Marketing is an essential linchpin for any financial practice keen on nurturing steady growth. Amidst the myriad of considerations, the overriding challenge lies in ascertaining the optimal budget. Various dynamics come into play, including firm size, chosen marketing strategy, and the specific channels earmarked for targeting.
Gleaning insights from the marketing strategies and budgets of fellow advisors can be instructive. As per a study by Broadridge, the average advisor earmarked $17,400 for marketing in 2022. Breaking it down, Registered Investment Advisors (RIAs) had an average expenditure of $27,800, whereas independent broker-dealers allocated $9,700. In terms of efficacy, the study revealed that firms were onboarding an average of 23 clients annually, pegging the cost of acquisition at $743 per client. Noteworthy is the considerable variability, with some reporting a sub-$250 spend per client, while others scaled above $2,000 per client. The survey also illuminated that 30% of advisors are aiming to augment their marketing budget, while just 2% are contemplating trimming expenses.
For seasoned advisors, the general rule of thumb stipulates a marketing budget falling anywhere between 1% and 10% of the yearly revenue. Marketing is an evolutionary voyage, necessitating periodic evaluation of expenditure effectiveness, and the efficacy of diverse tactics concerning desired outcomes such as lead generation, prospect identification, and brand fortification.
Finsum: Unveiling the key to sustained growth for advisors – establishing and structuring a marketing budget. Here’s an in-depth look at the pivotal factors to ponder and an insight into how fellow advisors are maneuvering this terrain.
- advisors
- client
- onboarding
- wealth management
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