Much of the RIA industry's historic asset growth has tracked closely with market appreciation. As reported by Financial Planning, organic growth remains the gold standard for building a sustainable RIA practice.

As the tenth installment in Financial Planning's "How to Build a Successful RIA" series by Chief Correspondent Tobias Salinger points out, some of the largest firms actually may lack the one thing that drives long-term success: consistent, internal lead generation. While referrals (from CPAs and other professionals) still hold value, industry veterans caution that advisers should not rely on them as the sole source of new business.

For example, John Wernz, partner at Mission Wealth and executive-in-residence at Great Hill Partners, emphasized the need to diversify lead generation strategies. The SEC's 2021 rule change permitting online testimonials has created new digital pathways to connect with clients, while tech platforms like SmartAsset and advisor networks at Schwab and Fidelity offer high-cost, high-competition leads.

As reported by Financial Planning, Wernz encourages RIAs to view lead generation as one piece of a larger strategy. He stresses that advisors first should build strong fundamentals, like a differentiated website and a consistent social media presence, before investing in leads.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.