How do high net worth clients choose a financial advisor? What is the most important criteria that wealthy investors use when deciding who to work with as their advisor?
If you are reading this thinking “referrals!” you are not alone. Referrals are traditionally the answer most advisors give to this question. After all, referrals are traditionally how advisors have grown and maintained their businesses for years.
Yet a new study from the Spectrum Group describes that not only isn’t this always the case, but that younger generations are increasingly using much different criteria when selecting their advisor.
The study found that just 4% of millennials chose "comes with a strong recommendation from trusted family/friends" as their top criteria. This is a mind-blowing statistic for an industry that has traditionally relied mostly on referrals to attract new business.
I’ve been saying for years (and have written about this very subject before) that as younger generations come into wealth and begin their search for …