TD Ameritrade Institutional recently unveiled “Breakout Growth,” a practice management program for RIAs. The latest instalment is called Advanced Strategies to Attract the Right Clients and includes details of five strategies the firm believes will help advisors kick-start or enhance their growth trajectory.

So-called “stand-out” wealth management firms spend twice as much time on business development activities than firms facing growth challenges, according to a recent study by FA Insight.

In light of this, TD Ameritrade Institutional recently unveiled “Breakout Growth,” a practice management program for RIAs. The latest instalment is called Advanced Strategies to Attract the Right Clients and includes details of five strategies the firm believes will help advisors kick-start or enhance their growth trajectory.

1) Define your ideal client

The firm believes that advisors who focus on a “well-defined niche” can pursue faster, more profitable growth.

“By focusing on a specialized group, RIAs may become an established source within that niche and position themselves to receive more rewarding client introductions,” TD Ameritrade said. “A true niche is more specialized than just 'women' or 'executives,' but rather sub-groups – say, orthodontists in Orange County or dentists in Miami – with whom RIAs have a personal connection.”

2) Create a brand that resonates with your ideal clients

TD Ameritrade said branding is the “special sauce” that attracts clients. “Without it, advisors miss an opportunity to emphasize their strengths.”

3) Cultivate more rewarding client relationships

Refferals alone are not enough; advisors need to take a “planned approach” to generating client introductions, meaning a client introduces a prospect to the advisor personally. According to an Oechsli Institute study, 70 per cent of affluent investors will offer unsolicited personal introductions to their primary financial advisor “if they like, trust and respect” the advisor.

“But advisors must be proactive in orchestrating these introductions and referrals,” TD Ameritrade said.

4) Deliver engaging experiences

By creating high-impact events, RIAs can connect with clients personally, as well as attract prospects and raise their profile within a niche.

The firm highlighted that events don’t have to be large or complicated. “They can be as simple as inviting an author to speak to a group or hosting a wine-tasting — just so long as advisors create a social environment that also feels special.”

5) Price services to reflect value

Previous research has shown that at 71 per cent of firms, asset-based management fees cover a range of services beyond money management.

While this model is clear and easy to understand, “bundled” pricing can lead clients to undervalue services they don’t pay for explicitly, the firm said.

It argued that, among “stand-out” firms, 56 per cent have introduced a minimum fee, versus less than half of growth-challenged firms.

Advisors must “clearly communicate reasons for price changes to clients,” the firm said.