A different way to snare clients

Sometimes, the best way for a financial adviser to get ahead is by taking a page from the past.

Sometimes, the best way for a financial adviser to get ahead is by taking a page from the past. That’s what New York-based adviser Ella Newman did when she created her Inner Circle Salon.

“I saw an exhibit at the Jewish Museum about the salons in Europe and the United States in the late [1800’s] and early 1900’s. These were forums for sophisticated, intelligent people to gather and discuss what was new in art, literature, music, theater, philosophy and politics,” Ms. Newman said.

“They often brought in philosophers, financiers and artists to talk about their work,” she said. “Women were instrumental in developing these salons, which were usually held in their homes because otherwise they would not have been exposed to these new ideas.”

A relationship manager in private banking, with assets in the $150 million range, Ms. Newman had held events and brought people together before.

“It was usually around a product or program, and sponsored by the institution. The idea here was to take a broader focus,” Ms. Newman said.

“People would come because they were interested in what you had to offer them beyond the financial aspect,” she said. “It diffused the sale focus and was less threatening.”

The women in the group include clients, prospects, professionals (including attorneys and accountants, who could be referral sources), philanthropists, wives of corporate executives and networking friends.

“The common denominator is that they have engaging lives and a wide range of interests. We wanted people to feel honored to be invited into this select circle,” Ms. Newman said.

Her salon is held in women’s homes. In addition to wine and hors d’oeuvres, Ms. Newman invites a speaker to trigger conversation.

Speakers have included an executive coach, an author, a graphologist and a senior executive from network news.

“People come away with new ideas and new connections,” Ms. Newman said. “A guest with a new product found a distributor, another member connected to a new hire and a third person landed a consulting assignment.

“And I have gotten business and referrals from a number of people in the group,” she added.

“When I started the salon, my firm was concerned that it might not pay off,” Ms. Newman said. “By creating this environment and giving something without looking for something specific in return, people know I care about them and can be trusted.”

After 10 years at one bank, Ms. Newman was recently downsized because of the merger.

“In addition to taking my credentials with me to my new firm — an MBA, Series 7 and 63, insurance licenses and so on — I have the salon. My business development program is intact and portable because it was not built around the company but around the members of my group,” Ms. Newman said.

What are the essentials for success?

Extend your reach. Ms. Newman started the salon with a partner. Consider asking a like-minded colleague in another area to join you — your pool of potential members is instantly doubled. As you assemble your guest list, ask members to bring a friend, reminding them that the goal is quality, not quantity.

Think outside the office. Resist the urge to hold your salon in a conference room. A home is ideal since each host adds to the mix of guests. If a home isn’t available, consider a jewelry store or other high-end retailer, a private club or a restaurant.

Stimulate the group. As the goal is to expose salon members to new information and ideas, the most important step is assembling an interesting program. Your local university or newspaper might yield a good speaker. Wine tastings and cooking lessons are also fine options. This isn’t the time to have your attorney talk about estate planning or your CPA discuss year-end tax strategies. Avoid the trap of a golf outing or football game, though you could have a golf pro talk about the perfect putt, or a local coach come in to size up the new season.

Make it special. People know when they are part of something special. Each element — the other guests, the location, the speaker, even the food — reinforces that belief. Also, something special doesn’t come along that often, so two or three times a year is enough.

“It’s not a networking group, though networking certainly happens,” Ms. Newman said. “A salon has a deeper sensibility and no pressure, which can be present in networking groups.”

Libby Dubick is president of Dubick & Associates Ltd., a New York firm that helps advisers and financial services firms identify and develop distribution and marketing opportunities. She may be reached at [email protected].