March 11, 2025 | By Theresa Conti, Industry Consultant
As a financial advisor, whether you specialize in qualified retirement plans or are looking to incorporate them into your business, finding new clients can sometimes be challenging. The retirement plan marketplace is complex, with numerous variables that influence plan sponsors’ decisions. Identifying what resonates with them is key to successful prospecting.
Even experienced advisors may find cold calling daunting. Attempting to reach decision-makers from a generic 401(k) plan list often leads to frustration and minimal progress. However, by implementing targeted strategies, you can improve your prospecting success. Here are five effective approaches to consider:
One of the best places to start is with your current clients. If you are a wealth advisor, work alongside one, or are in an office with wealth advisors, identify business owner clients already in your book. These individuals are excellent prospects because you can easily determine whether they have a retirement plan and review their latest Form 5500 for insights.
Additionally, don’t overlook clients who have yet to establish a retirement plan. With new requirements mandating businesses to offer retirement plans, startup plans present a significant opportunity. By designing the right plan, these businesses can grow quickly, and securing them as clients prevents competitors from stepping in.
Consider targeting industries where you have expertise or prior experience. Whether you’ve worked extensively with construction companies, medical professionals, or legal firms, your specialized knowledge makes you a valuable resource. Speaking their language and understanding industry-specific challenges will strengthen your credibility and increase engagement. If you’re new to the retirement plan space, identifying a niche and learning about its specific needs can give you a competitive edge.
Understanding what matters most to plan sponsors is crucial in capturing their attention. A thorough analysis of the prospect’s Form 5500 can help you identify areas they may not fully understand, positioning you as an expert who can offer clarity and solutions.
Additionally, determine if the plan sponsor/business owner is using the retirement plan as a tool for themselves. If they are not using the retirement plan as a true part of their overall financial strategy, that may be a great conversation to have with them (and there are so many business owners that don’t use the plan to its full potential).
Outstanding service is the foundation of any successful advisory practice. When you consistently exceed client expectations, you earn the trust needed to ask for referrals. Business owners often have connections with other business owners or work within larger corporations that offer retirement plans. A strong client relationship makes them more likely to introduce you to potential prospects.
While cold calling may seem ineffective, refining your approach can yield better results. Instead of competing for large plans with over $1 million in assets, consider targeting smaller plans with $500,000 to $750,000 in assets. These plans often receive less attention from other advisors but have strong growth potential with the right design and strategy. If you’re new to retirement plans, this can be an excellent entry point to build experience and credibility. Combining this approach with insights from Tip #3—helping business owners integrate their retirement plan into their financial strategy—can make your calls more impactful.
By implementing these five strategies, both experienced and new retirement plan advisors can enhance their prospecting efforts, engage plan sponsors more effectively, and ultimately grow their retirement plan advisory business.
