Why lead generation can be tricky in the later life sector

"In essence, later life advice is not a transactional ‘sale’ like it is in the mortgage market."

Last month, I reviewed some of the key market elements that appear to be in a constant state of flux, and always exercising the minds of the later life adviser community.

This month, I want to look in a bit more detail at one of those topics – notably the generation of client leads and lead generation companies specifically – because of a number of interactions I’ve had recently and the difficulties this can sometimes present for advisory firms.

From the outset, let me just say, that having worked in mortgage broking some years ago, and having worked with a number of excellent lead generation businesses, I fully get the role they can play and the clients/business they can deliver to advisers in this space.

My own view however, and I’m yet to be disavowed of this after many interactions with later life/equity release lead generators, is that making the model work in this sector is tricky – especially for smaller firms.

In essence, later life advice is not a transactional ‘sale’ like it is in the mortgage market. Individuals want to purchase a house, they put their details into various websites looking for help in how to do this, and these generate the leads that are then sold onto advisers. I get how this can work for mortgage advisers.

However, that’s not the way our sector works. With many customers starting with a need or desire that can be fulfilled in a variety of ways, they will often search ‘equity release’ to see what level of housing equity they could access. They may be too young, need a larger LTV than their situation permits or just be doing a bit of sensible retirement planning.

Lead generators will capture their details as if they are potential equity release customers, but they may not be far enough down the decision-making process to be useful for advisers in the here and now – especially in the current market. Investing for the future can make sense but when you need to pay for leads upfront and may take months to convert them – if at all – it becomes tricky.

Far better – and I think most later life advisers get this – to put all that effort into developing your introducer relationships, in my view a far better source of leads than any company essentially giving you a list of names, e-mails and telephone numbers.

To support advisers who wish to boost their lead generation activity themselves, Air Academy is hosting a series of national masterclasses which are designed to provide firms with the tools to market their business with confidence.

If you can’t attend or haven’t signed up, I would certainly suggest you visit the Air Insights Hub for further information to give you an idea of where to start and the various options you can consider. Lead generation and building a marketing plan can be as simple or as complex as you choose to make it, but it needs to suit your organisation.

Start by considering who your target as well as who a typical customer is. Do you aspire to service the wealth market but find you get most of your referrals from your mortgage contacts? Is the current shape of the market one that is going to support your aspirations or does this need to be a long-term ambition?

Is your website, marketing collateral, brand and activity designed to engage with wealthier clients or those struggling with interest-only mortgages? How do you build your visibility with these target audiences while maintaining current referral relationships?

These questions are only the starting point but answering them will help to ensure that you can say yes - or indeed no - to ideas, opportunities, and approaches rather than taking valuable time away from clients only to see little impact. It will also push you to start more conversations with introducers, business contacts or existing clients – essentially becoming your own lead generator.

While lead generation may work in other industries and for larger organisations, I am deeply sceptical as to whether smaller later life advice firms will see the benefits of the cost and resource it requires. Far better to spend the time building and refining your own lead generation strategy which can grow, develop and flex with your business.