June 2010
Wasted Time. Wasted Money. Wasted Hope.
Hail Mary marketing strategies almost guaranteed to fail. Part 1
By Peter Montoya
Almost daily, Financial Advisors adopt marketing tactics that they hope will make them millions – tactics requiring as little effort as possible. Most advisors are in quite a quandary: they either hate or are completely ineffective at marketing AND they also realize that marketing is absolutely critical to their success. Typically, they neglect marketing until the last minute (the way a teenager procrastinates over a homework assignment) and then they look for a short cut.
The following strategies are just about guaranteed to fail. I’m sure that you probably know some “guy” somewhere who used one of these strategies to build a million-dollar practice – but I assure you it was the exception, not the rule.
Direct Mail for Lead Generation
Logic: You’ve received a hundred emails promising you “Million-Dollar Leads”. What’s the harm in buying some leads and mailing them all a letter? After all, “if I only get one client out of it, it’ll be worth it.”
Why It Doesn’t Work: First, at best the list might be 50% to 80% accurate. Second, because of modern-day “Do Not Call” restrictions, you can’t call them – which is considerably more effective (and less expensive) than direct mail. Third, FINRA advertising rules make it very difficult to create a compelling message. In order to have an effective direct mail campaign, you have to market a product (not a service), and the product must have a demonstrable benefit…like a guaranteed return. That is clearly not going to fly.
Advertising Key Words
Logic: “I’ll secure a really interesting domain like denver401k.com or rolloverspecialists.com, I’ll buy some Google Ad Words and I’ll only have to pay a couple bucks for every lead that comes in. If I only get one client out of it, it’ll be worth it.”
Why It Doesn’t Work: You’re hoping to find wealthy investors ($200k+) who are sophisticated enough to use the web, but too unsophisticated to ask friends or professionals for a referral to a financial advisor. I wouldn’t bet on finding them.
Appointment Generating Services
Logic: You receive a phone call from an “Appointment Generating Service” – they promise to call qualified investors who are not on the “Do Not Call” lists, interest them in your service, and schedule an appointment in your office. “If I only get one client out of it, it’ll be worth it.”
Why It Doesn’t Work: What planet are you living on? 72% of all Americans are on the “National Do Not Call Registry”, and I’m willing to bet that the other 28% are probably not very wealthy or smart…otherwise they would have been smart enough to visit www.donotcall.gov to add their phone number. Also, what makes you think that a $12-per-hour telemarketer can build rapport and confidence with a high net worth investor?
Yellow Pages Advertising
Logic: “I’ve gotta do something…and all these other Financial Advisors are listed in there…someone must be calling on these people. If I only get one client out of it, it’ll be worth it.”
Why It Doesn’t Work: I’m a little unusual, as I haven’t looked in the Yellow Pages in over 4 years. Before that, I opened up my local Yellow Pages about once a year. Traditional Yellow Pages advertising is plummeting. Online advertising thru Google Local, YellowPages.com, etc., is accelerating because sophisticated, wealthy people are more likely to search online than browse through the Yellow Pages. I’m sure that 1 of 1,000 Financial Advisors can share how they got a $500,000 senior from a Yellow Pages ad, but I think your odds of winning the lottery are probably better.
When I provide marketing advice, I suggest methods that have worked for the majority of advisors. I am quick to steer advisors away from marketing that rarely works, marketing that amounts to burnt money.
If you’d like to lose money or at least not generate any new business, try one of the marketing strategies above. I can’t guarantee it, but there’s an excellent chance that they won’t work well or work at all.
Forunately, you have an alternative. Instead of marketing to the random, focus and direct your marketing effort to the investors who can potentially benefit the most from your services. If you touch base in a polite recurring way – a way that adds value as you promote your own – you will take a big step forward in your marketing.
© 2010 Peter Montoya Inc.
Peter Montoya runs a marketing firm specializing in Financial Service Professionals and spends about 100 days a year traveling the country speaking on marketing, branding and client acquisition. You can learn more about his services at www.PeterMontoya.com, (888) 730-5300 or email him at PeterMontoya@PeterMontoya.com He’ll probably e-mail you back … he loves communicating with his clients.