Looking for new ways to attract clients & grow your business? Explore why financial advisors should think twice before buying leads.
When something seems too good to be true, chances are it probably is. Financial advisors play a critical role in helping individuals and businesses manage their finances and investments. As a financial advisor, you are continuously looking for new ways to attract clients and grow your business.
One method that some financial advisors use is purchasing leads. However, we like to say that purchasing leads is essentially like playing the lottery. Purchasing leads can be a risky and ineffective lead generation strategy. In this blog, we’ll explore why financial advisors should think twice before buying a list of leads.
First, let’s define what we mean by purchasing leads. When you purchase leads, you are essentially buying contact information for individuals who have expressed interest in financial planning or investment services. These leads are often generated through various marketing channels, such as online forms, surveys or contests. The idea is that by purchasing these leads, financial advisors can quickly expand their client base and generate more business.
However, there are several reasons why purchasing leads is a risky idea:
If purchasing leads is not the best way to acquire new clients, what can financial advisors do instead? The answer is simple: focus on building relationships. We like to use this as a general rule, names or contacts can be purchased, leads cannot. A lead is earned. Building relationships with potential clients takes time and effort, but it’s a much more effective way to generate business in the long run.
While it may be tempting to purchase leads as a quick way to grow your business, it’s not a sustainable or effective strategy for financial advisors. Instead, focus on investing your time and sources in cultivating relationships with potential clients through valuable content, in-person events, networking and referrals. By doing so, you’ll establish yourself as a trusted advisor and generate business for years to come.