How financial advisors can stand out in the crowd

In today’s crowded financial advisory marketplace, many financial advisors know that to attract and maintain clients, it is critical for them to provide skills and services that help them stand out from the rest of the pack. Here are a few methods that advisors can use to differentiate themselves, drive business and grow their financial practices.

According to a survey by InspereX Pulse, to set themselves apart from other financial advisors, 72% of respondents said they use custom portfolios instead of models for their clients. Outside of their client relationships, 31% of advisors also said that financial planning strategies differentiate their practice, and 21% said they use customized solutions to stand out. Only 3% said that portfolio performance sets them apart, and 26% said that client relationships are their only differentiator.

In addition to the survey, two financial professionals shared some of the tactics they use to differentiate themselves from other advisors. The first advisor is MDRT member Tom Levasseur, founding principal, The Beacon Retirement Group, and owner of multiple Top of the Table and Court of the Table qualifications. Levasseur said that he has been operating in the financial services industry for almost 40 years and he holds the Million Dollar Round Table directly responsible for whatever success he has had in the profession. “It has been my “north star,” and the fellow members I have met and worked with on behalf of MDRT are among my closest friends,” he said.

In the early 1990s, Levasseur said that he had the good fortune to have listened to the late great Jim Rohn speak at an MDRT meeting. Rohn’s message, he said, was: “Success is not something you can achieve. Success is something you attract by the person you become.”

The most fundamental building block of success in financial services is prospecting, Levasseur pointed out. “If I have a “secret sauce” that allows me to be effective, it’s that I have made myself “attractive” in my community, sincerely helped as many people and organizations as I could to grow and have focused on ‘adding value to the lives of others,’” he said.

The Bucket Plan philosophy

The second advisor is another MDRT member, Jason L. Smith, with JL Smith Holistic Wealth Management. Smith said that their team at JL Smith utilizes The Bucket Plan philosophy to differentiate themselves and enhance client service by simplifying discussions around complex financial concepts. The Bucket Plan divides a client’s assets into three distinct “buckets” (Now, Soon, and Later) based on their time horizon and purpose, he explained.

“The bucket approach helps clients stick to their investment strategy during market volatility – when their short-term needs are secured, they’re less likely to react emotionally to market fluctuations, avoiding undue stress,” he said. “This method enhances communication, fosters deeper client relationships, and ultimately leads to more effective and engaging financial planning.”

Ways to win business

The InspereX survey also shared some information that is always of interest to all advisors—how to acquire new clients. According to 79% of respondents to the survey, new client acquisition in 2024 is being driven by gaining referrals without asking.
Other ways in which advisors are winning business this year include:

• Asking for referrals from clients (39%)
• Networking (38%)
• Client appreciation events (24%)
• Educational seminars or workshops (18%)

And what may come as a surprise to some advisors, the survey also said that digital-marketing techniques rank at the bottom of the list of strategies that survey respondents said they have used for client acquisition:

• LinkedIn: 7%
• Facebook: 5%
• Social media advertisements: 4%
• Direct mail: 3%
• Search engine optimization: 2%
• Google Ads: 2%

Red Zone Marketing conducted the pulse survey on behalf of InspereX from July 8-15, 2024, among 487 financial advisors who work at independent broker-dealers, RIAs, banks, regional firms and wire houses. During the survey period, the S&P 500 reached a high of 5,666.94 and closed at 5,631.22 on July 15.

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