3 Ways to Grow Your Financial Advisor Practice

Last Edited by: LPL Financial

Last Updated: November 29, 2022

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By failing to prepare, you are preparing to fail

- Benjamin Franklin

Running a financial advisory practice can be stressful in today’s world, and with things constantly changing it can feel impossible to do without help. We know that adapting to the market, meeting customer needs, and staying focused on your business goals are key to growth in today’s climate, but it can be challenging to navigate all these demands while running your business. The Covid-19 pandemic has also proven that financial advisors need to be more nimble, able navigate market volatility, and prepared to narrow down messaging to meet the needs of their audiences. So, how can an advisor navigate all this while maintaining valuable client relationships and growing their practice? 

At LPL Financial, we’re helping both small firms and larger practices to not only run their businesses but to help them thrive. Here are three ways to grow your financial advisory practice for the future.

#1: Be Specialized and Tailor Your Expertise to Your Target Audience’s Needs

Rather than putting your practice in a “one size fits all” model, try to niche down your focus to reach key client segments. Understanding that you cannot always serve the unique needs of everyone is the first step in this. Every advisory practice has superpowers – areas in which they specialize and excel – the key is identifying and articulating these superpowers, and then finding your ideal clients whose needs match them. 

It is also crucial to understand the challenges and pains of your target audiences. By studying trends and asking strategic questions, you can better demonstrate empathy towards a prospective client’s pain points and show expertise towards their unique situations. These skill sets will help you and your practice stand out when a new client is interviewing several firms or advisors. After all, potential clients want to feel seen and understood by their financial professionals, especially when planning for key milestones in their lives. Learn more about Client Milestones by life stage.

Clear communication is also important when demonstrating expertise that addresses your target client’s needs. Through email communication, social media content, information on your website, and other ongoing communications you can provide your target audience with valuable insights and thought leadership to aid them in their financial journey.

#2: Retain Clients and Grow Revenue with Repeatable Income Streams

Another trending topic in the financial industry is generational wealth transfer. This phenomenon can create both risk and opportunity for your financial practice. The first thing to consider with younger audiences is a flat-fee, Financial-Planning – as-a-Service model. Providing financial planning services can create new revenue streams for lower AUM prospects or younger clients like Gen X, Gen Y, and Gen Z who may be looking to get started with a financial advisor. One day, these audiences could become investor clients as their own assets grow or as they inherit assets from their parents.

It’s also important to consider setting up your practice for the future. One effective way to do this is getting to truly know the adult children and heirs of your older, current clients. Doing so can create generations of revenue opportunities for your practice. Another approach for growth through your existing client base is to ask for referrals to their extended family and friends. Word-of-mouth referrals are very influential when prospective clients are looking for trusted, financial professionals. One final type of referral comes by leveraging partnerships and Centers of Influence (COI) for financial advisors can include accountants, bankers, attorneys and real estate agents. Learn more about COI referrals.

Providing Wealth management is another opportunity to create repeatable revenue streams that will set your practice up for future success. A wealth manager considers a client’s complete financial picture, offering guidance and recommendations on any decision involving the client’s money or financial assets. Investors simply need more than they once did. Learn more about Wealth Management and how it is become critical to the future of financial advisor. Finally, introducing your clients to different financial models can enhance their experience and lead to your financial advisory’s success. Learn more about financial model-based practices

#3: Attract New Clients through Effective Marketing and Brand Positioning 

“By failing to prepare, you are preparing to fail” – Benjamin Franklin 

While focusing on growth is important, planning for the future is crucial for your marketing success – and nothing is more relevant to our future than technology. In an increasingly digital world, advisors focused on growth need to create a relevant marketing plan that rooted in digital marketing and effectively communicates to the needs of your clients. If you haven’t created a market plan, checkout 6 Steps to Building a Strong Financial Advisor Marketing Plan.

Promoting your firm’s website through search engine channels, such as Search Engine Optimization (SEO), Paid Search, and Local Map listings can help your practice stand out when prospective clients search for trusted financial advisors. Social media usage is increasingly valuable to reach targeted audiences with trusted content and market insights but be mindful of remaining compliant. Digital marketing and advertising requires a commitment of time and budgets, on a consistent basis. If you do not have the expertise or internal resources to manage search engines, social medial, website content or event online advertising, you may want to consider experienced resource such as LPL’s marketing resources. You can also use media to demonstrate your expertise through thought leadership tailored to your key audiences. Staying relevant with active and consistent messaging via email newsletters, online videos, and social media posts and keeping your website fresh are all key to a successful practice that is built for the future and poised for growth.

Growing Your Business

LPL Financial has the resources you need to grow your financial advisor practice. Learn more about our consulting, training, and learning services.

Building a Marketing Plan

Defining your advisor marketing plan can help communicate your brand and grow your business. LPL can provide you with consulting to help.

LPL Business Tools

LPL provides valuable tools to help you run your business. Learn more about how we can support your marketing solutions, business strategy and more.

Disclosures

The views and opinions expressed by LPL Financial Advisor(s) may not be representative of the views of other Financial Advisors and are not indicative of future performance or success. Neither LPL Financial nor the LPL Financial Advisor can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

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