If you watch any television shows or go to the movies, you probably know we’re in the midst of awards season. The Golden Globes, the Emmys, the Oscars – there’s an award for everything, and the events are highly publicized. In the spirit of the film and television nomination process, let’s talk about what happens in our industry.
Many highly sophisticated marketing and promotional firms focus on financial advisors. They’ve figured out that financial advisors like winning awards and are often happy to pay for the privilege of announcing their winning status on a website or press release. For some advisors, promoting their honors constitutes most of their annual marketing efforts.
While there’s nothing inherently wrong with doing this, we caution advisors to think about whether applying for a particular award makes sense. We’ve heard of advisors who submitted for awards without checking with compliance first and weren’t allowed to publicize them. We also know advisors who happily accepted an honor and then received a bill they didn’t expect. Some of these honors are pay-to-play, and it behooves you to check the fine print first.
Advisors often have questions about the nomination process, why they got omitted from a specific list, or whether it’s worth pursuing a certain industry award. Let’s discuss tips and common concerns that arise when navigating awards season.
Realize that your broker-dealer or RIA likely didn’t nominate you for the award, even if that’s what the marketing pitch says. Usually, a firm is asked for a list of advisors who meet certain criteria set by the company sponsoring the award, such as a minimum AUM, years in the business, or products sold. If an advisor meets the criteria, their name is submitted to the awards company, along with everyone else who also fits the screen. That’s usually the extent of the firm's involvement – after that, the award marketing teams control the process, although some firm partners will notify advisors when they meet the criteria for certain awards.
Look at the award from the point of view of your clients and prospects before accepting. Will it make sense to them, or do you need to offer an explanation? A “Top 40 Under 40” honor might be easily understood, but an advisor who markets an award that isn’t clear could raise unintended questions (e.g., the criteria or factors of consideration aren’t easily understood.). In this case, you may need to explain why winning the award matters and not rely on clients reading a footnote.
Find out if the honor was unsolicited. If an advisor’s first contact with the firm was when they were notified of their finalist status or their winning, they should check carefully before going any further. Advisors may be required to purchase a package of costly advertisements and services for an award that doesn’t gain any traction with their ideal clients. Do you really want to be named a “local Fav” or something similar, and does that fit with your firm’s message and brand?
Consider the research involved. The maxim, “You get out of it what you put into it,” also holds true for awards season. Some well-known honors go through an extensive process, with outside research firms obtaining data and culling reports. These firms have screening criteria and send in-depth research requests to a select group of advisors, often requiring hours of time. So when your firm is required to give detailed data and has an active role in the process, it’s likely that receiving the award is based on merit, making it far more legitimate to publicize.
Explain to clients why an award matters to you, and why it should matter to them, too. We know a firm that recently won an award for giving back to its local community, and since philanthropy and helping others is part of its mission statement, it was especially sweet to share that win with clients.
Whether you choose to participate in awards season or not, make sure that your marketing activities in 2024 align with your core values and brand—and you’ll be off to a great start!
Make sure to check with your compliance department concerning your firm’s financial advisor award review and vetting policies and procedures.
Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.
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