There’s plenty of good reasons to reach out to the children of your best clients, and get going on the task with alacrity.
The young generation is set to inherit a record amount of wealth over the next few years – ignore them at your peril. Repeated studies show how the children of good clients frequently abandon the family advisor as soon as the estate passes into their hands. The usual reason is neglect: the advisor never offered advice, so there was never a chance to build a trusting, productive relationship.
It’s a mistake to avoid. But if you have many clients, that means multiples of youngsters (most of whom are in fact quite mature, often with good careers and hopes for their financial future) who need your service. How should you prioritize the task?
Start by listing your 100 top clients – we suppose the list could be shorter or perhaps a touch longer – substantial, but not unmanageable. Consider the amount of assets under management, their openness to advice and the future promise of the account – does it offer significant growth? The names, age and other vital info about their children should also make the list.
The next part of the exercise may be difficult, but fruitful. You’ll need to rank the children based on three criteria: inheritance potential (how much wealth would their parents entrust into their hands?), current income (you might not be privy to exact amounts, but tools like LinkedIn can get you in the ballpark) and finally COI potential – that’s ‘centers of influence’ to the uninitiated (how likely are they to link you up with other potential clients).
Once you’ve identified the best prospects, it’s time for first professional contact: simple enough if you’re acquainted, and not too difficult, if tactfully managed, with a stranger. LinkedIn is again a good avenue for making your first outreach.
For more information, please read:
Marketing to Clients’ Children | Wealth Management