How Much Should RIAs Spend on Marketing?
A comprehensive breakdown of budget allocation, CAC constraints, and channel performance from firms growing at 15%+ YoY.
The wealth management industry has historically underinvested in marketing. For decades, the primary growth engine was individual advisor networking. Today, the landscape is digital, highly competitive, and increasingly commoditized. If you aren't investing to acquire clients, you are slowly liquidating your business.
The Benchmark Data
*Data reflects average allocation of top-quartile growing RIAs ($250M - $1B AUM)
The "2% Rule" is Dead
Traditional benchmarking studies suggest firms spend around 1.5% to 2% of revenue on marketing. However, when we isolate the data for firms experiencing high organic growth (excluding market appreciation), the spend is significantly higher:
- Growth-focused RIAs: 4% to 7% of gross revenue.
- Startups / Breakaways (Years 1-3): Up to 15% of revenue.
Before increasing your spend, ensure you understand your unit economics. Use our LTV Calculator to determine exactly how much you can afford to spend to acquire a client.