Here’s Your Lead Generation Machine

Waymire doesn’t think third-party prospecting will go mainstream but that it will continue to capture the attention of advisors who are comfortable with Internet marketing and like it for its sort of passive appeal. “Most of the traditional forms of referral-based marketing are relatively expensive and time-consuming,” he adds. “This way you don’t have to do direct marketing, join the clubs or meet with CPAs. You can just do what you do best: working with your clients.”  

Scott Noyes, a financial advisor for 30 years, founded Noyes Capital Management in New Vernon, N.J., nine years ago. He serves 54 families representing $65 million in assets under management. One of his first challenges was answering the question: How will prospects find me? So in addition to personal networking, Noyes, 56, turned to Paladin and a couple of other lead generation services.

“When I look back at where my clients came from, 30% probably came through Paladin or someone like Paladin. When you do it over time, it adds up. If I get one referral a month I’m pleased. At least you are getting a warm pre-qualified lead instead of looking for a phone call,” says Noyes, who has a $500,000 minimum. “It’s not just an automatic handing you of clients. You’ve got to work for them and compete. But it does get you in the door. How else do you get in the door? Mailings for me haven’t worked at all. You can do seminars but that is buying people a lot of meals for, hopefully, one live one. It’s not a be-all, end-all, but it’s helpful.”

Emerging Models

Three other services that are getting a lot of buzz: AdviceIQ, Boulevard R and, because of its pedigree and price point, Advizent. Each could not be more different from the next.

Since launching in the fall of 2011, AdviceIQ has endorsed 2,400 advisors and reached out to consumers by way, of all things, old-fashioned journalism. The firm nationally distributes three compliance-approved articles a day written mostly by member advisors. It also ranks advisors. AdviceIQ’s Stuller calls it public relations and digital branding that will help to convert prospects while serving as a reputation management tool when it comes to existing clients.

“It accelerates what happens in nature,” he says. “Investors need to be educated and drawn in. Our model is to go where the eyeballs are. When prospective clients hear of you and see you on independent journalism sites (like Morningstar, Online Investor and Motley Fool) it will accelerate that process of hiring you.”

AdviceIQ costs $995 a year and, notably, vetted advisors don’t have to contribute news articles in order to use the “AdviceIQ Certified” tagline. They do, however, get the benefit of using archived articles royalty-free and their contact information also pops up, thanks to geo-charting technology, when a consumer in search of an advisor referral throws out his or her zip code.

Boulevard R, meanwhile, launched this past spring a tablet version of AMP, a financial planning software tool that helps advisors quickly engage and qualify prospects. In this case, the advisor does the initial legwork by staging a presentation or event. The advisor, presenting to say 10 couples, would give each one an iPad or Android tablet and have them create, basically, a mini financial plan. The outcome?

“Now the advisor has 20 highly qualified individuals who are already engaged. The tool provides a lot of intelligence,” notes Matt Iverson, a director of Boulevard R. “If you can engage people, whoever attended that meeting is much more inclined to follow up with the advisor. It’s not rocket science. The software is pretty complex but the whole interaction process is really simple.”    

Boulevard R charges $97 a month for AMP. Apple’s leasing arm, according to Iverson, rents out 10 iPads for $160 a month. “I think the financial services industry is always a little slow to adopt. But those advisors who are willing to embrace technology in the next five years can really enhance how they engage people,” he adds. “Costs will continue to drop and you’ll be able to do it for larger and larger groups. Imagine getting in front of a workforce of 50 people. It’s a great opportunity to engage prospects in a new way.”

With Advizent, Goldman hopes to take referral-gathering into uncharted territory. The firm’s third-party seal of approval will be subject to the strictest of standards, and advisors will be audited annually. On-site audits will take place every other year. On average, Advizent is looking for million-dollar clients. Membership ranges from $25,000 to $100,000.

“The most important thing you need to be able to say to the consumer is that the advisors you are referring truly are better. What we are doing is creating a trusted brand with standards that need to be relevant and understood by the consumer,” Goldman says. “Our mission is to empower consumers through education and access to true fiduciary service.”

Advizent will use tools like search engine optimization, social media and Web advertising to reach consumers as part of its public relations campaign.

“This isn’t just a simple website we’re throwing up. We will concierge the consumer the whole way through—connecting them with the right advisor and making the first appointment. That’s what investors want,” he adds. “Not much has actually happened in our industry in terms of creating new clients ever. It’s pretty much been hand to hand combat. We believe there are consumers out there, both affluent and high net worth, who are interested in a new approach.”