For many financial advisors, the goal is to find clients with assets between USD 1 and 5 million, a kind of sweet spot. However, many older clients, including high net worth clients, are used to managing their money in a certain way and may not be interested in changing.
Investors between the ages of 21 and 45 may offer more liquidity, as they are likely to experience life-changing events that require financial planning. This age group is also open to new ideas, although they tend to have less money than older clients.
It is a good idea to have a specific target group, but no doors should be closed. The main objective must always be to act in the interest of the customer. Only in this way will you get the most business in the long term. How do you get the ball rolling?
- Get referrals from existing customers
Word of mouth is one of the best tools at a financial advisor’s disposal. It remains one of the most effective ways to attract new clients. Ask existing clients to introduce you to friends or relatives who might be interested in working with a financial advisor or recommending your services.
- Build a network of referrals
Get to know professionals in your neighbourhood and workplace, e.g. Doctors, lawyers, real estate agents and accountants. It is easy and effective to refer each other. The best deals are those where both parties win.
- Use social networks
Using Facebook, linkedin and X (formerly Twitter) to market yourself as an expert and find potential clients is not as effective as is often claimed, but any financial advisor who does not use these tools seems archaic or out of step with the latest technology. This is particularly unpleasant for young investors.
- Start a blog
Blogging financial advice and offering your opinions on current market trends may seem time-consuming, but the key to success is consistency (and brevity). If you update your blog regularly, at least twice a week, you will see your search engine rankings improve. The start is slow, but the upward momentum will accelerate if you keep at it. This way, customers will come to you instead of having to search for them.
- Write an e-book
If you want to become a respected authority in your field, you absolutely must write an e-book. The easiest way to do this is through Amazon.com Inc (AMZN) and its Kindle Direct Publishing (KDP) programme. It costs you nothing and you can not only find customers, but also collect royalties.
To find customers, leave your contact information on the front and back of the book. The front of the book is important because readers using KDP can view the first 10 per cent of a book for free with the ‘Look Inside’ function, which helps keep readers engaged.
Once a few books are published in a particular niche, Amazon will recognise the seriousness of the reader and its search rankings will improve. If you are looking for high-value customers, write books on topics that interest them.
- Engage in your community
If you want to meet more potential customers, engage more in your community. Consider volunteering for local non-profit organisations, attending networking events and attending community meetings. These events can be a great way to meet new people and build trusting and positive relationships with potential customers.
- Organise a party
Customer events – or even a birthday party for a specific customer – can be a very effective way to impress existing customers and reach new ones. Encourage guests to invite friends and family and ask to be introduced. It is an excellent opportunity to create many new contacts in a few hours.
- buy season tickets
Take an example from the marketing departments of companies and buy season tickets for a professional sports team, opera, ballet, etc. It may be expensive, but the investment is definitely worth it. You can take your customers to games or shows, which helps to build their loyalty. And the more tickets, the better: a customer is likely to invite a family member or friend, allowing you to build new relationships and acquire new customers.
- talk to local schools
Get in touch with secondary schools and let the headmasters know that you would like to talk to students about financial education and financial planning. This is valuable information that too many students do not have access to and many schools will jump at the opportunity. You may not have the opportunity to hand out business cards and brochures, but you can encourage your audience to ask parents about finances, saving for college and planning for retirement. Teachers and administrators will also listen to you.
- play sports
We all know that golf is a great game for socialising, but it is a sport usually reserved for couples. If you want to increase your visibility, consider joining a tennis academy, a softball league or a local fitness centre. You may not find as many qualified contacts as in golf, but you will find many opportunities.
What do high net worth clients want?
High net worth clients want what all clients want: to feel that the person managing their money understands them, knows their goals, understands their industry and is competent, knowledgeable and trustworthy.
Where can I find wealthy clients?
Wealthy customers can be found through word of mouth among your existing customers, but also by attending charity events, volunteering and attending sporting events.
What is meant by ‘wealthy’?
A person is considered wealthy if he or she has at least $1.1 million in assets under management or a net worth of more than $2.2 million.
The bottom line
There are many proven ways to attract new clients, from networking to golf. But it can be useful to be creative and go the extra mile, or spend an extra dollar to find new clients in unusual circumstances.