Financial Advisor Marketing Podcast
How Financial Advisors Actually Get Clients, Backed By Data (With Michael Kitces)
Feb 10, 2025
In this discussion, Michael Kitces, the Chief Financial Planning Nerd at Kitces.com, reveals key insights from his recent marketing study for financial advisors. He shares how advisors can reduce client acquisition costs from up to $10,000 and avoid the 'anti-scale' trap that threatens profitability. Kitces emphasizes the 'Transfer of Trust' technique to expedite client onboarding and highlights proven marketing strategies backed by data. Valuable tips on leveraging personal strengths and the importance of storytelling in client relationships round out this must-listen conversation.
53:33
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Financial advisors often miscalculate marketing expenses, leading to client acquisition costs that can surge as high as 10% of revenue.
- As advisory firms grow, paradoxically escalating client acquisition costs challenge the expected economies of scale, hindering overall growth.
Deep dives
Understanding Marketing Costs for Financial Advisors
Many financial advisors underestimate the true cost of their marketing efforts. The average advisor typically allocates only 1-2% of their revenue to marketing, which may not represent the full picture of their expenses. When accounting for the time spent on business development, which often includes around 20% of advisor compensation, the actual cost of acquiring new clients can significantly increase, reaching 10% of their total revenue. This insight highlights the need for advisors to assess their marketing strategies and spending to ensure they are effectively and efficiently attracting new clients.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
