Wealthy Clients and Propsecting

Wealthy Clients and Propsecting

By Ann O'Brien | January 5, 2016

ProspectingIn the financial services industry, we are all aware of how important wealthy clients are to our businesses. For example, one financial advisor who manages over $26 million for his clients nets more than $200,000 a year. Because wealthy clients are so desirable, you need to use more sophisticated strategies when prospecting to them. Generally, they prefer to find you rather than have you actively seek them, so it is important to build relationships in a non-aggressive manner. Listed below are several steps for finding high-income individuals and retaining them as clients:

  • Decide which group of individuals you want to target. Then focus the majority of your marketing efforts on this group. Business owners, top corporate executives, and professionals produce the highest concentration of millionaires, so you might choose to start with one of those groups.
  • Research your target group by reading trade magazines, talking with people in the group, sending out a fact-finding survey, and asking questions during interviews. You should seek to find out their common investment objectives, concerns, and information about their lifestyles.
  • Write an article for a newspaper or magazine on a topic that pertains to this group. This will create a public image for you and will allow your prospective clients to become familiar with your name and investment ideas. Follow up with a monthly client newsletter.
  • Speak at meetings and seminars where you will get the chance to meet these people face to face and establish credibility. Or volunteer for an organization whose members reflect your target clients. One financial planner served as a finance chairman for a re-election committee, which gave him the opportunity to market his services to those invited to the fund-raisers.

In addition to the above steps, referrals from your existing clients are also an important way to reach high-net-worth individuals. Statistically, 60.5% of wealthy investors say that they feel they are influential in referring advisors to their friends and relatives. Because of this, it is important to maintain a consistent process when servicing your clients. From conducting a fact-finding interview to developing a financial plan to setting up client meetings, your clients need to know exactly what their friends will experience with you. When your clients learn to trust you, they will feel comfortable referring their friends and your client base will grow.

Newsletters can also be an effective way to prospect to wealthy investors. An effective newsletter will impart interesting information to your readers, thus enhancing your credibility and expertise in the eyes of your clients. It will also give you an opportunity to keep your name in front of your prospects so even if they don’t call right away, your name will be there when they realize they need your services.

As with any prospects, building relationships with high-net-worth individuals is crucial to retaining them as clients. Following these steps and keeping these ideas in mind will help you create alliances with your target audience and send you on your way to maintaining the client base that you desire.

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