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.