clients have a positive experience with your service they are more likely to recommend you to their friends.

Google reins

It is important to boost your Google rankings and this cannot be stressed enough. Why? 3.5 billion Google searches are made every day. Additionally, Google happens to own 92.42% of the search engine market share worldwide. With statistics like these, you have to determine immediately how to rank high in Google to be discovered by prospects and increase SEO rankings by driving traffic to your site. An effective digital marketing strategy will prove to Google that you have click-worthy and relevant content that searchers would want to see.

Also, ensure you check out your analytics frequently to determine how your blog, website and social media channels are performing. There are a host of tools that you can use in Google analytics. The key, however, is to know which ones to explore so that you get the results you are aiming for.

Digital marketing is perhaps the most effective way to reach potential clients. Your digital marketing approach will make or break your business’s success hence it’s imperative that you are well invested in terms of resources, time or efforts in a well thought out, comprehensive, profit-driven digital marketing strategy. It, however, is a work in progress and not an overnight phenomenon. It will probably take months to begin seeing the consequences of your marketing efforts. If something needs fine-tuning, now is the time to get that together.

Financial Advisor Marketing

As more and more advisors are delivering comprehensive financial planning and wealth management services the key to growth as a financial advisor is not to be better but also different and your marketing solution provider should understand that. Financial advisors need to develop an effective brand for their firm by identifying the significant qualitative factors that make an advisor’s practice unique and targeting the not already overtly saturated client segment. These are branding strategy elements that help any financial advisor create a compelling, relevant message that will elicit client management from the type of clientele you have chosen to serve.

Why do you need an effective financial advisor marketing strategy?

In the initial years of this profession, advisors were able to perfectly differentiate the brand of their advisory firms by relying principally on language like “fiduciary”, “knowledgeable”, “trustworthy” to distinguish themselves from the insurance company salespeople and broker-dealers who are often poorly trained. But thanks to the rapidly growing number of CFP professionals who provide fiduciary best-interests advice based on their years of experience in providing customized financial planning advice, such terms have been rendered ineffective. At most, they only describe table stakers – a bare minimum criterion that any financial advisor is expected to possess.

With more and more advisors continuing to move into fiduciary advice while pivoting away from products/services, it must be challenging for talented advisors to deal with this crisis of differentiation and market themselves in a way that stands apart from the rest.

Financial advisor marketing best practices

SEO

People with a direct need for financial advice search by tens of thousands with nearly 20,000 searches for terms related to “best financial advisors near me” per month. It’s crucial to optimize your website and achieve positive SEO results by leveraging the intent of the potential customers to find you as their financial advisor and channeling them to seek your services. Simple SEO tools and techniques can be beneficial for financial advisors to develop their very own leads through organic internet searches.

Branding message

Leverage the best marketing solutions to develop a brand message if you wish to hone your existing client segment. It’s important to invest the effort, time and resources required to develop a genuine, relevant and compelling branding message. This will help financial advisors find their marketing efforts to be way more effective because it will serve to highlight their specific value proposition to a specific clientele and ultimately enable you to spearhead the competition and grow a successful practice in a highly competitive marketplace.

Networking

Networking translates to building relationships that establish you as a credible expert in the community. Implement strategies that will help you reach potential clients and connect with the members of your niche. You can help small businesses connect with other businesses, hosting various events like an expo featuring local businesses that provide products and services to a common target and creating an “insider’s” directory of businesses that your clients trust. Effective networking means providing others value.

The financial planning industry has witnessed significant growth. To gain a formidable share in this rampantly growing market, financial advisors must establish themselves as trusted partners in managing their client’s assets and effectively market themselves to potential clients. Needless to state, with the ever-increasing awareness on the significance of fiscal security, it’s imperative that financial advisors are more aggressive in creating opportunities for their firm. With stellar marketing solutions, you will see the difference in no time.