How do most advisors meet new clients? I’m sure that when you ask advisors this question that most will respond “through referrals”. Similarly when you asked wealthy investors (in this case, those with more than $25 million of net worth – although the trends are similar regardless of wealth) 43 percent will indicate they found their advisor via a referral from a friend or family member. Younger investors are more likely to indicate they found their advisor from a friend or family member than older investors (47 percent vs. 40 percent). And 80 percent of these wealthy investors indicate they would refer their advisor to friend – including 86 percent of the youngest investors.
- Thirty nine percent met their advisor because he or she was affiliated with the investment banker involved with their firm … this percentage was higher for Millennials in which the number jumped to 53 percent.
- Twenty-three percent found their advisor because the advisor reached out to them. Therefore, cold calling is not a waste of time.
- Nine percent saw an advertisement for the advisor and reached out to the advisor.
- More than a third received a referral from a business associate.