Are you wasting resources with digital marketing?
[The following is drawn from my recent interview with Michael Kitces for my Top Advisor Podcast – Keep an eye out for the release of this episode in September.]
Let’s face it: in an era obsessed with automation, AI, and digital shortcuts, it’s tempting to believe that financial advisors can just market their way to a thriving practice through the right LinkedIn strategy, a few clever SEO tricks, or relentless podcasting.
But when it comes to the moment someone actually starts to look for an advisor – the person they will trust with their financial future – the research shows that it’s still all about real, human connection.
If you’re a financial advisor wondering where to focus your time, energy, and marketing dollars, the answer is both old-school and profoundly human: building trust, one relationship at a time.
It’s All About the Transfer of Trust
As Michael Kitces eloquently put in our interview, “Everything in the advice business ultimately comes down to trust. You will give me advice, and I will act on your recommendations because I trust that you know what you’re talking about and that you have my interest at heart when you give me the advice.”
It’s not just technical chops or character alone – it’s that tricky mix of competence and genuine, caring intent.
When you look at the way people actually find and choose their financial advisors, Kitces’ research* paints a vivid and inspiring picture of the power of person-to-person connections.
Put the Human Touch Back Into Your Client Acquisition
*Kitces’ firm regularly surveys thousands of advisors and crunches the numbers on marketing tactics, strategies, and results. What did he find?
- 45% of new clients find their advisor through a direct referral from an existing client. That’s nearly HALF of all new clients!
- Another 20% come in from a “trusted source” – whether it’s a center of influence (like a CPA or attorney), a custodial referral, or even a third-party review site. At the core, it’s still trust being transferred from a human or a group/brand the client believes in.
So far, we’ve accounted for almost two-thirds (65%) of all new clients, simply via transfers of trust from humans, not from algorithms or cold online lead forms.
- Of the remaining third, the majority find their advisor by meeting the advisor at networking events, seminars, or client appreciation gatherings. These are situations where prospects have a chance to observe, interact, and get a feel for the advisor as a person.
- Only the final 10–15% of advisory clients come through every other imaginable marketing channel combined: social media, books, blogs, cold calling, direct mail, you name it.
So, if you’re pitching your firm as “tech-forward” and “digitally optimized,” that’s great!
But if you’re not focusing the bulk of your energy on cultivating real relationships, you’re missing how MOST advisory clients actually find and choose their advisor.
The Human Touch in the Digital Age
Let’s break down why these stats matter in a world gone digital. Think about it:
- When someone refers a friend to a financial advisor, it’s not just a passing mention. It’s the emotional weight of “I trust this person with my money and my life – you should at least know about my advisor.”
- Trusted sources, whether professional or even an online platform, only work when they carry genuine authority and credibility – built through past performance and reputation, which are deeply human attributes.
- At events, seminars, or one-on-one meetings, people are sizing you up. They’re looking for signs of empathy, expertise, and ethical grounding. They are consciously or unconsciously asking, “Is this someone I can trust, someone who understands who I am and what I need?”
Kitces even points out that among “all the other stuff” – social, books, cold calling – yes, you’ll get some clients. But the time, energy, and grind compared to the relational payoff of referrals and in-person events? Not even close.
Scaling Human Trust (Without Losing the Magic)
Now, can you scale this? Absolutely. Kitces notes how podcasting, for example, builds more trust than blogging, simply because people are “hearing your voice.” They feel your tone, your empathy, your authenticity. “It’s hard to get people through longer content in written form,” he says, “but you can hang out in someone’s ear in a podcast for 15 minutes, 30 minutes, even an hour.”
Podcasts scale the human voice and story far better than faceless, text-heavy blogs. But the true magic, even then, is that human-to-human resonance.
[Want to see if a podcast is right for you? Talk to Matt Halloran – who produces my podcast. Go to: www.ProudMouth.com/cates]
Why This Matters (More Than Ever)
If the data tells us anything, it’s that prospects want to meet their financial advisors through genuine human interactions – either because a real person made the connection, or because they had a chance to get to know you at an event or through your voice on a podcast.
The digital world isn’t going away. But as you plan your growth strategy for the coming year, ask yourself: “How am I investing in the relationships and trust that actually bring clients in the door, ready to work with me?”
ACTION STEP
If you’re ready to put the human touch back into your client acquisition – using a proven Relationship Marketing System – set up a complimentary strategy session.
BillCates@ReferralCoach.com
Learn more about our 1:1 coaching programs
www.CoachCates.com
Start Multiplying Your Best Clients with The Cates Academy™
Learn Bill Cates’ Proven Process to Attract More of the Right Prospects
The Cates Academy for Relationship Marketing™ is a comprehensive online video-training program that will help you generate significantly more income in less time. Work smarter, not harder!
Get the details and join us: www.CatesAcademyIndividuals.com
