# Why Traditional Advertising Fails for Accounting Firms
Written on
Chapter 1: The Illusion of Advertising Opportunities
In almost every accounting firm's CIM I’ve encountered, there’s a recurring theme labeled "opportunities." Without exception, sellers tout advertising as a remarkable, yet underutilized, path for firm growth after the sale. They often claim that their expansion over the years has solely come from word-of-mouth referrals, insisting that the firm is poised for significant growth with just a little investment in marketing.
However, this notion is misleading. Initially, I too believed advertising was a golden opportunity and invested considerable time and funds into various marketing strategies, only to see minimal results.
In this article, I will share my insights and experiences. The accounting field is fundamentally driven by relationships and reputation, with growth typically occurring organically over time. Unlike searching for a dumpster rental online, where visibility might dictate choice, clients are highly selective about their accountants, often making changes only in dire situations.
Furthermore, acquiring accounting clients is largely a result of delivering consistent, high-quality work over time. This fosters a reputation that makes your firm referable to others who trust you with their recommendations.
In essence, while marketing may seem enticing, it often turns out to be an illusion. Below, I will detail the marketing efforts we undertook and the outcomes.
Section 1.1: Print Advertising
We invested in a prominent local business magazine, securing the inside cover for six months at a cost of $1,200 per month to promote our firm, services, and pricing. Despite this, I received only one inquiry from a potential client, which ultimately did not convert. A few acquaintances mentioned that the ad looked great, but it’s hard to deposit “great” in the bank.
Section 1.2: Meta and Twitter Advertising
We launched numerous campaigns across both platforms, employing a mix of broad and targeted messaging. Although our cost per impression and click were impressive, we received no new business from these ads. Despite efforts with specific offers and general promotions, not a single inquiry came through.
Subsection 1.2.1: Blogging Efforts
Section 1.3: Book Distribution Strategy
We aimed to give away books to our existing clients to enhance the value we provide, as well as to potential clients to showcase our expertise. This tactic also plays into the reciprocity principle—give, and you might receive in return.
We are in the process of finalizing four out of five books and plan to distribute hundreds of copies, hoping they will aid in prospecting. While I remain optimistic, I’m cautious about directly linking these books to new client growth.
Chapter 2: Exploring TikTok
Though I’ve hesitated to engage with TikTok, I recognized the potential for honing my speaking and presentation skills through this platform. Each video I’ve posted has garnered 200-300 views, but not from prospective clients. While I discuss accounting topics in an entertaining way, I’m skeptical about the platform's effectiveness, especially with its uncertain future.
Chapter 3: Community College Pro Bono Consulting
I dedicate time each month to consult with 3-4 local entrepreneurs, providing guidance on fundamental topics such as LLC structures, bookkeeping, and tax regulations. These entrepreneurs are often just starting out and are appreciative of the support. Although there is no guarantee of future paid work, many of these relationships develop over time. As these entrepreneurs grow and seek accounting services, they often think of us first. This initiative will be our primary focus moving forward.
Section 3.1: Local Networking Initiatives
I have participated in various local networking events, such as Rotary, but have yet to see tangible results. The organization primarily consists of older members and other service professionals, with few potential clients present. Moreover, the emphasis at these events tends to be on community rather than business, limiting opportunities for self-promotion. While these relationships may prove beneficial in the long run, I find it challenging to invest more time, especially since I am not a local.
Conclusion: Rethinking Marketing for Accounting Firms
If you acquire an accounting firm, be wary of the promises that investing in marketing will rapidly expand your business. The accounting industry is unique; clients are highly selective about who they work with, and building these relationships takes time. While marketing initiatives may yield unforeseen benefits, my experience has shown that most have been disappointing. The strategies that have borne fruit are those that foster organic relationships with individuals seeking accounting services and who do not yet have a trusted firm.