Every advisor wants to find more affluent clients, but many despair of doing so when the market is at an all-time high and portfolio performance is looking good.
This mindset, aside from being just a tad defeatist, is based on the misconception that performance is all that wealthy clients are looking for. Nothing could be further from the truth.
In fact, wealthy clients are not loyal to their advisors because their investments perform well. The high net worth crowd is looking for a lot more than performance; they want a broad and comprehensive range of services and, more importantly, they want a strong personal relationship with their advisor. They’re typically savvy enough to understand that strong performance in a bull market may have little to do with the advisor’s skill.
If you want to pinch these clients, you’ve got to understand what makes them tick. And you’ve also got to understand the differences in perception between clients and advisors. One survey showed that 25% of clients felt they had a social relationship with their advisor, while 75% of advisors thought they had social relationships with their wealthy clients. Obviously, everyone is not on the same page.
Clients want an advisor who can see the big picture, and manage their finances comprehensively. What they really need is a “financial quarterback,” or someone who can see the overall strategy and ensure that it’s correctly implemented, as well as manage the different professionals who are necessary to implement that strategy.
So how do you lure these juicy targets into range? Try asking prospects if their advisor has reviewed their financial plan recently. If not, you’ve got the perfect opening. Perhaps you could also ask when their financial documents have last been reviewed. Design your questions to stir up a bit of dissatisfaction, and see how many new business opportunities might come your way.
For more information, please read:
How to Steal Clients in a Bull Market | Wealth Management