Ask any financial advisor and they’ll say the biggest challenge for their practice is getting a reliable stream of high quality, qualified prospects in the door. Should financial advisors buy leads? This article provides an analysis of the major financial advisor lead generation companies as well as the pros and cons of outsourcing lead generation for financial advisors, RIA firms, CFPs, and wealth managers.
For those of you who are new here, my name is Sara.
- I am a financial advisor marketing consultant.
- I’ve been helping financial advisors get new clients for over 10 years now.
- They appreciate my blunt and clear take on things. Here are some reviews of my financial advisor marketing services.
By the way, thanks for joining me.
I have a financial advisor lead generation newsletter which is best described as “fun and irreverent.” So please subscribe! I’ve also written these blogs that might be useful if you are a financial advisor who is out there trying to get new business:
AI marketing for financial advisors
6 things you need to know about succeeding on LinkedIn
Financial advisor value proposition
Let’s get on with the blog!
Key Takeaways
- Main Challenge: Getting high-quality, qualified prospects is the biggest challenge for financial advisors. Interestingly, 38% of Americans feel stressed about their financial situation, which highlights the immense need for professional financial advice.
- Function: Lead generation services capture and qualify leads via the Internet, primarily through pay-per-click ads.
- Internet Utility: Generations X and Y often seek financial advisors online, making digital lead generation viable.
- Considerations:
- Competition: High competition among advisors.
- Lead Quality: Not all leads are high-quality.
- Distance: Rural advisors might face travel issues to meet leads.
- Cost: Services are costly but can save money compared to setting up in-house systems.
- Alternatives: Use SEO, social media, podcasts, newsletters, and networking to generate leads organically.
- Company Insights: Reviews companies like SmartAsset, Paladin, WiserAdvisor, GuideVine, and Right Financial Advisor.
- Advice: Combine outsourced and organic methods; focus on building a strong personal brand.
Are Financial Advisor Lead Generation Services worth it?
We’ve all heard the incredulous statement, “Nobody looks for a financial advisor on the Internet.” The biggest question that most financial advisors have about lead generation services is about their legitimacy. The logical assumption is that if finding qualified high net worth individuals with money to manage is so hard for a highly credentialed financial expert, how could it be possible for some third party firm?
See my post on why why Financial Advisor Lead Generation Services Stink!
Let’s start with the question of what a financial advisor lead generation service is, shall we?
A financial advisor lead generation service is a company that seeks to capture leads for financial advisors through the Internet. Many lead of them target individuals seeking financial advice through what is called pay-per-click advertisements.
How do these financial advisor lead generation services work? When somebody types in, for example, “financial advisor in Milwaukee, Wisconsin” or “how to get 401k advice in Tucson, Arizona”, ads come up which refer the person to a lead generation website where they can search for a financial advisor.
Once the lead is gathered, usually it is qualified and verified before being passed on to the financial advisor subscribing to the lead generation service. But do verify that before you sign up for the service.
Do people really seek financial advice through the Internet?
The times they are a’changin.
Can a financial advisor get leads through the Internet? Yes! With the digital boom, this is a huge opportunity for financial advisors serving the Internet-friendly Generations X and Y. They trust the Internet so much that they’ll go so far as to work with a Roboadvisor, for goodness sake.
If are a financial advisor looking to get leads online but does not want to buy them, you’ll need to put a repeatable process in place that you can execute inhouse. This is quite the process and requires several hours of work on an initial and ongoing basis. It costs alot. For this reason, many financial advisors would rather buy leads from a service than set up a system of their own.
Do Financial Advisor Lead Generation Services Work?
Are financial advisor lead generation services worth it?
There are four important things for financial advisors who are using a lead generation service should consider:
- Competition
- Degree of vettedness
- Distance
- Lack of brand value
#1 Financial advisor lead generation services increase competition among the financial advisors
One important thing to keep in mind about a lead generation service is the highly competitive entry point. Think about the online buyer’s mindset. By the time somebody has launched a financial advisor search, and especially if they’re doing this through the Internet search engines, they are “in the market.” The competition level has increased dramatically and it’s likely they’re already talking to a few other advisors, both online and through their own personal network. Everyone has that one uncle who thinks he knows how to trade stocks!
Then, the lead generation service itself sends the prospect multiple financial advisor profiles, not just one. You’ve got competitors coming at you from all angles. The analogy I would make is it’s like applying for a job on Monster.com. Once the job opening is posted, word is out and you’re competing with every qualified candidate on the street.
Now, that’s not to presume that you can’t successfully close the lead. It means that you’re not the only player in the game at that point. You’ll probably have to work harder to earn the sale than if you had come up with the lead organically.
Showing your value as a financial advisor is hard enough; you don’t need the extra competition thrown into the fray!
#2 It is questionable whether or not financial advisor lead generation services sell truly high quality leads
My experience working with these companies has been that some leads are true financial advisor leads, while others are not legit. Some companies don’t bother to actually vet the leads and then you end up with a lead that’s not qualified, verified, or worth following up on. Check for the refund policy before you sign up for the service.
I’m not saying about any one particular company who sells leads, but here is what I commonly hear from financial advisors:
“I subscribed to one of these lead generation services and bought a bunch of leads. Every time one comes in, I call – but they never call me back and I’m out $300 a lead.”
Neeeeeeew kidding.
(eyes rolling)
That’s because they don’t know if you’re Bernie Madoff or not.
Yah, really!
In some cases it was not made clear to the prospect that they were going to be contacted by an advisor. In other words, the lead generation service finagled them into handing over their contact info in exchange for a download of some sort, or for some other reason, but didn’t make it crystal clear to the poor person that they were signing up to be contacted by a financial advisor to discuss their retirement saving strategy.
Ehem.
#3 There can be considerable distance from the prospect
The other aspect to consider is population density. If you live in a rural area, you might end up having to travel far to meet these leads if the conversation progresses. I have heard this is a drawback from several advisors who use lead generation services.
#4 It’s viewed as one step above telemarketing
In my view, $200 or more is expensive for what is essentially a step above a stone cold lead. As I mentioned in #1, in some cases the investor isn’t really looking for anything.
Once you buy the lead, you have to call the person up or email them and you are starting from a position of total distrust and invisibility. It’s really hard to get these people’s attention this way. Who likes getting phone calls from people they don’t know?
Let’s face it: instead of a high value financial advisor, the keeper of their future, hopes, and dreams, you look like a telemarketer.
Given the type of business this is, cold leads are hard to close. There is no trust, nothing to base anything on. They will feel free to mistreat you and even be nasty in some cases. If you want to earn their trust, be prepared to execute a strategy with multiple touch points (phone, email, snail mail, social media), not just one. Be prepared to work hard as you are starting from the lowest possible level of trust in the prospect’s eyes. And even when you do, you’re going to face a great deal of humbling and rejection.
What should a financial advisor do when they get a lead from one of these lead generation services?
Respond right away, at the very latest within two hours. That is because the lead generation service usually sends out these leads to several other advisors and if you are advisor #4, well, the prospect may just have made their mind up by then, or may be exhausted from having to go through the interview process three times already.
How do you distinguish yourself when you do actually get a legit lead, though? You are starting from ground zero.
When you get a lead who knows zilch about you, either because you bought the lead or it’s a cold referral, do this:
- Get your phone
- Put on a nice shirt
- Stand in front of a nice, relaxing picture or plant.
- Smile.
- Invoke a burst of positive energy.
- Press record and say this into the camera:
“Hello, Bill and Betty Boo. I’m Liz Martin. You were referred to me through [insert name].
I know this is weird because you don’t know anything about me, and you may even suspect that I’m the next Bernie Madoff or something. [laugh] Of course I’m not, but you probably wouldn’t even believe me if I told you that.
I can’t blame you. And that’s exactly why I’d like to chat for a few minutes – just to say hello so that I can learn about you, and you can see that I’m not just some financial advisor business card. Let me know when you can talk, my email is at the bottom of this email.”
Don’t blame them when a cold lead ignores you. It’s an instinct – they’re protecting themselves.
No negativity – just hit them with all the positive energy you can.
Every prospect’s biggest fear, at first, is you’re not who you say you are. It’s your job make them feel your humanity and a quick, uplifting video is a great way to accomplish that.
Are Lead Generation Services for Financial Advisors Worth the Cost?
Most of these services render a subscription fee and some have an additional charge per lead. While many financial advisors cringe at the cost of a lead, consider this point.
If you had to create your own lead capture functionality on your own website, it would cost way more than a few couple hundred dollars a month. Consider the cost of an SEO consultant probably starts at about $500 per month at minimum, and that’s not even taking into account the amount of time your marketing person would have to spend producing content to place onto your website, as well as the thousands for your Google Adwords budget. And SEO isn’t immediate, either. It takes a few months before you typically see results. We’re talking about thousands upon thousands of dollars here. If a lead gen service is willing to do the work for you, you’re probably not overpaying.
However, on the other hand, there are several ways that financial advisors can get leads other than buying them.
How can a financial advisor get leads without buying them?
- SEO keyword optimized blogs and YouTube videos
- Social media platforms (LinkedIn, Facebook, Twitter, Instagram)
- Creating podcasts about retirement, college planning, and other wealth management related topics
- Writing email newsletters
- Attending in person networking events
- Getting new leads through referrals/word of mouth
The cost advantage of creating an inhouse lead generation system, instead of outsourcing it, is that once you establish a repeatable process that works, the return on investment can be quite favorable. In other words, the cost of a financial advisor lead can become lower once you establish your own way to find new leads.
Remember that for a small financial advisor firm, the internet is the great equalizer. There are affordable ways for financial advisors to market themselves using the internet without consuming a huge chunk of your salary.
| Topic | Description |
| Definition of Financial Advisor Lead Generation Service | Companies capturing leads for financial advisors through the Internet. |
| How Services Work | Leads are gathered via online searches and referred to advisors. |
| Target Audience | Internet-savvy Generations X and Y. |
| Pros | Can reach digital-friendly demographics. |
| Cons | 1. Increased competition 2. Variable quality of leads3. Distance issues for rural advisors |
| Costs | Subscription fees and per lead charges. |
| Alternative Lead Generation Methods | Social media prospecting, SEO blogs, YouTube videos, podcasts, newsletters, networking events. |
| Analysis of Lead Generation Companies | No specific companies analyzed in detail. |
| My Final Take | Should verify the quality and refund policies of services. |
I’m about to share the feedback I’ve heard advisors give about the lead generation companies they’ve worked with. But actually, just one quick question before we jump into it – are you enjoying this blog?
If so, you might want to consider setting up some time with me. There are a variety of ways that I help financial advisors get new clients.
Here are what other financial advisors have said about working with me:
The great thing about working with Sara is she has a finance background so she can write content that is technical and specific. She is organized, always does what she says she is going to do and kept us accountable to get our tasks done. Over time working with her we went from rarely having a new prospect from our website to getting regular, qualified prospects through the website. And she helped us publish a weekly newsletter and made sure it always went out on time.
– Nicole Roberts, CFP®, Rock House team at Wealth Enhancement Group
A feedback-oriented review of Financial Advisor Lead Generation Companies
Let me start off by saying that I am not officially endorsing any of these companies; this rudimentary analysis is meant to inform and educate only. If you are interested, you should do your own research and contact the company directly. In the analysis below, I identify what I perceive to be what makes each financial advisor lead generation company different from one to the next. This is based upon my experience which is anecdotal and can not be presumed to apply universally to every person to participates with these companies.
So what you are going to read is not as much a review of the financial advisor lead generation companies as much as it is a passing through of feedback I’ve heard from my advisor clients. So don’t take it as the absolute truth this is anecdotal.
Okee?
Yah okay.
Now, what are the major lead generation companies for financial advisors? If you are a financial advisor who wants to buy leads, you may want to look at:
- SmartAsset
- WiserAdvisor
- Dave Ramsey SmartVestor
I’ve analyzed each of these financial advisor lead companies below.
Is SmartAsset effective?
SmartAsset attracts high net worth investors to their site by writing informative articles and offering other online resources to them. They then compel the investors to exchange their email address for these resources.
In my experience, I have found mixed results. I have seen that many financial advisors who buy leads from SmartAsset haven’t been exactly satisfied, however I have also heard from a few advisors that did have some amount of success in getting a few new clients. In my view this probably has to do with the way the leads are collected. If you are curious to learn more about this company then please contact me directly.
Is Dave Ramsey SmartVestor worth the money?
I’ve talked to a few advisors who have used this service. The feedback I have gotten is generally more positive than I hear about SmartAsset, though not . However I have also heard that this can be inconsistent, with the quality of leads varying drastically from one to the next.
I’ve have heard from a few advisors who said that Dave Ramsey leads were generally less qualified. Perhaps this is because of Ramsey’s debt management focus; the lead pool may have a high incidence of folks who are trying to get out of debt and hence have lower savings and/or cash flow.
What do you know about WiserAdvisor?
WiserAdvisor has been in the business almost 20 years, and from what I can see this is the longest track record in the game. WiserAdvisor is strictly in the business of lead generation.
What strikes me about Wiser Advisor is that there seems to be much more third party commentary on this company than all their competitors. Perhaps this is a result of the company’s long track record. You can read what investors and even other financial advisors are saying in the 50+ reviews on TrustPilot and several other Internet sites.
Checklist: questions you should ask a financial advisor lead generation services company (before you spend your bucks)
Before you pony up that credit card, here are some questions that you wealth managers should ask whoever you are buying leads from:
- What is your lead failure rate?
- Do you have a refund policy if a lead is no good?
- How do you source your leads?
- How many other advisors are going to get the same lead as me?
- Do you send any “preferred” companies (who are bigger than me and maybe sending you big checks or something) the leads first, before you send them to the little fish like me?
- Do you have a process for qualifying these leads before you sell them to financial advisors?
- Do you provide any follow up resources for me to use on these leads?
- Are you sure these “leads” know that a financial advisor is going to be contacting them?
- How do you make sure that I’m not given the lead after other advisors (who would therefore have a head start on contacting them)?
Get these answers in writing, folks! These lead generation services cost a pretty penny. It’s also a good idea to find out what the cancellation policy is, in case you wind up getting absolutely nothing from them.
Should I buy leads or create a marketing system on my own?
Should financial advisors outsource their lead generation, or should they find leads themselves? The point I’ve made earlier in this blog can be summarized as this:
While outsourced financial advisor leads services may work sometimes, they can be very hit or miss.
So where does this leave us? Instead of buying financial advisor leads, you may want to consider organic, inhouse marketing done by the financial advisor him or herself. Bottom line is that you are probably better off, if can stomach it, creating your own lead generation where you nurture relationships within some type of high net worth community. Though it takes some time to build at first, buildling your own brand and your own lead generation system is generally a better long-term method of lead generation for you folks in wealth management.
So are financial advisor lead generation services worth it…or not?
The overarching theme that I find whenever I review a financial advisor lead generation service, not matter which one it is, is that these programs are built to generate volume without too much of an emphasis on the people involved. It’s a cold, numbers-driven service and that is why in many cases, buying leads isn’t what it is cracked up to be for financial advisors.
That’s my take.
I am not in favor of financial advisors buying leads because in my view there is too much risk involved. Either the lead works or it doesn’t; and if you don’t close the lead for whatever reason, you are left with nothing but…an unclosed lead. I’d much rather see you invest your time and money into something that you can build over time. However I am biased because I help advisors go out and get new clients for a living.
Which reminds me…let’s wrap it up here on that note.
How can a financial advisor marketing consultant help me?
I am a financial advisor marketing consultant. For over 10 years I’ve been helping financial advisors get new clients by expressing their value and presenting it to the world in a variety of ways.
Here are what a few more of my clients had to say about me:
I have worked with Sara Grillo over the last few years and she did an amazing job with our Linked-In platform. In the short period of time she took my followers from roughly 5000 to nearly 15000 and helped me grow my newsletter to over 30,000 subscribers. If you are needing help growing you social media and your business, Sara is a great resource. (five stars, highly recommend.)
– Lance Roberts, Chief Investment Strategist, RIA Advisors
If you’d like, you can read more testimonials about my financial advisor marketing services.
Alright let’s wrap it up!
- I am an outsourced CMO for financial advisors who need regular, full service marketing – blogging, social media posts, newsletters, etc.
- I am an hourly consultant for those who just need one-time or recurring guidance
- People hire me as a ghostwriter to write content for a project fee
- If you are not ready to engage, read my fiinancial advisor marketing tips newsletter and receive one actionable marketing tip in your inbox every morning!
If you would like to discuss how I can help, please send me a note.
See you in the next one!
-Sara G
