6 Steps for Advisors to Get More Clients

Marketing is about getting people to know you exist; sales is about courting them to become a client, says Kostick. “Focus on the execution,” he said.

4. Get referrals.

Referrals are one of the best ways to attract new clients, but asking for referrals from current clients can feel awkward, said Steve Tuttle, chief investment officer at Krasney Financial in Mendham, New Jersey, who attended the workshop. Tuttle, whose firm has $600 million-$700 million in assets, said he will now “make sure employees know that referrals are an important goal” so they can incorporate that in dealings with clients. He noted there are also ways to ask for referrals without being too blunt about it such as offering help to a friend or relation of an existing client if the situation presents itself. Kostick recommended that advisors should use such “warm referrals” from strategic partners or current clients as well as social media apps like LinkedIn.

Valerie Haggerty from Laflam and Haggerty Investment Advisers in Southampton, Massachusetts, which has $23 million in assets, said she finds potential new clients from knowing the latest financial circumstances of her existing clients. She’s also their accountant and knows, for example, when a client’s child is graduating from college so she can offer a guide that explains to the new graduate the difference between starting to save for retirement at age 20 or age 30. “Then the client asks, “ ‘Can I send my kid in to talk to you?’ ”

5. Making the connection: be prepared and follow up.

“This is a relationship business,” said Kostick. “Advisors need to cultivate relationships.” To that end, he said advisors need to research potential clients, including checking social media, preparing well for meetings and setting an agenda for meetings. “It’s amazing how many people wing it,” said Kostick. At meetings advisors need to ask good questions, the idea being to learn about the potential client rather than to sell their services. And afterward they need to follow up with a summary letter with a call to action—something they can follow up with a few weeks later, said Kostick.

6. Analyze successes and failures to connect.

“The secret to be really good at business development is to do more of what really works,” said Kostick, who recommends that advisors look back at what worked to get a new client and what didn’t work. The best idea he heard at the conference was from an advisor who categorized those failures as nonqualifiers — those who should not have been included in the pipeline in the first place; and disqualifiers — those who chose to work with another advisor. The firm looked back on intros that led to both.

“There’s always a way to do it better, to provide better service,” said Haggerty.

— Related on ThinkAdvisor:

• The Death of the Rainmaker
• RIA Growth Secret: ‘Create a Story That Sells Itself’
• The Big Secret to Getting Client Referrals—and You’ll Hate It