For decades, referrals have been considered the gold standard of organic growth for financial advisors. New research suggests they remain important, but they may no longer be enough on their own.
A study released by Ficomm Partners and research firm Absolute Engagement surveyed 1,000 investors who currently work with a financial advisor and found that nearly half of respondents with at least $5 million in investable assets found their advisor without a referral.
Among investors with $5 million or more in investable assets – which places them firmly in the high-net-worth tier of wealth – 50% said no referral was involved in finding their current advisor, while 31% relied exclusively on a referral, according to the report.
These findings challenge a long-held belief in wealth management that affluent clients are won primarily through referrals and personal introductions.
The study found that referrals remain the single most common source of advisor discovery, but investors frequently supplement those recommendations with independent research. Across all respondents, 15% reported receiving a referral and then using at least one additional method to evaluate an adviser before reaching out.
Researchers found that younger investors were even less dependent on referrals. Among respondents under age 45, 59% found their advisor without a referral, while only 8% relied exclusively on a referral.
Digital channels played a significant role in the advisor search process. Respondents reported using advisor websites, Google searches, social media, YouTube and online reviews as part of their evaluation process.
The survey also found signs that artificial intelligence is beginning to influence advisor selection. Nearly 9% of all respondents said they used an AI tool such as ChatGPT, Gemini or Claude while searching for an advisor. That figure rose to 25% among investors under 45 and 15% among investors with more than $5 million in investable assets.
Beyond how investors found advisors, the report examined what facts mattered most when it came to choosing one. Nearly 74% of respondents said it was “very important” that an advisor demonstrated an understanding of their specific needs, ranking higher than staying in touch regularly, sharing relevant content or helping clients think about future goals.
The report arrives as wealth management firms face growing competition for high-net-worth clients and search for new ways to generate organic growth.
For those advisors seeking organic growth, they may need to think beyond traditional referral networks as investors increasingly research and vet firms through a variety of digital sources before deciding who to trust with their assets.
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