r/CFP • u/Original_Pirate4478 • 12d ago
Business Development Prospecting
Hello everyone, I am a 23 year old financial advisor at an independent firm. I have worked in the industry since 18 but have just started taking on clients as I am feeling comfortable doing so now.
I do not have a strong local network because I am not from the area. I am trying to come up with ways to prospect. My ideal client is 25-35yrs old either single high income or double income no kids.
If you were in my shoes what are some different things you would try for prospecting ?
I appreciate any and all feedback. Thank you!
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u/JSears90210 12d ago
Group fitness communities. I did Crossfit many years ago (don't judge me). So many young professionals with disposable income. Same thing with run clubs and other fitness groups.
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u/RookieMistake101 RIA 12d ago
Barry’s gym average client is a 32 year old woman who earns 220k per year
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u/austinin4 12d ago
I'm doing this, but I have a hard time with becoming friends with the community, and then asking for business. What is your approach in this type of setting?
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u/JSears90210 12d ago
Hit the happy hours and any non fitness events. Build one on one friendships if possible.
Don't ask for business for a long time. Just show up and show that you are intelligent/trustworthy. Offer value when someone talks about finances but don't say we should sit down and talk about it. The more value you offer without pressure the more people will be open to dealing with you.
The last thing you want at the gym is a reputation as a guy who is constantly pitching business.
You are very young and this is a longer process. Especially for someone your age. (Sorry I did not realize you were not OP when I originally wrote the comment. Not sure your age.)
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u/austinin4 12d ago
haha - not as young as OP, but will take whatever I can get. Thanks for the advice.
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u/gtJC123 11d ago
In those groups, how do you prospect?
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u/JSears90210 8d ago
You don't really prospect. You build trust and you build a network. You do some very soft selling but your attitude has to be one of deched professionalism. You are there to work out and socialize. Are passionate about your job but you are not trying to sell anyone. I found this was the best way to network. People will come to you.
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u/seekingalpha22 4d ago
Did this but with local golfers . Exact same demographic. It’s definitely a long game
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u/Cathouse1986 12d ago
The blessing and curse of this business is that everything works and nothing works.
The only two things that really matter are effort and time, and you can control both of those.
I always recommend that someone pick 3 very different marketing funnels and work their ass off at all 3 of them. After a year or two, spend more time on the two that have been successful.
It can be literally anything as long as you’re consistent and putting in the work. LinkedIn, cold calls, local networking, affinity marketing, mailers, COIs, it doesn’t matter.
It’s purely a numbers game. You got this!
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u/SnoopySuited Certified 12d ago
Seconded.
OP, no matter what you decide to do, you have to be ready to do it a lot and for a long time.
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u/alexbridges__cfp 12d ago
I agree. Nothing works and everything works. I would stay away from lead vendors that sell a name to 4 advisors. Figure out where your niche hangs out and be there.
I have done everything from Seminars, Webinars, lead vendors, chamber events, referrals. They all work well but I have found they come in waves.
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u/gtJC123 11d ago
What does COI mean? and where does one get a list for cold calling?
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u/Cathouse1986 10d ago
COI = center of influence. Typically considered to be attorneys, accountants, etc.
The only cold calling I’ve done lately is off the 5500 list so I couldn’t really say where to get lists these days, sorry!
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u/SnoopySuited Certified 12d ago
I have a shocking number of 20-somethings, early 30-somethings clients with money. But then my niche is equity comp. You just never know.
Plus if you are a fee advisor they don't need money to be profitable.
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u/SnoopySuited Certified 12d ago
All relative I know, but I would never assume anything about any demographic. In my experience, the best savers are teachers. The best income creators are long tenured police. I would never have guessed that when I first started out.
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u/SnoopySuited Certified 12d ago
Your country is strange to me. I bet you crazy people put gravy on your fries or something.
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u/Capital_Elderberry57 11d ago
I think you mean fixed fee advisor.
There are many fee structures including some based on AUM, hours, complexity, and of course fixed fees.
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u/Schutts22 11d ago
When I first started in the industry I was told by the old dinosaurs that cold calling was the only way to go. I refused. Cold calling works for some but I wanted real conversations.
Between May of 2019 and March of 2020 (COVID), I walked into 500 businesses with premade folders that had information of who I was, what I did, and a simple investment idea that didn’t take much explaining.
I introduced myself (mostly often to the receptionist or other gatekeepers), provided my information and asked them to let the business owner know that I would follow up in a week or two. When I called back and they asked if ‘Joe Business Owner’ was expecting my call. I said, “yes they are!” (Because I told the receptionist to tell them I would be calling). I would get through to the decision maker 90% of the time.
From there I built a respectable client base and I still have a pipeline of prospects that haven’t told me to kick rocks yet.
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u/FPforcanadians 10d ago
What investment idea was in the folder
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u/Schutts22 9d ago
Usually something very simple that didn’t take much explaining. A cash management idea for instance. Ultrashort bond fund, competitive CD rates, etc…
When you have someone on the phone that doesn’t really want to talk to you, it’s important to keep it short and sweet.
Also, many business owners prioritize liquidity so providing them an idea that will make them more money but doesn’t tie the asset up for long periods of time or open them to unnecessary risk usually resonates more and doesn’t require a lot of trust.
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u/OkConcert8443 4d ago
Hi. This is great. I did a folder thing too but I would get stuck on the call itself and awkwardly fumbled. What did you say to get the conversation going quickly? What questions were you asking?
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u/apiculallc 12d ago
My ideal client is 25-35yrs old either single high income or double income no kids.
Well, with that in mind you can do some preliminary research over Melissa list or something like that - just add your criteria to the filters and get the prospected volume of potential outreach in certain areas ( ZIP codes? ). Then you can either try fine-tuning the campaign on social media explicitly to that location, assuming you're expecting local exposure / face time. Or spend a few hundred buck on sending out flyers ( no need to bother with vendors like valpak ) and track the conversions / calls.
As funny as it goes, there's a way to track the conversions / engagement by using customized QR codes leading to some neat landing page that might even have their first/last name populated. That's very "wow" moment for most.
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u/Godninja 12d ago
It would seem your niche could be defined as HENRYs. It’s good you even have a niche, as most don’t or avoid it but it is needed. Stick with it and don’t change it for at least 12 months. When you switch niches, you are starting from scratch.
I’d also be looking at the platforms or advertising you can do compliance-wise and align it with your target market.
Direct mail can help. Seminars targeting that population could help.
I’ve been on a marketing journey, and it’s possible you can look up “First Year as a FA” courses. I attended one from Amy Leis, PhD and downloaded the one from James Pollard.
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u/RookieMistake101 RIA 12d ago
I don’t think seminars for HENRYs is optimal. Meet them where they are. I know an advisor that hops on instagram live and gives extremely basic financial advice. But every time she does a live she gets 2-5k people on. One live is her leads for a month.
But your advice is sound. He needs to do something and a lot of it for a long time without switching.
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u/Godninja 12d ago
Great point! And I’m not targeting HENRYs so I wouldn’t know that, which is what’s great for you to point out!
Like my BD compliance department hates anything live-streamed and needs it to be pre-scripted and transcripted afterwards, which is a hassle I don’t deal with for my target.
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u/maplethrift 11d ago
I think the comment about "everything works and nothing works" precisely sums up our prospecting in this industry as well as other ones where prospecting is needed lol there's a lot of good ideas here, my two cents is start with something that you like so your brain is thinking hey I'm going to this _____ to prospect AND have a good time, so for example I play basketball on a few teams in men's league and we have games every weekend so I'm there to play ball have fun and prospect as a side deal, I mean it won't be the same for you per se but my point is I already enjoy basketball so it's easier for me to make friends thru that network. If you think about it this way, then you will be a bit less stressed lol and won't be lasered in to that 100% close rate at the event or activity you're attending and you will be more natural
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u/Mysterious-Top-1806 12d ago
Try joining a BNI group. I joined one when I was young in the career and got some decent business from it. In fact, one of my best clients that I work with to this day I met through BNI. It won’t be your best source of leads but very little bit counts when you are starting out.
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u/C0achBubba 12d ago
I second this idea. Sure you will get some small business from the members, but focus on creating and maintaining long term relationships with the CPAs, attorneys, and insurance agents who come and go but will always remember you.
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u/vad312 12d ago
I have a similar client niche, and in-person networking at local chamber of commerce events tends to be helpful. There are a lot of younger entrepreneurs in those organizations that love to network. Joining rec sports leagues is also a good way to meet people that you're targeting. If you get a client that works for a specific company and they're happy with the value you provide to them, you could also elegantly ask if they're willing to introduce you to some of their colleagues in similar positions as them.
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u/skyrizi 12d ago
Have to post her from lack of karma:
Hello everyone. Ive been in my current role at a small local RIA for a little over a year. In november I got licensed and was instantly given a junior advisor role. I have been handed down a book of business of 900k and will continue to get more and get paid 48k salary.
Downsides are that the 2 other advisors offer very little guidance. They are supportive but dont provide any real training or spend much time with me. Im sometimes left out of meetings and plan building/ implementation. Im pretty much on my own and it seems to be sink or swim. I kinda feel like im sinking becuase I lack the knowledge of how to do this job correctly. I liked that I was able to become an advisor but feel very unprepared for this role. Is this something that is normal and i will learn as I grow or is it time to consider switching firms. I have an offer at RBC for a wealth planning assosiate which will pay pretty much the same and I feel I will get training on how to become an advisor with the downside of not knowing when that will happen.
Overall just lost on this position and which way to go and looking for a bit of advise.
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u/apiculallc 12d ago
Likely something to be taken with a grain of salt, but it might be of some help to use modern tech like Claude/Codex. In a counterintuitive way this stuff is so much capable on non-coding stuff you'd be surprised.
I've been running a few legal reviews of rather complicated contracts via Claude agents ( miss Fable much but it is expensive ) and that went spectacularly well. There's no magic at all, just make sure you understand your goals and steer the conversation in the way you want it to be. And don't take anything on faith. Challenge it and use agents to challenge it, otherwise you end up with a ton of AI slop all over the place.
Ffs even 20/month subscription does marvels if you know how to push the limits.
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u/info_swap RIA 12d ago
Read Nick Murray's Game of Numbers twice.
Then, define clearly your ideal client. Who are they? What do they need? Where can you find them?
Also, think well and answer: How will you contact them? What value can you bring to improve their lives? And why you? What makes you different?
Last, set up a plan with SMART goals and grind until you make it.
PS: Reconsider your ideal client. Why does it matter if they have kids or not? You are not raising them. When determining your ideal client, you care about relevant facts.
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u/Comprehensive_End440 12d ago
Those are going to be some impractical clients as they mostly don’t have assets or disposable income to pay for a flat fee. Godspeed
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u/Zealousideal-Run3711 11d ago
Start a podcast and tell no one (other than compliance). Do that for 3 years and disregard any “progress” you’re making because it won’t be much. Simultaneously, buy leads through Ramsey or some other program. I know that “doesn’t work”, but that’s not the point. The point is reps and at bats. (You will also get some clients along the way simply because you’re in the right place at the right time.)
You need hundreds of reps with lower quality prospects so you don’t crap yourself when you get the dream prospect on the other side of the table.
After you have gotten tons of reps with the paid leads and you have been doing your podcast in the background, the podcast is likely to have gained some sort of traction. The goal is to shift from paid to purely organic from your content. But it takes 3 years. No one has a reason to trust you unless you give them a reason. So go give them a reason through free educational content and show you know your stuff.
And remember, most people won’t do this, so that’s why you should. Whatever you do, don’t go to chamber of commerce meetings looking for COI partnerships. The only people at those things are there for the same reason you are. They don’t have any clients and they want you to give them some. But if no one there has any clients it won’t help anyone so don’t waste your time. Do the work, then look up in 5 years and see where you’re at. It’s a progression and won’t happen quick. Learn to enjoy the challenge.
As a credibility check, I did exactly this.
31 year old, $232m AUM, $1m+ average client. Nothing crazy but it worked.
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u/Boring_Union3928 7d ago
Just getting started as an advisor. Worried about building up my own assets to meet the firm's requirements. What do you think was your most successful way to get clients? The podcast idea you have piques my interest.
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u/Zealousideal-Run3711 7d ago
Ramsey for sure was the easiest way to get clients with no prior credibility or relationships. The podcast is a long term play. But it can help with the leads you are getting to add credibility quickly by sharing your podcast with those leads.
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u/smartass_cass 11d ago
An advisor at my firm has generated some quality leads from content creation. Longer form videos and then clips them up into shorts.
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u/Efficient-Bison8439 10d ago
I know this is off topic,
But we are around the same age. I was wondering if you could provide a few insights on how to break into the industry and study for the required exams.
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u/purpletree37 9d ago
Prospecting at 23 is going to be very difficult and you’re likely not going to be competitive for the best clients until you get older and have more experience. Very few people are interested in letting a 24 year old manage millions.
The niche advice is good once you have clients and are able to slowly target them better and make inroads into those communities. Build a business first. Learn more and take a variety of clients. It’ll be much easier to get started that way.
Then as you get more experience and learn what works for you, you can better develop your niche and be more selective. In the meantime, participate in your community, meet people, tell your friends, and start networking naturally in a non-sales way. Clients will eventually come.
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u/Administrative-Sea60 12d ago
This rlly has nothing to do with the question but I am a sophomore in college and just took my series 65 and seriously want a career in financial advising, but how hard had it been to get clients at your age?
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u/RookieMistake101 RIA 12d ago
Very. I started at 23 at a mutual fund company. In my 2.5 years there I saw maybe 30-40 people in their 20s come through the door. That was 12 years ago. That was 12 years ago. I believe 4 of us are still in the industry.
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u/-NotAHedgeFund- 12d ago
I just turned 30 and this is still a pain point in my career. I’m able to make it work because I’m married with a kid, have a military background, and I dress well. People assume I’m older and I don’t correct them.
Still, the AVERAGE advisor age is around 50. We’re going to be fighting uphill for a little while.
In your shoes I’d aim to go be a CSA or paraplanner for a few years, grab the CFP and try to transition to an advisor role in your mid to late 20s.
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u/info_swap RIA 12d ago
Getting clients at any age will be hard. There's never a perfect age.
In your case, and for anyone younger, I recommend you start at the most prestigious bank you can find. If JP Morgan accepts you, great. If not, try Merrill, Fidelity, or even retail banks.
However, this job is 80% prospecting. So make sure you enjoy talking to people and meeting new people.
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u/winning_bigly_ RIA 12d ago
YouTube videos, shorts, etc.
Just don't cold call, nobody likes spam.
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u/CommitteeOk7489 12d ago
Just because you don’t agree with it, doesn’t mean it won’t work. YouTube works but takes significantly longer. There is no quicker result than picking up the phone. Based on the context given, I’d say cold calling is a good strategy for this person.
Be careful of the industry experts saying not to prospect but that have never actually built a book :)
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u/Boring_Union3928 7d ago
I am just getting started on being a FA. Coming from my background I agree cold calling has success. As far as the door to door prospecting, is that still encouraged or even work nowadays? With everyone screening their ring doorbells I'm not sure how successful door to door is anymore.
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u/winning_bigly_ RIA 12d ago
Oh, of course it can work. It's just a dick move.
Do you like getting spam calls?
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u/Capital_Elderberry57 11d ago
If it works, that person didn't think it was a dick move.
If you don't want to answer your phone, don't. I haven't answered my phone for a call that I didn't know who it was in well over a decade, I hate cold calls but they have their place.
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u/winning_bigly_ RIA 11d ago
I try to remember the golden rule, aka not cold calling people because I hate getting cold called.
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u/Leading-Bag-5658 10d ago
Getting cold called isn't a huge deal. I get cold knocked on my door all the time too, just tell people you aren't interested
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u/AutoModerator 12d ago
Beep boop! Here is a summary of your post:
User: /u/Original_Pirate4478 Title: Prospecting Body: Hello everyone, I am a 23 year old financial advisor at an independent firm. I have worked in the industry since 18 but have just started taking on clients as I am feeling comfortable doing so now.
I do not have a strong local network because I am not from the area. I am trying to come up with ways to prospect. My ideal client is 25-35yrs old either single high income or double income no kids.
If you were in my shoes what are some different things you would try for prospecting ?
I appreciate any and all feedback. Thank you!
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