If you’re starting out as a financial advisor, having any type of client is good news. However, to achieve a high level of success in the industry, securing and retaining high net worth investors is vital. Clients who have a substantial amount ready to invest mixed with the need for financial support is the sweet spot that advisors should strive for. This can help differentiate your service and revenue from your competitors in return.
Although landing high net worth investors may be the goal for many, they’re not as easy to onboard than lower-income clients. Those who are trying to get their practices to the next level need to differentiate their unique value proposition and think strategically. So, if you’re ready to attract big clients, keep on reading for our best strategies and soon reap their rewards.
Ways to Land High Net Worth Investors
Recruiting wealthy investors doesn’t just happen overnight, it requires specific planning that is underpinned by your expertise and unique value proposition. This is especially true if you’re looking at securing clients for the long run.
To develop a winning plan, it’s essential that you assess your potential investors’ needs. Those who are in a higher net worth bracket are looking for vastly different financial advice than those who earn less. If you’re currently offering straightforward investment services, it may be time to extend your skills.
Generally speaking, wealthy individuals are seeking assistance in the following areas:
- Estate planning
- Tax-driven investments
- Philanthropic planning
- Wealth management that includes non-traditional assets
Furthermore, a key consideration in planning your list of services is inheritance planning. Wealthy investors are not only looking at their immediate future and are more likely to consider long term solutions to their funds. According to Wealth Management.com, 75% of affluent parents place value on inheritance planning. As an advisor, it’s essential that you are able to cater to these needs in order to stand apart from your competitors.
Being proactive and preparing your office and resources for high net worth investors comes strongly recommended. Keep in mind that these types of clients are looking for an efficient service that’s prepared to serve their needs. This means that if you have tedious workflows or manual spreadsheets, you may quickly become overwhelmed with the workload coming your way.
The better prepared you seem as a financial advisor, the easier clients will be able to trust in your skills. With ineffective processes in place that take up your time and increase your chances of misplaced information, clients can quickly be deterred. Luckily, technology is here to support your business and free up your time. Considering a SaaS (Software as a Service) program such as Britech can make investment management faster and simpler.
Focus Your Clientele
Of course, it’s easier to say your outreach techniques are focused on reaching individuals with a certain amount of assets and digits in their bank accounts. However, each client is unique and so are their needs and interests. Landing wealthy clients goes beyond cold calling and simple marketing strategies - it requires focus and constant monitoring.
There are a few ways for financial advisors to narrow their client base but the most important note is that it’s key to get to know your clients on an intimate level. Once you get a firm understanding of who they are and what they’re looking for, you will be able to personalise your service to match their requirements. Attending seminars, philanthropic events, and fundraisers can be a great way to build connections with the right people.
Another channel that financial advisors should consider when reaching out to prospective clients is their website. Your website is your digital calling card and should showcase a sophisticated and sleek service. When an interested investor comes across your site, they should be able to view your portfolio and stay in contact with their advisors on any device. An excellent online experience is especially important if you’re looking at targeting wealthy millennials.
Use Your Referral Network
Nothing instils trust more than getting a recommendation from an existing client. Having clients who can vouch for your services can build confidence in prospect investors and help them learn more about your business. If you have a client who you know is in contact with a higher net worth individual, there’s no harm in asking for an introduction either.
If client referrals aren’t an option, there are numerous other avenues to explore. These include:
- Networking on LinkedIn
- Attending business events
- Partnering with other high net worth services
Expanding on the last point, building a partnership with individuals or business to help grow your own network can be very effective. Finding attorneys, CPAs, and other legal service providers can put you in front of your ideal investor. For those seeking legal advice, your partner can refer your services should they require financial management with the same being done for your clients.
Understanding that success doesn’t just happen is important. You may feel a lot of pressure to implement changes and see immediate results, but this is not always the case. Attracting and landing high net worth investors takes time. Think of it this way - if you had thousands or millions to invest, you wouldn’t decide who manages your wealth overnight, would you?
Even though it can be challenging, it’s vital that you continue to serve your current clients while nurturing your potential pool of investors. Investing your time in the above strategies will help build your business and increase your chances of expanding your revenue.
The Bottom Line
When landing high net worth clients, building trust and showcasing your skill is key. With high volumes of wealth in your hands, these investors need to feel assured in your expertise and that their future is secured. For financial advisors, this should make up the base of any client outreach strategy, regardless of net worth levels.