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Most financial advisors get clients through word-of-mouth and the occasional referral from an attorney or accountant. But let’s be real. As I’ve said in other blogs, this relies far too much on the actions and words of other people.
To actively grow your business, try these creative tactics.
Fundraise for a charity
Yes, notice I used the word “fundraise” rather than “attend events.” Who wants to shell out $500+ for a plate at the annual gala? You get one shot to impress everyone in the room. Cross your fingers that you do, or else you’ve blown a lot of money.
And guess what else? Every other financial advisor in the world has the same strategy and you’ll be in the company of the most elite of them – those who are doing well enough to be able to afford the price.
So forget about attending charity events. Try this instead.
Make a bigger impression, and a more lasting one, by being a driving force on a fundraising committee. As a financial advisor you’re a career salesperson. Many charities could use your expertise. The results you get will put you in a position to be admired and there’s no better way to get attention than that.
All of a sudden instead of a retirement calculator bearing, money-grubbing financial advisor you’re a human. Having people look at you this way makes the walls come down. Show your heart by supporting a cause that you truly care about. There’s so much that the act of giving can show the world about who you are.
Not only will some of the other committee members likely be wealthy enough to be your clients, you’ll be in the spotlight. You’ll constantly be exposed to the affluent donors who support the charity (as long as you pick an established one that is lucrative enough – no startups here, okay?). You never know whose heart strings you may pull by helping out their favorite cause.
Blog about something rich people love
Sorry, but there’s just no better way to say it.
You have to pick something that you truly believe in and become a passionate expert in this. There’s no better way to become part of the club than by expressing a sincere interest and a superior level of knowledge about something that is revered by the group you want to break into.
But let me tell you about my past attempt at this and where I failed. Years ago I used to be a financial advisor and I got the idea that I should meet affluent people at the opera. So I bought a membership to the Metropolitan Opera and attended a few shows. The problem was that I just wasn’t into it. It wasn’t something that lit me up. As a result, I didn’t stand out. It must have been obvious to people that I was there to be seen, and not because I had any real interest in the art form. I had nothing interesting to say.
It failed.
If I had to do it all over again, I would have picked something that was juicier to me, for example, Chanel handbags. I’m a lush for the quilted pattern and the braided metal strap. To me, it is the most elegant and delicate bag a woman could have. If I had a million dollars to throw away, I would buy a ton of Chanel handbags. I should have used the money I spent on the opera and bought myself a Chanel instead.
But just having a Chanel wouldn’t have taken me very far. How would I have marketed myself using this luxury taste of mine? Much like with the fundraising example, I should have established myself as a subject matter expert by blogging about Chanel bags. I could have made YouTube videos about it, or guest blogged on a site such as PurseBlog. There were so many ways I could have used my passion for Chanel to meet other consumers.
Examples of other luxury goods would be luxury cars like Mercedes or Ferrari (there’s a BMW Owners club on LinkedIn, by the way), ritzy restaurants, art, gushy vacation spots, high-end technology such as automated window treatments, jewelry and boats. You don’t have to own one to be known as a lover of these goods. As long as you genuinely love what you speak about and you have something interesting to say, that’s enough to fascinate and intrigue people into socializing with you.
When I had to find daycare for my first baby, I was neurotic. I mean, nutso. I had this huge fear of her being mistreated, so intense that it led me to conduct due diligence like I was the CIA. I wound up compiling everything I could find about every possible provider. Over time my little “database” became quite well known amongst the local parent’s community, and this was of tremendous benefit to other parents who were also cuckoo over this. I became sought out for this information. All this attention benefited me tremendously because I was a financial advisor marketing insurance and financial planning to families with young children.
But it takes too long!
Now I’m sure that some of you reading this are saying, “Hey Sara these are great ideas. But I have a mortgage to pay and this will take way too much time before any leads come out of it.”
The common misperception of marketing tactics, and this is one of them, is that you just have to do one at a time. I’m not faulting financial advisors for this misconception. I fault the marketing community at large, the so-called “gurus” who are out to convince you that all you need to do is hire them to get rich! It’s resulted in a great deal of mismanaged expectations.
Not every marketing tactic works on every buyer. You have to use a combination. Just make sure it doesn’t materialize into a Chaotic Picasso.
This strategy won’t yield results in a month. This is a long term strategy, not a Facebook advertisement. But that’s the point. If you want to reach ultra-high-net worth individuals (50MM+ people), they’re not going to respond to advertisements. It’s very hard to reach them cold. In order for them to pay attention to you, they are going to have to feel some connection and you have to make inroads into their circles. Yes, that takes time but the more sincere you feel about your interest, the easier and faster the process goes.
And plus – you want to do what many are not willing to do. Why invest the time? Because 99% of financial advisors won’t. As I’ve said in other blogs, most financial firms have no brand. Most of them want to talk about how they provide “comprehensive solutions” with a “proprietary model” when in reality there is nothing that different about what they do. And the follow up is all email or phone and maybe the occasional blog or newsletter about Roth vs. Traditional IRA or how to save for retirement. Nothing novel or intriguing there.
The wrap up on how to meet rich people
Here’s my shocking idea on the best way to grow your practice.
Go in person or online to where the money is and have something exciting and intriguing to say that you sincerely believe in, or make a powerful contribution to someone in the world who needs you, and do it in the presence of those who are financially well off. Do this and you’ll eventually become accepted into the affluent society you need to be a part of to grow your practice.
Sara Grillo, CFA, is a top financial writer with a focus on marketing and branding for investment management, financial planning, and RIA firms. Prior to launching her own firm, she was a financial advisor and worked at Lehman Brothers. Sara graduated from Harvard with a degree in English literature and has an MBA from NYU Stern in Quantitative Finance.
Read more articles by Sara Grillo
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
