Philip Palaveev
Philip Palaveev
THE BIG PICTURE
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Brought to you by tion of the firm( its brand) are all powerful“ attractors.” But these three characteristics also have“ rock-paper-scissors” qualities: Two can defeat the third when combined. It depends on the investor’ s demographics, needs and history.
• Investment performance is a very dark horse— it appears capable of defeating other characteristics. Investors who already have an advisor will choose a new firm with better performance over a firm recommended by a friend. But active shoppers often go with a friend’ s recommendation rather than a new firm’ s investment performance.
The highest“ market share” in our survey was achieved by Charles— the experienced advisor with a great reputation. When evaluated by active shoppers, he won a 44 % market share. It seems that the experience of the advisor and the brand of his firm are the best one-two punch combination.
How To Grow?
If we were to summarize the results and turn them into a growth strategy, this is what we take away: Advisors need to market! And do it a lot! It also helps to focus on a younger audience— people age 41 to 56. It’ s at those ages where you will see the most demand and the highest level of referrals. If your firm differentiates, it will stand out. And if you are not in the top three, you are not in the running.
But differentiation and marketing begin with your existing clients, and only the happiest and most engaged will make referrals. They are also at risk of changing firms, even if they are fans of yours. Emotions can go in both directions.
Finally, both your firm and you as a professional have to be present in front of the prospective clients. A strong advisor and a strong organization make the most compelling of cases.
PHILIP PALAVEEV is the CEO of The Ensemble Practice, the leading business consultants to the financial advisory industry, and founder of the G2 Leadership Institute, a leadership program that trains the next generation of leaders.
18 | FINANCIAL ADVISOR MAGAZINE | MAY 2025 WWW. FA-MAG. COM