How Advisors Can Attract, Retain High Net Worth Clients

Clients with a wealth of capital to invest are widely sought after by financial advisors, and for good reason. High net worth clients can be a boon to an advisor firm’s business. According to John J. Bowen, Jr., writing a column in Financial Times, advisors can potentially double their income and increase their total assets under management by a factor of three by focusing on high net worth clients.

While the same tactics used to attract any other client may be just as effective, the circumstances of a high net worth client may necessitate special strategies. High net worth investors aren’t looking for a bargain, necessarily. Rather, they are looking for a good experience, trustworthy advisors and overall, results.

Make your experience your brand

Bowen, Jr. noted that attorneys and accountants are typically skeptical of referring their clients to financial advisors. This comes not from a lack of trust but a degree of uncertainty. One person’s experience with an advisor can vary wildly depending on their investment goals and their eventual outcome. Other professionals who manage aspects of a client’s life may not want to tarnish their own reputation if they refer them to an advisor who can’t deliver. And yet, advisors rely on a great deal of business coming from referrals. This is why it’s vital that a firm or individual advisor establish their brand as one based on extraordinary experiences.

High net worth individuals plan to work into retirement.

High net worth individuals plan to work into retirement.

“You will need to demonstrate to any potential partners that you have a systematic, replicable process that enables you to deliver great service to clients on a consistent basis,” Bowen, Jr., wrote. “By having a carefully crafted, well-defined process for working with affluent clients, you will be able to show these professionals exactly what their clients will experience when they come to you.”

In this same vein, advisors should consider building a rapport with local accountants and attorneys, as they will be the most likely to recommend their services to a high net worth client. Other professionals like life insurance agents, association executives, business brokers, investment bankers and other finance-centric individuals may be good people to network with, according to Bowen, Jr. Advisors should consider their target market beyond just high net worth clients and work out from that point. If an advisor or financial firm specializes in retirement investment, perhaps consider attorneys who work predominantly with older clients.

Look for unique networking opportunities

Strategic alliances with other financial professionals don’t just happen overnight. Advisors looking to grow their business, especially with regard to a niche market like high net worth individuals, need to be productive and creative. According to David Port, who interviewed a number of financial professionals about strategic alliances in LifeHealthPro, the more memorable the first point of contact is, the more likely a strategic partnership will form and succeed. Many advisors told Port that they frequented industry trade shows and conferences to meet potential partners. Some also provide free seminars or workshops on topics of expertise. By providing a contact method for further advice, advisors can establish themselves as knowledgeable professionals while simultaneously capitalizing on a marketing opportunity.

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