Why Story Beats Digital for RIA Growth with Wealthy Clients

[Client expectations for financial services are rapidly evolving and forcing advisors to rethink their traditional business models and become more strategic in their outreach and messaging. Multiple studies and surveys, like these from BNY Pershing and WealthManagement IQ, have uncovered how High-Net-Worth clients are looking for more personalization, comprehensive and integrated financial planning, tailored multi-generational advice, and help in solving their specific family and business wealth challenges. This is manifesting as a huge disconnect, causing friction, and a lack of advisor marketing effectiveness that continues to overestimate wealthy client interest in their core investment management services.

To explore this advisor engagement and growth challenge, I sat down with financial services marketing expert Dan Sondhelm CEO of Sondhelm Partners to discuss why many RIAs and financial advisors struggle to grow despite having strong investment performance and sophisticated technology. Dan shares his extensive industry experience and discussions with a wide cross-section of asset managers and wealth managers on their challenges in connecting to wealthy clients through their current marketing and messaging efforts. He also offers insightful observations and strategic suggestions that can refocus their efforts for greater success.]

Hortz: Dan, everyone talks about financial advisors needing better digital tools to compete. Do you think that is missing the point?

Sondhelm: It is not that digital does not matter, but it should come second. I see RIAs spending huge amounts of money on new platforms, apps, email marketing systems, and social media campaigns while their core positioning is completely misaligned with what their prospects actually need. You can have the slickest website in the world, but if you are positioning yourself as a stock picker to HNW prospects who need comprehensive wealth solutions, you are solving the wrong problem.

The issue is that many RIAs position themselves around their investment strategy when they are trying to attract high-net-worth clients. They will say something like “We specialize in mid-cap value investing” or “We run a concentrated growth portfolio.” But wealthy prospects do not wake up thinking they need a portfolio manager. They wake up worried about estate planning, tax optimization when they sell their business, or how to transition wealth to the next generation.

I see this constantly. I will look at a RIA’s website and it says, “We help successful individuals achieve their financial goals through disciplined investment management and rigorous security selection.” That could be any investment manager. But if you are trying to attract business owners or executives with complex wealth situations, they need to know you understand their world beyond stock picking.

Digital tools should amplify whatever positioning you have. If your positioning is misaligned, better technology just helps you communicate that misaligned message more efficiently. But when your positioning matches what prospects actually need, digital tools help you reach more of them and build credibility before you ever meet.

Hortz: Can you give me a concrete example of this misalignment?

Sondhelm: Sure. I worked with an RIA that kept talking about their “disciplined value approach with a focus on quality companies trading below intrinsic value.” They had the investment chops, good performance, but they were getting nowhere with HNW prospects. These prospects had businesses to sell, estate planning concerns, tax issues. The RIA was solving investment problems, but the prospects had wealth problems.

We repositioned them from “We help successful investors build wealth through disciplined value investing” to “We help business owners who’ve built their wealth in one company spread their risk and plan for what comes next.” Same investment capabilities, but now they are addressing the real concerns keeping these prospects up at night.

The positioning confusion is getting worse across the industry. I see RIAs with CFPs on staff still positioning themselves purely as investment managers. Their homepage talks about “portfolio optimization” and “security selection” when they should be talking about “protecting your family’s future” and “navigating complex wealth transitions.” They have the capability to be holistic, but they are not positioning themselves that way.

Then I see other RIAs who recognize this gap and start hiring CFPs or partnering with estate attorneys so they can legitimately position themselves as comprehensive wealth managers. That is smart positioning for the HNW market, but they do not always change their story to match their new capabilities.

Hortz: When does investment-focused positioning actually make sense?

Sondhelm: If you are purely an investment manager, lead with your investment approach. Some RIAs only do stock picking and portfolio management. For them, “We run a concentrated mid-cap value strategy” makes perfect sense. They are not trying to do estate planning or tax work. They know their lane and they stay in it.

The positioning gets more complex when you serve multiple audiences. If you work with both institutional clients and HNW individuals, you need different positioning for different situations. Lead with your investment strategy when talking to institutional clients, pension consultants, or other advisors looking for sub-advisory relationships. They are shopping for exactly that investment expertise.

But when you are talking to HNW prospects, lead with comprehensive wealth solutions. Even if they eventually want to discuss your stock-picking approach, let that come up naturally in the conversation after you have established that you understand their broader wealth challenges. Do not assume they care about your investment methodology upfront.

Here is where it gets tricky. Many RIAs think they are investment managers when they are actually competing for comprehensive wealth management relationships. If you are trying to attract business owners or executives with $2 million plus, you are not competing against other stock pickers. You are competing against full-service wealth managers who can handle their entire financial life.

I had a client who would start every HNW prospect meeting by pulling out performance charts going back ten years. He would spend twenty minutes walking through his investment methodology. Meanwhile, the executive across the table is thinking about equity compensation timing, succession planning, and protecting family wealth. The advisor never addressed any of that because he was too busy proving his analytical skills.

The prospects would say things like “This is interesting, but I think I need someone who can help with more than just investments.” They were right. He was positioning himself as a solution to a problem they did not have while ignoring the problems they actually did have.

Hortz: What is the role of specialization in fixing this positioning problem?

Sondhelm: Having a clear specialty is essential, but the key is picking one based on actual client patterns rather than what you think sounds good. I tell RIAs to look at their best clients and find the common threads. What industries do they work in? What life transitions have they gone through? What problems do you solve best?

One client told me he realized his niche when he noticed four of his best relationships were all business owners who had gone through acquisitions. That was not an accident. He understood their world because he had lived through it with them. Another advisor discovered she had a natural affinity for working with women going through divorce. She understood the financial complexity and emotional aspects in ways that resonated.

The mistake most RIAs make is picking a niche based on demographics rather than problems. “We work with high-net-worth individuals” is not a niche. “We help tech executives navigate pre-IPO equity decisions” is a niche. One focuses on who has money, the other focuses on who has specific challenges you can solve.

Your niche has to be authentic though. If you have never worked with business owners and do not understand their wealth challenges, do not suddenly claim that is your specialty. But if you have three clients who have gone through similar transitions and you have helped them succeed, lean into that expertise.

Hortz: Once an RIA figures out their positioning, how do they communicate it effectively?

Sondhelm: You need to get your positioning into the market through multiple channels, and it needs to be consistent everywhere. Most RIAs either have unclear positioning, or they only communicate it in face-to-face meetings. That limits their growth to however many people they can personally meet.

Content marketing, speaking opportunities, getting quoted in the media, website content, email campaigns, social media. If your positioning is about helping business owners navigate wealth transitions, that theme should run through everything you publish. Your investment expertise might be part of your toolkit, but it should not be your headline.

For example, instead of writing an article called “Mid-Cap Value Opportunities in the Current Market,” write “How to Time Your RSU Sales to Minimize Tax Impact.” A tech executive who reads that article immediately understands you get his world beyond just investment management.

I see RIAs write LinkedIn posts about interest rate movement when they should be writing about succession planning or liquidity strategies. They will speak at conferences about portfolio construction when their target clients want to hear about comprehensive wealth transitions. The content has to reinforce your positioning, not just showcase your investment knowledge.

The biggest obstacle when RIAs try to change their positioning is getting everyone at the firm aligned. You will have the senior advisor talking about comprehensive wealth planning while junior staff are still asking prospects about risk tolerance and investment objectives. I worked with an RIA where the lead advisor repositioned around business owner wealth transitions, but when prospects called, the first question from staff was “What’s your current asset allocation?” Mixed messages kill conversions.

Hortz: How do you know if your positioning is actually working?

Sondhelm: The quality of your conversations changes first, then the quality of your prospects. You will notice people asking different questions. Instead of price shopping, they are asking about your experience with their specific situation. “Have you worked with other executives going through acquisitions?” rather than “What’s your management fee?”

Referrals become more targeted too. When existing clients can clearly explain who you work with and what problems you solve, they make better referrals. Instead of referring you as “a good financial advisor,” they refer you as “the advisor who helps business owners with liquidity events.” That is a warm introduction to exactly the right prospect.

The timeline varies, but expect six to twelve months for real momentum if you are making significant changes. You are not just updating marketing materials; you are changing market perception. That takes consistent messaging across multiple touchpoints over time.

One metric I track with clients is what I call “qualification rate” – how many initial prospect conversations turn into second meetings. When your positioning is clear and matches what prospects need, more people want to continue the conversation. If you are getting lots of first meetings but few second ones, your positioning probably is not connecting with their real needs. There could be other things too, like lousy meeting skills, but that is another article.

HNW prospects are also increasingly skeptical of generic pitches. Your positioning has to feel authentic. They can tell when you are just saying what you think they want to hear versus when you actually understand their situation from experience.

Hortz: What is the biggest shift you think RIAs need to make?

Sondhelm: They need to understand what business they are really in. Many RIAs think they are investment managers when they are actually in the business of solving complex wealth problems for successful people. That requires completely different skills, different conversations, and different value propositions.

The most successful RIAs I know spend more time understanding their clients’ business, family situations, and life goals than they do analyzing securities. They are asking questions like “What happens to your employees when you sell?” and “How do you want your kids to think about money?” rather than “What’s your risk tolerance?”

This shift affects everything – who you hire, what you talk about in meetings, how you price your services, even your office setup. One client realized he needed to hire a CFP and an estate attorney rather than another research analyst. Another started holding client meetings in conference rooms instead of in front of Bloomberg screens.

The industry is moving toward more comprehensive relationships anyway. Clients have access to low-cost investment options everywhere. What they cannot get everywhere is someone who understands their complete financial life and can coordinate all the moving pieces. That is where the value is, and that is where the growth opportunities are.

RIAs who make this shift successfully often find they can charge higher fees because they are delivering more comprehensive value. You are not competing on investment performance anymore. You are competing on your ability to solve complex problems most other advisors cannot handle.

Hortz: Any final thoughts for RIAs struggling to grow?

Sondhelm: The RIAs that grow consistently are not necessarily the ones with the best investment performance. They are the ones whose positioning matches what their target market actually needs. When a prospect meets with you and thinks “This person understands the wealth challenges I’m facing,” you have already won.

Focus on becoming the advisor who solves the right problems for the right people. Investment capabilities, digital tools, all of that should support your positioning, not define it. And remember, your positioning is not about what you are good at. It is about what your target clients actually need.

I will leave you with this. The best RIAs I know can explain who they serve and what problems they solve in one sentence that makes perfect sense to their target client. “I help tech executives turn their equity compensation into diversified wealth.” “I help business owners navigate the financial complexity of selling their companies.” “I help physicians build and protect wealth while managing practice liability.” If you cannot do that, your positioning is not clear yet. But once you can, everything else gets easier.

This article was originally published here and is republished on Wealthtender with permission.

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