As one advisor told Cox, it's almost like picking up a puppy in a dog pound and it's not sure if you're going to pet it or beat it. Prospective clients are timid and want to make sure it's the right situation for them. They might've been burned, and as a result are talking to more advisors before signing on the dotted line.

"I think it's taking longer to build that rapport and trust, and prospects are gun-shy," Cox says.

So how to improve the odds of closing the deal more quickly and effectively? "The thing we've seen with best practices is really making sure you've got the ideal client profile and not going out on a limb to accommodate someone just to get new business," Cox says. "It's about being able to articulate the firm's unique value proposition and the services you're able to deliver to that client."

According to the survey, 71% of firms see marketing and business development as a barrier to growth, and 25% see it as a major barrier. Those numbers are up from 54% and 17%, respectively, from Schwab's 2007 RIA survey.

"I don't think many advisors see themselves as doing much marketing and business development," Cox says. "Their numbers are based on referrals."

In 2008, survey respondents said 85% of new clients came from referrals from clients, professional colleagues and custodian programs combined. The largest chunk (54%) came from client referrals.  

But referrals can be gained more efficiently and systematically than just through happenstance. Cox cites an advisor in Florida who's put together an aggressive marketing and business development plan around attracting women clients. Part of that is wrapped around a referral process that uses existing female clients.

Mark Soehn, principal and managing director at the advisory firm FSAG Inc. in Chicago, says his firm seeks growth by consciously trying to tap into the so-called circles of influence of its high-net-worth client base. "There's a certain number of people within each person's circle who are like them," he says.

One of the best growth enablers is technology. According to Schwab, some of the best-managed firms use rebalancing tools, portfolio management and customer relationship management systems to maximize efficiencies.

And as firms grow, they develop specialized staff roles such as a dedicated business development officer (present at 7% of the smallest wealth managers, with $25 million to $100 million AUM; and increasing to 45% at wealth managers with more than $1 billion). Other key staff roles include relationship managers (present at 21% of the small firms and at 93% of the largest) and dedicated financial planners (present at 49% of small firms and 97% of the largest).