Where does a significant portion of many brokers' new business originate?

A significant portion of many brokers' new business originates from referrals and referral-based cross-selling because these methods leverage the trust and relationships established within networks. When clients are satisfied with the services provided by their broker, they are likely to recommend that broker to friends, family, or colleagues. This word-of-mouth marketing is powerful, as potential clients consider referrals from trusted sources to be credible. Additionally, referral-based cross-selling allows brokers to offer complementary products to existing clients, further strengthening relationships and increasing the chances of gaining new business through those clients’ networks.

Online advertisements, while useful, typically do not create the same level of trust as personal recommendations. Industry conferences can provide networking opportunities but don't directly lead to new business without the referral element. Direct cold calls can be effective in some scenarios, but they often lack the personal connection that referrals provide, making them a less reliable source of new business for many brokers.