As we discussed in a recent post on “quality advice,” only half of financial advisors deliver the one thing clients value most: comprehensive advice. With advisors coming up short in this critical area of advice, it’s no wonder so many struggle with referrals, not to mention retention. According to one expert, advisors need to take a new approach to their value propositions to provide the guidance clients really need and fix referral woes.

Key takeaways:

• A dismal 72% of advisors say less than 10% of their clients gave them at least one referral last year.
• Value propositions need to answer the question, “Why should I work with you?” Most advisor value props don’t.
• A more holistic and comprehensive value proposition can be a differentiator.
• Delivering on a holistic value proposition leads to hyper-personalization, and it’s scalable.

It’s a fact, most advisors struggle with referrals

If you’re struggling to get referrals, you’re not alone. We hear it from advisors every day. In late 2024, Simplicity InsurMark asked advisors for insight about referrals for our 2025 Advisor Growth Benchmarks Report. The question asked was: What percentage of your clients gave you at least one referral last year? A dismal 72% of advisors surveyed responded with “less than 10%.”

You can download the 2025 Advisor Benchmarks Report here.

As Simplicity InsurMark Virtual CMO Jack Martin remarked on a recent episode of The Breakthrough Advisor podcast, “Less than 10% is not a healthy situation. A good friend said if you don’t get at least one referral from each client, that client isn’t fully engaged with you. There’s something missing from a relationship perspective. Referrals are the number one source of new business. The fastest-growing firms get business from other places, too, but they don’t ignore referrals.”

Advisors also have a value proposition problem

If your value proposition sounds eerily similar to every other advisor’s value prop, that’s a problem. Advisors need to differentiate themselves in order to get noticed and grow. Unfortunately, most financial advisor value propositions sound a lot alike, and they usually focus on things that clients assume all advisors do anyway.

As The Advisor Coach pointed out in an excellent post on the topic, phrases like “I offer tailored solutions to meet your needs” and “I always work for my clients’ best interests” get tossed around a lot. Instead, an advisor’s value proposition should answer one question: Why should I work with you?

The other big question prospects have when hiring a financial advisor is: “Can I trust you?” Check out our recent blog The One Big Question … for more on that one.

A more holistic value proposition can be a differentiator

Practice Intel Founder Tom Rieman—Martin’s guest during the aforementioned podcast—recommends a somewhat counterintuitive approach to value propositions. Instead of focusing on specifics be general but focus on “helping clients make good decisions.” 

This approach is different than the value props the vast majority of advisors use. It also doesn’t limit the advisor to any specific area of wealth management or the same type of solutions or services that clients assume every advisor offers. It’s more comprehensive and all-encompassing—which is what most clients want.

As Rieman explains, “If an advisor embraces a more holistic, comprehensive approach, their value prop could simply be, ‘My job is to help my clients make good decisions that align with things that are most important—their values, goals and aspirations. We’ve got a process to help people work through that, come to a point where they can make good decisions, and then we monitor and adjust as we go along.’”

Rieman’s value proposition is quite different from most you’ll hear in the industry but he says it’s one that will prompt prospects to say, “Tell me more.” Of course, you still have to deliver on the promise your value proposition makes in order to get more referrals.

Delivering on a holistic advice proposition facilitates hyper-personalization

While Rieman’s value proposition is more general than the way most advisors define their value props, the fact that it is more comprehensive naturally differentiates the advisor. That’s because it lets the client know the advisor offers an individualized experience, not an assembly line, where everyone is processed the same way.

Says Rieman, “By delivering on a holistic advice proposition, you’re actually delivering hyper-personalization during the process, which is one of the key things people want. Conversely, you’re inherently limited in delivering hyper personalization with the sales process. By helping people make good decisions, empowering them through the advice process, the responsibility for that ultimate decision is with the client. And inherently you gain hyper-personalization.”

The added benefit of hyper-personalization is that it’s scalable. As Rieman explains, “It sounds like an oxymoron, but you absolutely can. You solve for best interest issues by putting decision-making in the client’s hands. You grow, increase enterprise value and everybody wins. Tell me what’s wrong with that?”

Mindset, processes and culture need to be analyzed and revamped

As we discussed in our previous blog and podcast on quality advice, advisors who are serious about providing the comprehensive advice clients want need to pivot away from the legacy sales culture our industry has been glued to for decades. 

According to Rieman, advisors need to understand where they stand today in order to ramp up the quality of advice they’re delivering (through their clients’ eyes), grow more and create more value for a successful exit. Tune into Martin’s podcast with Rieman or check out our quality advice blog to learn more.

Conclusion

Getting more referrals isn’t just about asking for referrals more often. It’s about rethinking your approach to client relationships and the value you provide. By adopting a more holistic, comprehensive value proposition and delivering on that promise through hyper-personalized advice, you can differentiate yourself in a crowded market. 

This approach addresses clients’ true needs and naturally encourages referrals by creating deeper, more meaningful relationships. When clients feel truly understood and supported in their overall financial journey, they’re more likely to advocate for you. 

Simplicity InsurMark helps ambitious advisors build more sustainable and successful 21st century businesses. To learn how we can help you build yours, contact us at (800) 752-0207 or visit our contact page to schedule a discovery call today.

As an ADO – Advisor Development Organization™, Simplicity InsurMark provides solutions to meet the ever-evolving needs of financial professionals with a mission to protect and enhance the financial security of every home in America.