A recent survey showed that 70% of advisors plan to spend less than $1,000 a month on marketing. Even as 99% of advisors say they need to improve at least one of their marketing practices.
Another indicator of advisors’ troubles with marketing is expectations:
- 52% of advisors expect 20 new clients from marketing of $1,000 to $2,000
- Only 17% of advisors would consider an investment of $1,000 to $2,000 a success if it garnered less than 11 new clients
Excuse me as I begin my tirade… ARE THEY FRIGGIN’ CRAZY!!!!!!!!!
What is the average commission on a new client? Geez! Even a $25,000 investment at 4% is $1,000. And I hope most of you aren’t accepting clients with less than $25,000 minimums or you have more problems than marketing.
If you brought in two crappy $25,000 accounts you’ve made $2,000. On a $1,000 marketing investment…now for you financial professionals out there…what kind of return is that on investment?
100%. How long did it take you to get it? A month (at most).
Again, you financial professionals out there…what is the annual compounded return on a 100% per month? That number is too high for me to calculate. Anybody able to give it to me?
How much would you invest in an investment with that kind of return? I’d mortgage my house! Heck, I’d mortgage my mother’s house!
And yet, only 17% of advisors would think a $1,000 investment in marketing yielding 11 new clients is a success:
11 crappy $25,000 accounts at 4% commission = $11,000 in commission
$1,000 marketing investment returns AT A MINIMUM $11,000 in commission and only 17% of advisors would think that is a successful marketing campaign.
With the math and investment skills of the remaining 83% that didn’t think that was successful…it would be safe to say, I would choose one of those 17% as my financial advisor.
Guys and gals, you do the math on your clients’ investment accounts. Why not do it on your own investment…MARKETING!
If you invest $100 and you make back $140 in a month, what should you do? Take the $140 and reinvest and make $196…then $274…then $383…then $537…$751 just 6 months later. Take something that is working and keep investing more in it!
Marketing only costs you money when you make less than you spent. Otherwise, invest…invest…invest!