Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Survey says: referrals!

Your article was successfully shared with the contacts you provided.

Knowing how to generate a continuous flow of high-quality referrals is among the most important marketing challenges any advisor faces. The results of a 2012 survey of financial advisors by research firm CEG Worldwide offer some interesting insights on the matter:

The top five sources of professional referrals:

  1. Accountants: 68 percent
  2. Estate planning attorneys: 61 percent
  3. Life insurance specialists: 35 percent
  4. Mortgage brokers: 29 percent
  5. Personal property and casualty agents: 12 percent

What were the sources of all referrals?

  • Professional connections: 54.2 percent
  • Clients: 30.1 percent
  • Seminars/conferences: 13.5 percent

Number of client referrals received each year (by advisor income group):

Moderate-income advisors:

  • 26.7 percent received 3-5 referrals
  • 12.3 percent received 6+ referrals

Middle-income advisors:

  • 44.0 percent received 3-5 referrals
  • 11.2 percent received 6+ referrals

High-income advisors:

  • 23.1 percent received 3-5 referrals
  • 29.2 percent received 6+ referrals

How many clients did respondents have?

Moderate-income advisors:

  • 21.2 percent had 150-299 clients
  • 20.0 percent had 300+ clients

Middle-income advisors:

  • 30.4 percent had 150-299 clients
  • 33.2 percent had 300+ clients

High-income advisors:

  • 35.1 percent had 150-299 clients
  • 36.5 percent had 300+ clients

It may come as no surprise that the most successful advisors had the greatest number of clients and referrals, giving them the greatest likelihood of falling into the high-income ($500,000 or more per year) group.

Sign up for The Lead and get a new tip in your inbox every day! More tips:

Nick Ray is a business coach who specializes in working with financial services professionals. He is the author of There’s More to Selling than Making the Sale as well as a workbook on target marketing. He can be reached at [email protected].


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.