Five tips for snagging the wealthy

What if I were to tell you that my firm had empirical data that clearly highlight a basic fact: Attracting affluent individuals is actually quite simple. I know, it's hard to believe.

What if I were to tell you that my firm had empirical data that clearly highlight a basic fact: Attracting affluent individuals is actually quite simple. I know, it’s hard to believe. But hold on — by “simple,” I didn’t mean easy.

The majority of financial advisers are out of sync with today’s affluent because they are:

• Wasting a lot of time and money on the wrong activities.

• Engaged in the right activities but executing them poorly.

• Still on the sidelines getting ready.

As a result, amid the greatest affluent-marketing environment financial advisers are likely to experience in a lifetime — with eight of 10 clients expressing enough statistical dissatisfaction to consider changing advisers and nine out of 10 willing to entertain a second opinion — only 1.9% of advisers are reaping the benefits by bringing in 10 or more clients a year with $1 million or more in assets.

A recent survey of 4,000 financial advisers found that the following are the top five techniques that a select group of financial advisers, whom we classify as “rainmakers,” are using to bring in wealthy clients in today’s environment.

Arranging introductions. With skepticism of anything involving financial services at record levels, all communication with the affluent must be upfront and personal.

Rainmakers of today have become very skilled at sourcing names of people who are connected to affluent clients, referral alliances or centers of influence and then very strategically making certain they are personally introduced. Today’s affluent don’t like salespeople, particularly from financial services, so the execution needs to be natural.

Generating referrals. This is a first cousin of our top-ranked activity. However, there are a number of distinctions financial advisers must understand.

First of all, there is a difference between direct and indirect referrals. Most good advisers get the occasional, “I gave your name to a colleague; expect Bob Smith to be calling.”

This is referred to as “indirect” and is how most referrals are generated. Directly asking affluent clients is a dicey proposition: 83% of clients reported feeling awkward being asked, but 79% still said they would gladly introduce the adviser to a friend or colleague.

Referral alliances. There is a reason every financial adviser seems to be attempting to create a referral alliance with accountants and attorneys — they can be excellent referral sources. However, most advisers come across as salespeople attempting to get access to their clients. Rainmakers enjoy successful referral alliances because they have first taken the time to develop personal relationships. Remember, these professionals are at least as skeptical as today’s affluent investors, and they’ve heard it all from financial advisers pitching referral alliances.

Strategic networking. Today’s elite advisers are very skilled at getting in front of opportunities. To use a Wayne Gretzky analogy, they skate to the money. By joining the right organizations, belonging to the right clubs, volunteering for the right causes, attending the right social events, playing host to targeted social events, these advisers combine business with civic duty and pleasure. The key is to have a working knowledge of where people with money spend their time, and make it part of your marketing campaign to join them.

Intimate events. Small social events are the perfect venue to show your appreciation for your top clients and simultaneously penetrate their centers of influence. Affluent clients are more likely to attend and bring a guest if the event is appropriate to their lifestyle. Rainmakers understand this, which is why it is one of the top marketing tactics.

When advisers are introduced to these hot tactics, there is an initial tendency to view them as casual activities rather than the core of a successful marketing campaign. This is a mistake.

Matt Oechsli is an industry speaker, researcher and writer. E-mail him at [email protected] or visit oechsli.com.

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