Over nine in ten (92%) of IFAs primarily rely on referrals from existing clients to source new ones, according to a new report.
Despite relying on referrals, two thirds (69%) of IFAs surveyed by network Validpath said they see client growth as a high priority for their firm this year.
Referrals from personal connections were the primary source of new clients for 43% of advisers, followed by introducer arrangements with professionals such as solicitors and accountants (36%).
However, the research also found the many advisers plan to adapt their approach to attracting and retaining clients. A third (31%) of those surveyed said they plan to partner with other professional services firms this year, while a fifth (20%) will host in-person events, and 10% plan to enhance their marketing efforts this year including paid digital advertising, social media campaigns and purchasing leads.
Tim Riseborough, group operations director at ValidPath, said: “It is encouraging to see that so many IFAs are looking to actively grow their businesses and take on new clients this year. At the start of a year which promises much change for the sector, with the FCA’s rollout of a new targeted support and simplified advice regime, alongside wider technology-driven changes, this clear commitment to growth is testament to the strength, resilience and adaptability of IFAs.”
The poll from the network found that the majority (93%) of advisers have an optimistic outlook on the year ahead, with over a quarter (27%) feeling extremely optimistic.
Validpath surveyed 74 member IFAs between 9 and 19 December.