Referrals vs. Seminar Marketing: An Advisor's Success Story

In the competitive world of financial advising, the choice of growth strategy is pivotal to an advisor's success. Two primary approaches are commonly used: relying on referrals or implementing marketing and prospecting strategies. In this blog, we'll explore the pros and cons of these approaches, with a focus on choosing between referral marketing and seminar marketing to fuel financial advisory growth. We'll also highlight the remarkable journey of Kurt Stahl, a small firm owner who, against the odds, achieved significant growth by exclusively using seminar and webinar marketing through AcquireUp.

Relying on Referrals vs. Seminar Marketing: A Choice for Financial Advisors

Financial advisors face a fundamental choice when it comes to growing their practices: relying on referrals or leveraging marketing and prospecting strategies. Let's delve into the pros and cons of each, and how these strategies impact the growth of a financial advisory business.

Relying on Referrals

Many financial advisors opt for the referral-based growth model, and there are good reasons for this. Referrals are often seen as a testament to your expertise and the quality of service you provide.

Pros:

• Trust and Credibility: Referrals come from satisfied clients, establishing trust and credibility right from the start.

• Cost-Efficient: You don't need to spend much on marketing or lead generation, making it a cost-effective approach.

• High-Quality Leads: Referred clients may have similar financial needs and goals as your existing clients.

Cons:

• Limited Growth: Relying solely on referrals may limit the rate at which you can expand your business.

• Vulnerability to Economic Cycles: A downturn in the economy can reduce the number of referrals an advisor receives.

• Lack of Control: Financial advisors have no control over when referrals will come in, making it challenging to proactively drive growth.

• Inconsistent Lead Quality: Not all referrals may align with your ideal client, potentially leading to less suitable prospects.

• Hope Is Not a Growth Strategy: Ultimately, relying on referrals to grow your business is more of a hope than a strategy for growth.

Seminar Marketing

Financial advisors who employ marketing and prospecting strategies often use educational seminars and webinars to connect with and engage prospective clients. These events provide an opportunity to showcase your knowledge and attract individuals interested in financial topics.

Pros:

• Scalability: Marketing efforts, including seminars and webinars, can reach a broader audience and facilitate faster growth.

• New Prospects: This approach allows you to continually attract new prospects, even in slow referral periods.

• Education-Based Trust: Educational content establishes your authority and builds trust, as prospects appreciate your expertise.

• Control Over Growth: Hosting seminars or webinars provides control over when you bring in qualified prospects, enabling you to take proactive steps toward growth.

Cons:

• Higher Costs: Marketing and prospecting strategies can be more expensive compared to relying on referrals.

• Initial Effort: It may take time to establish your marketing and education initiatives and see results.

• Varied Lead Quality: Not all attendees may become clients, leading to mixed-quality leads.

The Kurt Stahl Case Study: Seminar Marketing in Action

Kurt Stahl of GulfCoast Financial started his career in finance working under a Certified Financial Planner. However, after two years, he realized that it wasn't the right path for him. His ambition led him to set up his own financial advisory firm in Florida. By 2017, he was facing the challenge that many advisors encounter – finding clients in a new location.

Turning to AcquireUp, the industry leader in workshop marketing, Kurt exclusively relied on their seminar and webinar programs to fuel the growth of his business. Notably, he avoided using any other forms of marketing to test the effectiveness of this approach.

Kurt's Seminar Marketing Success: The Numbers

Over the last six years, Kurt has consistently invested an average of $53,000 annually in AcquireUp's seminar and webinar marketing programs. Here are his yearly averages:

• $53,000 annual marketing spend

• Average of 23 workshops hosted per year

• Average of 289 workshop attendees per year

• Average of 145 appointments booked per year

• Average of 122 appointments held per year

• Average of 34 new clients per year (excluding referrals from clients acquired through workshops)

Kurt's Remarkable Growth: A Chart of Success

The real testament to the effectiveness of seminar marketing is the significant growth that Kurt's firm has experienced. Below is a chart outlining his total production year to date:

• 2017: $4 million

• 2018: $10 million

• 2019: $19 million

• 2020: $12 million

• 2021: $56 million

• 2022: $36 million

• 2023: $43 million

As we can see, the growth has been both substantial and consistent, with Kurt's firm experiencing a remarkable 975% increase in AUM from 2017 to 2023.

What Can We Learn from Kurt's Journey?

Kurt's journey illustrates the potential of seminar and webinar marketing to transform the fortunes of a financial advisory firm. Here are some key takeaways:

• Focused Marketing: By concentrating exclusively on seminar and webinar marketing, Kurt maximized his investment and reaped substantial rewards.

• Consistency Pays: Consistency in hosting workshops and webinars allowed Kurt to establish a solid presence in his target market, ensuring a steady stream of leads and new clients.

• Referral Snowball Effect: Kurt's workshops not only attracted new clients but also generated referrals from the clients he acquired through workshops.

• Adaptability: Regardless of the size of your firm, workshop marketing can be a scalable and flexible strategy to attract new clients and foster business growth.

• AcquireUp's Contribution: Kurt's success would not have been possible without the support of AcquireUp's workshop marketing programs.

In conclusion, Kurt Stahl's remarkable journey from a small startup in 2017 to a thriving financial advisory firm generating over $43 million in assets under management in 2023 demonstrates the potential of seminar and webinar marketing for financial advisors. The numbers don't lie, and they tell a story of consistent growth, adaptability, and a focused approach. In a world where referrals and marketing are both crucial, the seminar approach is a game-changer.