Elevating your practice: Meeting the HNW while making a difference

If you want to target the affluent as clients, it makes sense to connect with people with enough money to donate to worthy causes. You can meet them while you’re using your sales abilities yet not prospecting. Instead, it can be done in a way where you’ll help the community together. Here’s how this could work.

Many insurance agents and financial advisors have a charitable organization they care about. When you get involved with a nonprofit, though, you arrive with both a handicap and an advantage. The handicap is you likely are not the first financial advisor to cross the threshold. And depending on how that person acted, they might think you may do the same. This could be a disadvantage for you if the person seemed like they were more interested in selling than in the charitable organization.  

However, you have an advantage. You can sell! It’s how you direct your abilities that matters. Many volunteers involved with nonprofits are great at thinking of ways to spend money but struggle at asking others for it, so they write big checks themselves. You can help them by raising funds and asking people to donate. You can do this by joining the fundraising or development committee, which is tasked with the critical job of raising money.

Furthermore, you also may have a good understanding of who the community’s movers and shakers are since they might be on your wish list for clients. This also can be used to help the charitable organization.

Step 1: Make a contribution yourself. It doesn’t need to be huge, but it should be significant. This is important because you want to tell people you are personally a donor.

Step 2: Get an appointment to see that prominent person in the community you’ve had your eye on for a client. It is usually easier to arrange to see them about supporting the charity golf tournament than talking about life insurance. 

Step 3: Dress well, meet them and ask for a specific donation to sponsor a hole at the golf tournament or buy a table at the charity gala. When talking to them, use expressions like, “Join me in supporting (charity).” After all, you contributed first. They agree.

Step 4: Arrange to play alongside them at the golf tournament or sit near them at the charity gala dinner. You offer to introduce them to the major players at the charity. They will agree because this is a donor and you are cultivating them. Your objective is to see that they have a good time.

Step 5: You have gotten to know them a little bit. Perhaps golf is their hobby, so you can arrange to play a game together and get to know them on a personal level. Eventually while talking to them, you’ll identify a need or problem that can be addressed with insurance.

Step 6: Get back in touch, this time wearing your “insurance hat.” You mention the problem and how you have a potential solution. This is a business conversation. You present your proposal and ask for the order.

Why is it likely the guy will say yes? Why will he become a client? It comes down to the expression “the second check.” When you start a new client relationship, which check is it harder to get, the first check opening the account or the second check when they buy an additional product? Most people will say, “The first check is the hardest.”

For you, the check to the charitable organization was the first check. He wrote a check and had a great experience because of you. This check, the one starting the insurance relationship, is the “second check” in his mind.

Meanwhile, back at the charitable organization, the nonprofit leadership respects you because you can raise money. Suddenly, keeping you happy is important to them. This might lead to more personal business and referrals.

Getting involved with a nonprofit on the fundraising side puts you in the right place, making inroads into the local HNW community while doing good for a noble cause.

Bryce Sanders is president of Perceptive Business Solutions Inc. His book “Captivating the Wealthy Investor” is available on Amazon.

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  • Thank you for commenting on my article. You are correct. You need to volunteer and donate for the right reasons. Everyone, including HNW individuals will see that. Conversely, if you do something only to further a business aim, people see that too. You need to do things for the right reasons. Lots of good, including business, can flow from it.

  • High Networth Individuals have their own views and ways to Donate to community and They are taking care of their employees…They have their own trusts and Guiding Forces or personnel,where to Donate or How to donate..If Insurance Advisors are working with NGOs,These could create good impression and nice Goodwill too…But Insurance Advisors are working with NGOs for their self satisfaction..and these will give good credit by God and sound sleep to them personally..As and When H.N.I.s seen you working sincerely, spontaneously Bridge will be created… Service To Mankind should be our Motto..

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