The Pros and Cons of 20 Prospecting Strategies

Pros: It is low cost. It can be done from anywhere. There is global reach.

Cons: This is a manual, personalized activity. Canned messages won't cut it. You need to be engaged and focused over a long period. You need to establish you are not a scammer because social media channels have plenty of them.

2. Search engine optimization.

People have a question. They do an internet search. Your name appears in the result set on the first page. They visit your website. They either contact you though your site or you capture their contact details.

Pros: This is how people do research today. These people have an interest and are seeking a solution. Your firm might pay for SEO services.

Cons: Competition for that first page is high. Your site is at the mercy of Google's ever-changing algorithms, and the rise of artificial intelligence chatbots has crushed search traffic.

3. Referrals.

This has traditionally been most advisors' answer when asked "What's your best source of new clients?"

Pros: Your happy client has done all the work. They identified a friend with a problem, "sold you" on their own and delivered them to your door.

Cons: This is a passive strategy. It's great when it works, but you cannot push it. You cannot call a client and say, "You haven't sent me any referrals lately."

4. Public seminars.

You get invitations in the mail, especially if you live in an upscale neighborhood. Dinner is often served.

Pros: You get people who are interested enough to attend in person. You can meet each prospect and make an impression.

Cons: Seminars are expensive, and time and effort is required to build the audience and fill the room.

5. Networking.

Many advisors belong to networking groups of professionals in different fields. There is an expectation that everyone will provide a steady stream of referrals for the others. The chamber of commerce is one of the earliest examples. Someone observed "You get out of the Chamber what you put in."

Pros: Everyone has the same mission. Everyone knows plenty of other people. The logic is "you give to get."

Cons: It's a lot of work! You need to be constantly finding leads for others. You might find some people are coasting, not putting in the necessary effort.

6. Introductions.

An introduction is like a referral. It is getting in front of the right people without someone preselling them, telling your story in advance.

Pro: You are meeting people with high client potential in a social setting.

Con: You need to eventually transition the conversation from social to business.

7. Cold calling.

Everyone will say they hate it, but people still do it. You personally get calls during dinner, especially if you own real estate. "I represent a local investor. Are you interested in selling your house?"

Pros: It's like playing roulette. Every call is another spin of the wheel with an equal opportunity of turning up a winner. You know it works because the National Do Not Call Registry had to be invented.

Cons: The DNC Registry was invented because people generally find cold sales calls annoying. Call-screening technology means you must dial more numbers to speak to fewer prospects. You get hung up on repeatedly. If you call people on the DNC list, you could get caught, reported and fined.

8. Client/prospect dinners.

You invite a handful of clients to dinner at a nice restaurant. You ask them to bring a friend, "someone you think we might be able to help." Everyone interacts socially.

Pros: Your client has effectively "presold" you as a great advisor. Their guest is interested enough to want to meet you.

Cons: There are clients who will gladly accept a free dinner, but don't bring along a guest. Also, the strategy is expensive.

9. Calling business owners.

This strategy might also include personalized email outreach and direct messaging.

Pro: Business-to-business calls are often exempt from do-not-call restrictions. (Be sure to verify the rules in your state before you do this.)

Cons: The people you want to reach screen their calls. There are gatekeepers, like executive assistants. If you are sending emails or messages, you're competing with dozens of others trying to get your prospects' attention.

10. Speaking to groups.

You might speak at a conference, for example. Unlike a seminar, the host supplies the audience.

Pro: Assembling the audience is often the hardest part. Now it's done for you.

Con: How you follow up (if at all) may be restricted by the host organization.

11. Mailings.

These are often done by surface mail. You get many appeals from charities around Christmas.

Pros: The response rate might be low, but mailings do work. The more you personalize your outreach, the greater the likelihood you will get a response.

Cons: U.S. postage stamps are 78 cents each. Add in the cost of paper, envelopes and time. This strategy becomes expensive for a low response rate.

12. Email campaigns.

Email has grown in popularity because the cost is minimal. With a few clicks, you can reach a list of people who are open to receiving your messages instead of relying on search engines and social media.

Pros: It's cheap, can be done from anywhere — and it works. You probably found this article in a newsletter.

Cons: Your message could end up in a spam folder. Building your mailing list is a marketing endeavor of its own.

13. Buying lists.

This strategy has been around for a long time. Instead of doing your own list-building, buy a list of "qualified leads." If you get real estate calls during dinner, you might wonder if your name has been included on one of these lists.

Pros: Some providers prequalify their lists very carefully. This is usually reflected in the price.

Cons: A list sold to you is likely being sold to plenty of other people in the same profession. The outcome is the people at the other end are getting called constantly.

14. Approaching friends.

This strategy makes sense. If you are well off and successful, it is likely your friends and acquaintances fit the same profile.

Pros: Does everyone know how you help people? Everyone should have the opportunity to say no. These are compelling reasons to use this strategy.

Cons: This can be a long-term strategy. You cannot push or be heavy handed. They control the timetable.

15. Cold walking.

It still exists! If you are doubtful, take notice of the "No Solicitation" signs on the doors of many businesses. This is often done in industrial parks or on main streets with storefronts.

Pro: You are likely to encounter the owner.

Con: It feels like "door-to-door sales," which has a negative reputation.

16. Research mailings.

This is less common in the age of the internet. You work near the headquarters of a major office. You write to the executives or approach them in person. You ask: "Our analysts follow your firm. Would you be interested in seeing those research reports?"

Pros: You are sharing publicly available information. You now have a prospect.

Cons: They might be able to get this information online. You need to get in front of those executives to make your offer.

17. Lead generation.

This an online outgrowth of the previous strategy. You produce something helpful to your prospects — like a research report or basic financial planning checklist — and give it away in exchange for contact information.

Pros: Now you have names for your mailing list. You can offer an asset that appeals your potential client niche. You can collect data in categories like job title that let you segment your marketing efforts.

Cons: Creating a good asset that appeals to your target clients takes research, time and effort. The people who download it might not be ready to hire an advisor. This is not a strategy that works overnight.

18. Walk-ins/call-ins.

If your office is on the main street (or has good parking), prospects might come in off the street. This might be very common for banks.

Pros: They come to you. There is little prep work involved.

Cons: This assignment likely gets made in your office. You might get the opportunity once a month.

19. Newspaper, magazine or web ads.

Local offices might advertise upcoming events, like a seminar. In some cities, free local magazines are given away in coffee shops or other small businesses.

Pros: This is bringing the interested and the curious to you. You do not need to find them.

Cons: How many people read print newspapers or magazines now? If readers see your ad online, is it easy to see or interact with it? They might have an ad blocker.

20. Radio and TV advertising.

Financial services firms sponsor programs on PBS. They might run radio ads for seminars.

Pros: You reach a large audience.

Cons: This can be expensive. The listener or viewer needs to get the contact information and act on it. They need to make the effort.