Financial advisors grow through client acquisition and retention. Yet, many advisors often make missteps in the sales and marketing process. This can limit their ability to close new relationships and increase their assets under management. Understanding the five common sales and marketing missteps advisors make can help you refine your approach and build a more sustainable, predictable business.

1. Overcomplicating Your Value Proposition

The first big misstep in the sales and marketing process is that financial advisors often struggle to articulate their value proposition in a clear, compelling way. They may use industry jargon or technical terms, leaving prospective clients confused about the outcomes they can gain.

For instance, using words such as wealth management and wealth distribution are sophisticated concepts, yet most clients in the $2M to $5M space or less don’t see themselves as wealthy. They speak about their money, their finances, financial security, their lifestyle, or their legacy.

You don’t want a potential client to de-select themselves out of the process. They may feel it is too expensive or don’t perceive themselves as having enough assets to work with you. A complex or unclear description of your value can deter prospects from further engaging if they feel you aren’t relating to them.

2. Treating Potential Clients and Prospects as Leads vs. People

The second big misstep in the sales and marketing process is focusing solely on production or reaching a revenue goal. Financial advisors tend to focus on closing a transaction, thus working under pressure. They may unintentionally view prospects as leads or potential accounts and forget that they are people.

Sales and marketing are as much about opening a relationship and delivering an enhanced client experience as it is about closing a deal or generating assets. This requires you to communicate from the client’s point of view and ask deeper questions that engage people and create curiosity to move forward with you.

3. Not Cultivating a Target Market

A third big sales and marketing misstep many advisors make is failing to cultivate a niche or target market – even if you can only spend 10% to 20% of your time on it. Many advisors adopt a “serve everyone” mentality, hoping to attract a wide audience. However, this approach can dilute their message. Without a clear target market, your efforts can come across as generic or may not resonate with any specific group.

To avoid this misstep, advisors should consider a niche that aligns with their expertise and interests. For example, some advisors specialize in serving veterinarians, military veterans, or executives in a particular corporation. This allows you to address the unique needs and challenges of a defined group of people who network with each other. This ultimately helps you increase your visibility and closing ratios.

4. Sales and Marketing Follow-Up

The fourth big sales and marketing misstep is that many financial advisors invest significant time and resources in attracting potential clients but fail to follow up effectively. Whether it’s the lack of a structured process, or not wanting to come off as “salesy” or pushy, neglecting the follow-up can result in lost opportunities.

Successful follow-up involves leaning into the client’s desired outcomes to keep them engaged. “Checking in” or “following up” messages may remind the client about your process, but in reality, it gives the prospect more time to duck and dodge.

When you need to circle back with someone, remind them of the outcomes they desire and the things you will do on their behalf. Be clear on the next steps, make them as simple as possible, and communicate the value they will gain if they move forward with the next action. Position yourself as helping them fulfill their desired outcomes vs. pressuring them to close.

5. Not Using Trial Closes

The fifth big sales and marketing misstep is not using trial closes throughout the sales and client discovery process. Trial closes are crucial in determining if your approach is on track. They are used to uncover any potential objections that may be lingering in a prospect’s or client’s mind. Trial closes include questions such as, “If I were to design a solution within your budget is there anything that would prevent you from moving forward?” Or, “Is there anything you need to see or hear before moving forward?” Or, “If I were to design solutions for you and your family, are you obligated to do business with someone else?”

Trial closes help you gauge if the conversation is resonating with the prospect. If you are not on the right track, you have an opportunity to redirect.

By identifying and addressing common sales and marketing missteps, advisors can increase their conversation and closing ratios, create curiosity with prospects, and ultimately grow their business. In this ever-evolving industry, fine-tuning your approach is the key to long-term success.