Many Next Gen advisors are realizing they can’t simply rely on senior colleagues’ books of business to build their own growth paths in the financial services industry.
A recent DeVoe report highlighted the industry’s challenges with people development and Next Gen advisor retention, pointing out how concerning that is because the “backbone of every successful RIA is its talent.”
We spoke with experts at three advisory firms: Jason Del Col, Executive Vice President, Advisory Services at Modern Wealth Management; David Weiner, Chief Growth Officer at Savvy Wealth; and Matt Ackermann, Chief Content Officer at Integrated Partners.
They provided tips on how Next Gen advisors and others in the industry can overcome some of the main challenges standing in the way of successfully building and growing an advisory business.
We asked them: How can young talent build independent client bases and chart their own paths to growth with lead generation strategies, advisor-first technology and business building tools?
Each of them focused on one aspect of the question. Their responses follow.
Jason Del Col, Executive Vice President, Advisory Services, Modern Wealth Management
Lead Generation
For Next Gen advisors, breaking into the industry can feel daunting, especially without following in a senior advisor’s footsteps. Client expectations have shifted and the old “country club lead” is disappearing as clients gain more choice and exposure to advisor options.
To succeed, new advisors should focus on three meaningful pivots:
Advisors must deliver a wider breadth of integrated services – not just allocate assets – to be competitive. Acting as a “shepherd to services” across a client’s financial life will be essential. Clients will expect a “high-net-worth services lite” experience: a one-stop shop rather than the disjointed experience many advisors still deliver. Those only focused on asset management will be easier to outpace.
Advisors must find a niche and get out there. Building relationships, staying active in the community and communicating clearly is important. Too many advisors try to build a business in their bedroom slippers and are failing. Targeting specific client niches and speaking the language of specific professions or retirement needs can also be a competitive advantage.
Advisors must be thoughtful about the firm or platform they align with. As clients increasingly want a one-stop shop, the wrong affiliation could limit growth dramatically. Choose a platform and brand that represents where you and your clients are headed – and one you are proud of – or risk being outpaced and left behind.
David Weiner, Chief Growth Officer, Savvy Wealth
Advisor-First Technology
Next Gen advisors can’t afford to wait for senior colleagues’ books to trickle down. They need to take control of their own future by strategically building their own client base. This starts with a focus on lead generation through social media and other digital avenues, niche positioning to attract the right clients, and developing thought leadership to stand out to this base of clients.
With this as a foundation, advisor-focused technology can be introduced to accelerate client acquisition and retention. Tools that integrate CRM, marketing automation and AI functionality allow young advisors to prospect smarter, scale outreach and deepen engagement without being buried in manual tasks.
Choosing the right RIA partner is also critical. Advisors should look to third parties that can offer tools and services that provide back-office and marketing support, as well as technology that can help cut back on tedious and time-consuming processes. This can enable them to focus on what truly drives growth: building client relationships and expanding their reach.
Ultimately, having a growth mindset is the most important factor. Advisors who act like entrepreneurs by trying different acquisition channels, tracking ROI and refining their approach will be those able to build independent, resilient practices.
Matt Ackermann, Chief Content Officer, Integrated Partners
Business Building Tools
Advisors should use AI as a prospecting tool, leveraging it to find their target client base and then crafting personalized emails for outreach. Marketing should be hyper-personalized, especially as advisors look to engage with Next Gen clients. Advisors should be targeted and specific in their outreach. For example, our new AI-enabled dashboard provides advisors planning-based notifications that allow them to engage directly with clients as they move through each stage of their life.
This is where Next Gen advisors have a unique advantage. They are native to social media, grew up online and understand that marketing is all about storytelling and building a brand that is both empathetic and thoughtful.
Then, target your core audience – such as High Earners Not Rich Yet (HENRYs) and G2 clients – and carefully track the results. Remember: If you can’t measure it, you can’t gauge if your effort is worth it.
Your time is your most valuable asset, no matter what generation you belong to.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
