The Wrong Question to Ask About Marketing
October 21, 2014
by Mandy Fisher
Khrom Capital was up 32.5% gross and 24.5% net for the first quarter, outperforming the Russell 2000's 21.2% gain and the S&P 500's 6.2% increase. The fund has an annualized return of 21.6% gross and 16.5% net since inception. The total gross return since inception is 1,194%. Q1 2021 hedge fund letters, conferences and more Read More
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When confronted with a marketing decision, the first thing most advisors ask how much it will cost. But that’s the wrong question.
Marketing does not have to ruin your budget, but it does take money to effectively market your business. As a marketer, I will be the first to tell you that there are no guarantees with marketing. You could execute the exact same campaign that brought another financial advisor 20 new clients and not get one lead from it. There isn’t a universal approach, because there are too many variables at play.
This leaves many advisors wondering whether marketing is worth the cost.
But marketingisworth the cost. Here’s why an investment in marketing is a smart one and the real question financial advisors should be asking.
Without marketing, your firm won’t grow
Imagine that you decide to drop all your firm’s marketing efforts today – no more website, marketing brochures, social media or community sponsorships. Picture what your firm would look like 10 years from now.
My prediction: It would look the same as it does today.
It might even look worse.
If you’re lucky, you will have a little organic growth from a few client referrals, which will make up for any clients you lose. In a worst-case scenario, your firm will be doing a lot worse than today, since you wouldn’t have made any efforts to make up for the natural attrition of clients.
In today’s competitive environment, marketing is an essential component of a strong business plan. It’s the way that you let people know about you, your firm and the services you have to offer. Most advisory firms want to attract more clients, yet few firms can achieve the results they want unless they make a concerted effort to let people know about their business. Savvy firm owners realize that they cannot survive without marketing. Competition is fierce, and it is too easy for quiet voices to get lost in the noise.
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