Ellis Communications, L.L.C.

Telemarketing ‘Do Not Call’ List Changes Everything for Advisors;
It’s a Tsunami That Seriously Restricts Their Marketing Options

Financial advisors have been hit by a tsunami that has significantly impacted the way they can market their business and they probably don’t even know it.  This huge wave that’s rolling over them is the national telemarketer “do not call” list.

“The ‘do not call’ list changes the very nature of the way advisors do business,” says Martin R. Baird, president of Phoenix, Ariz.-based Advisor Marketing and author of The 7 Deadly Sins of Advisor Marketing.  “After tough markets, a lousy economy and scandals, just when it looks like advisors see a light at the end of the tunnel, it’s a train.  Actually it’s worse.  It’s a tsunami that leaves them with only three tools to grow their book – advertising, direct mail and public relations.  Even e-mail is being considered for a list similar to that for telemarketers.”

Baird offers the following tips on the significance of the “do not call” list for the financial services industry.

No. 1.  Advisors who buy qualified leads from various companies have something to worry about.  “Many of those companies generate the leads through telemarketing,” Baird says.  “It will become more difficult for them to generate those leads because of the no call list.”

No. 2.  Fewer leads from companies that sell them means higher costs for advisors and a smaller market.

No. 3.  The days of the cold-calling buckaroo are over.  “Calling someone on the no-call list can result in an $11,000 fine and the people who can be called is limited,” Baird notes.

No. 4.  The no-call list will have a huge impact on direct mail.  “Advisors who generate business over the phone will switch to direct mail and prospects will begin receiving more mail than they ever imagined possible,” Baird says.  “This may already be happening.” 

Baird offers the following tips on direct mail pieces.

No. 1.  Direct mail will become very competitive and few advisors know how to use this marketing tool effectively.  “Direct mail may be the only economical way to contact people,” Baird explains.  “Advisors who opt for this valuable tool better learn how to do it right.  There’s more to doing direct mail than most people realize.”

No. 2.  The most heavily read part of a mailer is the headline.  “An effective, well-written  headline is critical to the success of any mailer,” Baird says.

No. 3.  The P.S. is the second most important element an a mailer.  “A good headline and effective P.S. are easy but critical elements of a direct-mail piece,” Baird says.  “The vast majority of advisors do not even incorporate them into their mailers.”

No. 4.  Before using them in an actual marketing effort, advisors should test market their direct mail pieces to determine which headline, P.S., offer and call to action works best.  “Advisors who test before they roll out a marketing effort have a distinct advantage over their competition,” Baird notes.

Advisor Marketing provides a variety of services to financial advisors to help them improve their marketing methods and increase revenues, including seminars and conference speaking engagements on such topics as referrals, marketing, client communication and transitioning to fee.The company also provides a service that tests multiple variables of a marketing campaign simultaneously so advisors will quickly know which elements of a marketing effort offer the best opportunity for success before they launch the campaign.

Advisormarketing.com is the premiere Internet-based source for marketing advice, information and tools for self-driven, success-oriented financial advisors who are demanding information that helps them market their practice, meet the needs of their clients and increase sales.  It offers such services as a free weekly electronic newsletter and reports on how to conduct different kinds of marketing. 

Advisor Marketing may be reached at 480-991-6421.