Referrals used to be the primary source of business growth for advisors. Clients are less trusting of advisors since the 2008 crisis. A recent survey says this lack of trust has affected clients’ willingness to give referrals.
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The lagging economy doesn’t help. This has advisors looking for other ways to attract investors. Seventy-seven percent of survey respondents said getting new clients was a goal for this year. Over 20% are focusing on developing a market niche in hopes of attracting new clients. A little over half want to better manage their time and almost half think they should do better marketing.
Clients’ past eagerness to give referrals made it easy for advisors to ignore the business-building attributes of efficient use of time and better organization. In the post-Madoff world, that may be about to change