Advisor Today - July/August 2016 - (Page 14)
MANAGING YOUR PRACTICE
By Ayo Mseka
Getting the Wealthy Investor to Hire You
Here are three possible reasons high-net-worth investors will choose to do business with you.
hat do the wealthy value
in a financial advisor
relationship? In an
environment in which they are
pursued by just about every advisor
who is running a financial practice,
what will it take for the wealthy
investor to do business with you?
The answers to these questions can
be found in Captivating the Wealthy,
a book by industry consultant and
marketing strategist, Bryce Sanders.
This easy-to-read book addresses the
complex task of acquiring
high-net-worth clients, complete
with step-by-step action plans for
achieving this goal.
According to Captivating the
Wealthy, you stand a better chance of
getting HNW consumers to consider
throwing business your way if:
* You've made someone they know
money. This is the primary outcome
that many people want from their
financial advisor-an increase in
money. Think about a conversation in
which someone refers a prospect to
a financial advisor. The conversation
might go something like this: "You
should do business with my broker,
John Smith. He is very good." The
response to this request: "What
makes him good? How much money
has he made for you recently?"
* You possess relevant knowledge.
This means that you have solved
a problem for someone else, and
that problem is similar to theirs.
People look to you as a provider of
solutions. So if they have a problem,
they select you because they think
you can fix it. For example, a
prospect may have chosen early
retirement and has a need to roll
over his 401(k) funds to an outside
custodian. He sees ads from every
bank, brokerage firm and insurance
company, announcing that they
are "in the business." The prospect
knows that this is an important
14 ADVISOR TODAY | July/August 2016
Make things easy for them, help them get organized and
assist them in developing a financial plan.
decision and he does not have
enough information. But he has
heard that you helped another
person who was in a similar
situation; so, he contacts you.
Experience also counts as
"relevant knowledge." The stock
market is cyclical and in this example,
it is a bear market. The prospect has
a relationship with another broker,
and his level of experience with that
broker is less than two years. This is
the prospect's first bear market. He
does not know how long it will last or
how to adjust his investment strategy
to protect his assets. He is likely to
consider moving to another financial
advisor who offers more experience.
That advisor possesses "relevant
knowledge" because he has been
through bear markets before.
* You can help them organize
their financial matters. Many
investors have money in different
places-CDs, municipal bonds,
variable annuities, etc. Getting
these documents organized equals
making things easy for them. It is
often a chore for many people to
keep track of all their statements,
stay on top of gains and losses and
communicate with their accountant
in a timely manner. So you can
make things easy for them, help
them get organized and assist them
in developing a financial plan.
These three values need to
be communicated regularly and
consistently to prospects, Sanders
writes, mainly because they tend
not to keep them top of mind. As an
advisor who wants their business,
you need to "advertise these skills"
so that they can make the connection
and choose you.
Bryce Sanders is president of Perceptive
Business Solutions Inc. in New Hope,
Pennsylvania. Captivating the Wealthy
Investor is available on Amazon.com.
Table of Contents for the Digital Edition of Advisor Today - July/August 2016
From the Editor
A Question of Ethics: Reflections on the Dol Fiduciary Rule
Getting the Wealthy Investor to Hire You
Positioning Whole Life for Success
Rewarding Clients for Engaging in Healthy Activities
Feel the Heat: Sizzling Strategies for Boosting Worksite Sales
The Challenges of Writing Business Insurance
A Lifetime of Success
Safeguarding Your Business Interests
NAIFA Presents Nominees for Election
What’s Behind Brand Magic?
Making an Effective Call Back
A Story for All Your Clients
Ideas to Expand Your Practice
Advisor Today - July/August 2016