How to Generate High-Quality Leads as a Financial Advisor
Want to attract top-notch leads as a financial advisor or insurance agent? You have plenty of options to consider: social media marketing, dinner seminars, radio programs, cold lead purchases, and more. But today, let’s dive into a strategy that focuses on building one key relationship—a partnership with a CPA—and the numbers behind the impact it can have on your business.
The Potential of a CPA Relationship
Building a solid partnership with a CPA can generate a significant volume of leads and revenue for your business. Here, we’ll look at the real math behind what this relationship can bring.
CPA Client Base Insights
According to the AICPA, the average CPA has over 600 clients. But for this example, we’ll take a conservative approach and assume:
- Average CPA Clients: 500
- Clients with Retirement Plans: Approximately 66% (two-thirds), or 330 clients
- Average Retirement Plan Value: $143,000 (based on Vanguard data)
This translates to roughly $47 million in total retirement plan value from one CPA’s client base.
Revenue Opportunities for Financial Advisors
Now, let’s break down how these numbers could transform into revenue:
1% Management Fee Scenario
If you’re managing $47 million at an average 1% management fee:
- Annual Revenue: $470,000
Annuity Commissions
If you’re focusing on annuity sales, let’s assume:
- Average Commission Rate: 6%
- Qualified Annuity Candidates: Approximately 25% of clients, or about $11 million
Annuity Commission Revenue: 6% of $11 million = $660,000
These calculations focus solely on retirement plans, but there's further potential revenue from clients who may need other financial services.
Additional Revenue Potential
Beyond retirement plans, a CPA’s clients often have other financial needs:
- Business Succession Planning
- Estate Planning
- Life Insurance and Other Financial Services
Each additional service offers more potential revenue opportunities within the CPA’s client base, and this is only considering one CPA partnership.
Scaling Opportunities with Multiple CPA Partnerships
Most advisors can handle multiple CPA partnerships, depending on their team and capacity. Imagine managing relationships with 2-4 CPAs and multiplying the numbers above. The potential growth for your practice becomes substantial.
