This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Still Cold Calling? How Advisors Land New Business

By Hal M. Bundrick

NEW YORK ( MainStreet)--Ask that ripe broker down the hall how he built his business and you may get a grunt and a muttered, "Smiling and dialing." While cold calling has fallen from favor for most modern advisors prospecting for clients, making first contact still accounts for 10% of new business gained by financial consultants, according to a Spectrem Group survey.

Among younger investors, those under the age of 44, 19% were looking for a specific investment product and then hired an advisor that specialized in that product, while 13% conducted their search online and found their advisor from a website profile.

Most clients still find their next advisor through referrals. The wealthiest investors, those with $25 million or more in assets, rely on friends and family for referrals (42%) while 31% said they utilized a key referral from a business associate. 14% reported that they conducted their own search, 13% received a referral from another advisor, and 10% said the advisor made first contact.

Among high net worth investors with a bit less to invest ($5 million to $25 million), nearly half (48%) of respondents said references from friends and family helped them find their financial advisor.

Other leads to their new financial consultant included general advertising, an ad or article in a financial publication, a website that provided detailed information on advisors as well as seminars or special events.

Once retaining a new advisor, there is a generational distinction in how they are utilized. Among respondents to the survey from the World War II age group, 41% said their financial decisions were either advisor assisted or completely dependent upon the advisor. Baby boomers were at 35% advisor-assisted or completely dependent, while Millennials were only 27% mostly reliant on an advisor.

--Written by Hal M. Bundrick

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs