Philip Palaveev

Why do clients refer you? And why do they stay? Turns out it’ s complicated.

OU’ VE PROBABLY HEARD THE JOKE THAT THE EASIEST way to make a small fortune is to start with a large one. Advisory firms have a related problem, though perhaps not as funny: They’ re all making small gains with a potentially huge audience.

Consider surveys we’ ve taken at our firm, the Ensemble Practice. In a survey of 1,000 investors, we found that 20 % wanted an advisor. But in a separate survey of advisory firms, we found they’ ve grown their client count by only 8 %. Many of those in the investor survey, which randomly selected people with more than $ 100,000 in income, were intrigued about partnering with a financial professional. Yet nearly 30 % of those who don’ t have such a relationship tried to search for one, only to abandon their search because the matches were poor and the research was time-consuming.

We believe the results paint a picture of both investors and advisory firms seeking to connect but failing to find an“ open line” and a common language.

Demand Is High And The Other Demand Is High!

Overall, 47 % of the investor respondents worked with an advisor. The wealthier an investor was, the more likely they were to be working with such a professional. Sixty-four percent of those with a net worth over $ 5 million had an advisor, while 55 % of those with between $ 1 million and $ 5 million did. Only 34 % of those with net worth below a million dollars worked with a financial professional.

An even better predictor of who has a relationship with an advisor was someone’ s investable assets, rather than their net worth— a clear mark left by the AUM

MAY 2025 | FINANCIAL ADVISOR MAGAZINE | 15