Entering text into the input field will update the search result below

Virtual Financial Advisors Need New Marketing Strategies

Mar. 07, 2018 2:55 PM ET
Jack Waymire profile picture
Jack Waymire


  • The internet has changed the game. Investors have access to vast amounts of online information, which makes them less responsive to outdated marketing practices.
  • Traditional marketing practices are being challenged by the virtual advisor. In most cases, virtual advisors deliver the same advice and services but the methods of communications may differ.
  • Virtual marketing should not be confused with virtual servicing. Every advisor has clients who relocate and retain their services. This creates virtual servicing relationships when investors stay with advisors.
  • Virtual marketing principles: Now comes the hard part. How do you market your services in a virtual environment?

If you are like most financial advisors, you have been using outbound marketing strategies for decades to add new clients to your firm or practice. But outbound has a fatal flaw. You have to initiate contact with investors, and since most investors do not want the contact, rejection rates for these strategies (telemarketing, direct mail) approach 100%.

Ask yourself these questions to determine the success of your current marketing practices:

  • Are your outbound strategies producing new clients?
  • How much time and money do you spend on outbound?
  • Are you experiencing diminishing outbound returns?
  • Are referrals your only source of new clients?
  • Are you producing enough new clients to offset losses and grow?

Outbound marketing has two other fatal flaws. First, it takes some serious sales skills to be successful, and second, it requires a willingness to experience a lot of rejection to produce a limited result. Most financial advisors would rather produce financial plans and invest client assets. They do not view outbound marketing to be the highest and best use of their time and money.


The internet has changed the game, like it has for so many other industries. Investors have access to vast amounts of online information, which makes them less responsive to outbound marketing tactics.

It also means the financial services industry has lost an element of control. Investors can use the internet to learn more about advisors, find advisors, research advisors and validate the information that is provided to them by advisors.


The foundation of traditional marketing is face-to-face contact. This form of marketing benefits the advisors with the best sales skills because face-to-face contact maximizes the impact of their sales and relationship skills.

This works for most investors because they still select advisors they can meet with face-to-face. It

This article was written by

Jack Waymire profile picture
Jack Waymire spent more than 25 years in the financial service industry. He is the author of Who’s Watching Your Money?, 5 Steps for Selecting the Best Financial Advisor, and the founder of PaladinRegistry.com and PaladinDigitalMarketing.com.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.