Massive income growth among financial advisors came from increases in their client base, the survey said. Although many financial advisors benefited from market gains that increased the value of their book of business and the volume of assets under management, most of the additional income came from an increase in their client base, according to the report. Overall, survey respondents reported a 22 percent increase in clients over the last two years.
“Not surprisingly, almost all advisors (99 percent) rely on referrals to expand their client base and it is considered the most effective way to get new clients,” said Murach. “Interestingly, advisors’ websites and social media accounts are considered the next most valuable tools to market to new clients, which were rarely used 10 years ago.”
The findings of the 2018 study were fielded via an online quantitative survey of roughly 1,500 financial advisors, and insurance and investment professionals by LIMRA and EY. Data from 2008 was based on a joint survey of 1,200 sales professionals and financial advisors from LIMRA and McKinsey & Co.