Best Strategies to Attract High Net Worth Clients
It is a dream of every advisor to acquire and retain High net worth (HNW) clients.
To succeed at gaining these individuals’ attention you need to have a corner on the market. Additionally, those who eclipse from a pack, take on a different approach.
So, if you are someone doing things the traditional and ineffective way, here are the best strategies you should follow, right now, to attract the HNW individuals.
Do you know the 80/20 principle?
Okay, let’s look into it.
All of your clients are not equal. 20% of your clients are responsible for 80% of your revenue while 80% of clients generate only 20% revenue.
Yes, it is eye-opening that only 20% of clients generate 80% of your revenue.
While the 80% who make up only 20% of the revenue are the ones that take most of your time and at the end pay you contribute peanuts to your bottom line.
Now think of it for a moment. Do you want to work with those 80% clients’ group or the 20% ones?
The fewer clients that are responsible for a major portion of your revenue are the ones you should work with often. These are the High Net Worth individuals who are willing to pay higher. Consequently, they pay high for a premium service.
Take the following questionnaire:
Who are these clients that make up a large portion of the revenue?
What is common among these clients?
Now we get to the million-dollar question:
How to find more clients like these?
For that, you need to figure out:
What are the problems these people face when investing or dealing with assets?
What can I do to present myself as the one who has the solution?
How can I grab their attention and get them to work with me?
Well, long story short-Specialize.
If you are the jack of all trades and master of none, then you are not the one who will stand out. Specialize in a niche.
Offer your HNW client, something no one else can or very few can.
Become the jack of all trades, and master of one! You can rise above the other advisors who have head to head competition. This will give you an edge and will help you gain clients that are looking for specifically someone like you.
Targeting HNW (High Net Worth) Individuals:
Your brain might tell you; HNW individuals are very few, that’s why you work with only 20% of such clients. They are very difficult to find because they are rare.
Well, it isn’t true.
There are more than 19 million HNW individuals in the world, according to the World Wealth Report 2020. HNW individuals are increasing and they grew from 18.1 to 19.6 in the last two years.
You need these people to work with you. But how?
HNW individuals have complex financial needs. Not every advisor can help them. They want a solution that works and is fast.
The faster you can solve their problems, the more dependable you will be for them. Cut time out of the equation. You and your clients both want promptness.
What do HNW individuals need?
Below is a breakdown of what these clients will want from you:
- A Trusted Advisor
- Wealth Preservation
- Business Succession and Estate Planning
It looks simple and it can be simple. High net worth individuals have a situation where they need to invest large capital, therefore, they have too many options. They need help selecting the right one. You are required to give them the right advice.
Another thing that is different in their case; is-wealth protection. Most HNW individuals are not only interested in the growth of their assets but also the protection of their wealth. Their concerns are more about the maintenance of their cash flows and assets.
HNW individuals also have different approaches to invest and plan. Their financial needs are not simple. This is why working with them can be challenging and complicated.
They also like to work with people who are reliable and professional. They tend to fire advisors who don’t attend their calls and reply to their messages.
Usually, they work with two or more advisors or wealth management firms so they have more than one perspective of looking at things. You can, therefore, be one of their advisors who provides great financial advice.
How to make HNW Individuals your Clients?
There are two things you need to know; you have to find the HNW individuals and then grab their attention.
If you want to find an HNW client through the traditional way of prospecting, you may not be very successful. These archaic strategies don’t work anymore.
The best way to find HNW individuals is through LinkedIn and Facebook.
You have heard of these two ways multiple times and they don’t work for you, I know.
They don’t work for you because you are not grabbing the attention of the HNW individuals.
If your Facebook and LinkedIn strategies are vague and there are hundreds of other people who use the same words to offer the same service, how are you planning to grab the attention of HNW individuals? These individuals are smart enough to judge your motive and quality of service.
They won’t click to read your ad or post if it is not a premium service and the ad is not an attention grabber.
For the HNW individuals, you might appear as another average financial, insurance, or loan advisor trying to sell your service.
On the contrary, Top advisors who manage to crush it are using advanced marketing tactics.
There are thousands of ways you can advertise your services effectively, in a nutshell, to grab the attention of HNW individuals; speak to their problems.
Just like when you are looking for a specific color, size, or material of a shirt when you see an ad of a product having the same features, you cannot resist but click to see more. Similarly, when you advertise yourself as someone who can offer a solution to the HNW individuals’ unique problems, they will reach out to you.
The HNW individuals have financial complications and they are bothered by problems all the time. If your message resonates in front of them at the perfect time, you will get a response from them.
Offer them insight and solution to the problem. Show them that you understand their pain point and offer to solve the problem.