Who’s an elite financial advisor (and where do you rank?)

The cream of the cream of financial advisors typically deliver exceptional and personal service to their affluent clients, an often have social relationships with them.

According to Matt Oechsli of the Oechsli Institute, elite financial advisors are defined as having a minimum of $100 million in assets under management, while 75% have at least $100 million in AUM, and 44% have more than $200 million.

What’s more:

  • 82% have social relationships with their largest 25 clients

  • 61% have a succession plan

  • 28% have acquired new assets from LinkedIn

  • 0% have lost any business to a robo-advisor

At least so far, the elite advisor segment has been dominated by “older” advisors. The Oechsli study reported that 54% of elite advisors were over 50; while 6% were 30 years old or younger. 

Where the Newest $1 Million Clients Came From

Alliance Referrals. Not surprisingly, 78% of top advisors acquired at least one new million-dollar client through referrals from “alliance partners” primarily lawyers and accountants.

Personal Introductions. The same percentage (78%) of new big business came from personal introductory referrals from current clients.

Unsolicited Referrals. More than three-quarters (76%) of all elite advisors gained new business from unsolicited sources – people finding them on the web, from blog posts

Social Prospecting.  62% of new million dollar clients were sourced from proactive networking and prospecting.

Client Events. 38% of new million dollar-plus clients were the direct result of advisor lunches or dinners with previously prospective clients.

The big drop off: only 14% of new big business came from public seminars, 11% from cold calling (this still works?) and zero, nothing, from direct mail.

Social Media. 11%. A growing number of new big-ticket clients could prove their genealogy from active work on LinkedIn, Twitter, Facebook, and/or Google+.

How Much Marketing Dollars Do Elites Spend?

As a percent of total revenue, according to Oechsli, 5% of elite advisors typically spent less than 1% of their revenue on marketing; nearly one-third of top advisors spent between 1% to 3% of revenue on marketing; three of ten spent between 4% to 6%; less than one in ten spent beween 7% to 9%; and approximately two in ten spent 10% or more of revenue on marketing related activities.

For more information on how to build your book of business, please check out this quick quiz: