When it comes to marketing your financial advisory firm, you have two main options: outsource it to professionals or hire an internal person.
Each option has its own set of pros and cons, and the decision ultimately depends on your budget and what you want to get out of your marketing efforts.
In this blog post, we will discuss the budget and the pros and cons of each option so you can make the best decision for your firm!
How much should advisors spend on marketing?
A good rule of thumb is to invest 5-7% of your revenue into your marketing efforts each year. Of course, this number will vary depending on what you’re trying to achieve with your marketing.
For example, if your firm is near capacity and you simply want to maintain your current flow of referrals, 2-3% of your annual revenue may be enough. However, if you’re really trying to grow your business and increase your AUM by 15% or more, a 5-7% investment is the sweet spot.
How much does it cost to hire an internal marketing person?
The average salary for a marketing director is around $74,000, plus benefits. Throw in the fact that the average cost of benefits for private-sector employees is around 29.2% of total compensation, and that brings your total up to $95,608. And that’s just for one person!
If your dream marketing team also includes a content writer, graphic designer, video editor, or social media manager, it could quickly escalate to a quarter of a million dollars or more once you include benefits.
What should your marketing person do for your firm?
Generally, a marketing director should be responsible for overseeing all aspects of your firm’s marketing efforts, including:
- Developing and executing a marketing plan
- Managing social media and website content
- Creating collateral and advertising materials
- Planning and organizing events
- Forecasting business growth
Pros and Cons of Hiring an Internal Marketing Person
If you hire an internal marketing person for your financial advisory firm, you can expect these benefits and drawbacks:
- You have an in-house person who is available on a whim to execute any last-minute marketing requests.
- They can help out with other parts of your firm if trained properly.
- They will develop a deep, firsthand understanding of your clients’ needs and desires over time.
- This position can cost almost $100,000 a year by the time you factor in benefits.
- You may also need to hire other members of the marketing team if you’re looking for specialized skills.
- The role may also incur additional costs for subscriptions, ads, campaigns, and other marketing strategies they plan on deploying.
How much does it cost to outsource your marketing?
If you outsource your marketing to a firm that specializes in digital marketing for financial advisors (as we do at Indigo Marketing Agency), you can expect to pay around $10,000 to $12,000 per year. That’s about one-eighth the cost of hiring an internal marketing person!
When you look purely at costs, outsourcing is much more cost-effective. But beyond that, when you outsource to the right people, it also cuts out the time you’d spend hiring and training someone new. As a result, you get instant access to a team of experts who specialize in designing a custom marketing strategy that helps you grow your business.
Long story short? If you don’t have the budget to hire an internal marketing person (which, let’s face it, most independent financial advisors don’t), outsourcing to a marketing firm for financial advisors can be a Goldilocks alternative.
What do we do for you?
At Indigo Marketing Agency, we help financial advisors grow their businesses and attract more clients they love with our Total Marketing Package. It’s our most popular service for advisors because it helps you:
- Increase leads and conversions with our cutting-edge SEO, social media, and email marketing services
- Get a 12-month custom marketing plan, designed specifically for your business
- Save time and money by having all your marketing needs taken care of in one place
- Grow your business with the help of our experienced team of experts
To put it simply, this package takes marketing off your plate for good. As in, give us your passwords once, and you never have to remember them again. We’ve got it covered from here. So, you can kick back, relax, and focus on what you do best—serving your clients.
How much does it cost?
Our Total Marketing Package costs $795 per month, plus a one-time $3,500 setup fee—in other words, a fraction of what you’d spend to hire someone internally.
We also don’t believe in contracts or commitments because we want you to feel like you can cancel at any time if we’re not delivering on our promises.
Pros and Cons of Outsourcing Your Marketing
Outsourcing your marketing to professionals generally has these benefits and drawbacks:
- Save time and energy by letting the experts take care of it.
- Get more for your money by outsourcing to someone who costs less than a full-time hire.
- Gain access to the latest trends and techniques in marketing.
- You don’t have to go through the process of hiring and training someone new.
- The quality could be lacking if you don’t take the time to find a firm that offers exactly what you need.
- The turnaround time may be slower than if you hired internally because agencies juggle multiple client requests at once.
Which option is best for you?
Okay, now that you know the main differences between outsourcing your marketing or hiring someone internally, which should you choose?
In a nutshell, an internal marketing team may make more sense if you:
- Have a large team consisting of many financial advisors
- Have a bigger budget that can accommodate an average $60k salary plus benefits
- Want more control over how your marketing is executed
- Need more custom marketing than the average independent advisor
On the other hand, outsourcing your marketing as a financial advisor may make more sense if you:
- Have a smaller team
- Are working with a smaller budget
- Don’t want to manage another team member
- Are short on time
- Don’t want to learn marketing
- Want access to a team of experts who can offer a fresh perspective on how to grow your business
Ready to take marketing off your plate for good?
If you’re here reading this article right now, there’s a good chance you feel burned out with your marketing. You’ve wasted a lot of time and energy, and now you’re considering outsourcing to professionals or hiring an internal marketing person instead.
The good news is, we know we can help you. But it all starts with a phone call. Schedule a free strategy call with us, and our team will take a look at your current marketing strategy and give recommendations on how to improve.
It’s totally free—no strings attached! We hope that by talking more about your marketing goals, we can help you grow your business more efficiently than ever before. So, schedule your free strategy call today!
Oh, and if you’re interested in our Total Marketing Package, we can also discuss that during the call too. But fair warning: we’re an efficient team that only wants to work with advisors who are a perfect fit for our services. This means we’ll be 100% up front about whether Indigo is a good fit for your needs. We can’t wait to chat with you!
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