As a financial advisor, your ability to bring in new clients determines the health and future of your business. But do you know what it actually costs to sit in front of a qualified prospect? Understanding your Cost Per First Appointment (CPFA) isn’t just a nice-to-know figure—it’s the most critical metric for driving sustainable growth.
Why Does Cost Per First Appointment Matter?
The Cost Per First Appointment represents the true cost to get a qualified prospect in front of you for an initial meeting. This is the engine of your business—every relationship, every sale, and every revenue opportunity begins here. If you’re not tracking it, you’re essentially flying blind.
Here’s why it’s so critical:
- Profitability Insight: Knowing your CPFA helps you determine whether your marketing and lead generation efforts are truly profitable. Are you getting a solid return on investment (ROI)?
- Resource Allocation: By understanding where your marketing dollars are going, you can pinpoint which channels are driving the most cost-effective results and double down on what works.
- Scalability: If you want to grow your practice, you need to forecast how much it will cost to scale your lead generation and appointment setting. CPFA gives you the foundation to do that.
- Business Efficiency: A high CPFA could mean inefficiencies in marketing, targeting, or appointment scheduling. Without knowing the number, you can’t fix the problem.
Real Data: Cost Per First Appointment Benchmarks
Our takeaways from working with financial advisors across the country reveal just how wide the range can be:
- Lowest Cost Per First Appointment: $1,034
- Highest Cost Per First Appointment: $2,716
- Average Cost Per First Appointment: $2,181
- Median Cost Per First Appointment Held: $2,488
- Average Cost Per First Appointment Scheduled: $1,666
- Median Cost Per First Appointment Scheduled: $1,847
One trend stands out: Smaller firms with fewer appointments often reported lower costs per first appointment scheduled. Why? Likely because their marketing budgets and campaigns are more narrowly targeted, whereas larger firms spend more to scale their appointment-setting efforts.
What This Means for You
If you’re not already tracking your Cost Per First Appointment, it’s time to start. Here’s what to do:
- Calculate It: Add up all costs associated with marketing, lead generation, and appointment setting in a specific period, then divide by the number of first appointments held.
- Benchmark Your Numbers: Compare your CPFA against these industry benchmarks. Where do you stand?
- Optimize: Identify where your marketing dollars are being spent inefficiently, and reinvest in strategies that yield lower CPFA without compromising quality.
The Bottom Line
Your Cost Per First Appointment is more than a number—it’s a lens into the health of your marketing engine and a predictor of future growth. Advisors who know this metric can scale smarter, manage their budgets better, and focus on what matters most: meeting with qualified prospects and building client relationships.
Not sure how to calculate your Cost Per First Appointment? Let’s talk.
Reach out to us today, and we’ll help you Know Your Numbers so you can take control of your business growth.
