While as a financial advisor you may want high-net-worth (HNW) clients, do you know why these desirable prospects would choose to work with you? And do you know one main reason why they would not work with you?
5 reasons why HNW clients will do business with you
Four of these reasons are likely already in your arsenal. The last one, surprisingly, may not be.
- Reputation of your firm. It has been around forever. Its commitment to the community is measured in decades. It’s award-winning and in excellent financial condition. Many people choose a firm because it’s considered the best.
- Found by referral. You have helped someone they know. That friend is in the same economic bracket. They consider each other peers, and they gave you a great endorsement when they were asked, “Who do you work with?” or “Who do you know?”
- You made someone money (or saved them money). Very often the referral scenario described above is followed by, “Has she made you money?” You can see how that aligns with the financial advisory and wealth management side of the business. However, they’re also concerned with protecting capital. That has a clear connection to the insurance industry. Protection is a key industry expression.
- Possessing relevant knowledge. If their situation is complicated, they want someone who is already up to speed. If they’re a doctor who owns a practice, for example, they likely want an advisor who has worked with doctors for years and understands their unique needs. If this is your niche, you need to get the word out.
- Making things easy. This might be a surprise. Busy people don’t want to focus attention on their investments all the time. They are often glad to outsource the process if they trust the advisor. If you can get them organized and consolidate everything under one roof, they often find this attractive.
You might say, “I tick all five boxes!” Do your friends and clients know that, though?
The No. 1 reason high-net-worth clients wouldn’t work with you
You are the lowest-cost provider. People head to Walmart because they have a price match guarantee. That’s not you. You provide a high level of service that adds value to the relationship. Wealthy individuals are prepared to pay the posted price.
Bryce Sanders is president of Perceptive Business Solutions Inc. His book, Captivating the Wealthy Investor, can be found on Amazon.
Learn more about working with wealthy clients
3 easy steps for meeting HNW prospects
Ways to use gifts to say thank you — and drive referrals
Why clients don’t do more business with you