Tuesday, January 12, 2010

Affluent Sales Secrets

Dallas: “I’ve got some extremely affluent clients,” explained Mark in the Q & A session following my keynote address, then adding, “it’s hard to imagine prospects in these wealthy centers-of-influence being interested in any type of financial planning or influenced by the broad-based questions that you’re advocating.”

Like so many advisors, Mark didn’t understand the affluent, much less possess either the mindset or skills to sell his professional services to them. He was looking into the future with at least one-eye focused on the rearview mirror, “My wealthy clients are only interested in fixed income products -- this how it’s always been and it’s all they ask me about.” Obviously, there seemed to be a lot of issues holding him back. His question was actually an attempt to rationalize his struggles in affluent client acquisition, rather than admit that he was positioned as the “bond guy”.

Because Mark doesn’t understand today’s affluent investor (we do – that’s what our research is all about), he assumed his ‘wealthy’ clients, friends and colleagues were above any conversation that involved two simple broad-based questions:

• How has your wealth management plan held up?
• Have you had a second opinion on your family’s portfolio?

Mark had considered attending one of our Rainmaker Weekends, but he couldn’t pull the trigger –“Maybe it’s just the wealthy people in my market, but I don’t see them looking to change advisors.” Now let me walk you through a real life example of how Bill, a veteran advisor who attended a Rainmaker Weekend, successfully applied our affluent client acquisition process – the one Mark was clueless about. Incidentally, Mark’s wealthy clients are in the $5 to $10 million dollar range, the same range Bill is targeting.

The following is a live example that occurred during a social encounter – a holiday party – a time period where most advisors (Mark) are not marketing their services. I’m going to break Bill’s real-life example into its affluent client acquisition component parts:

1. Affluent Playing Field: Bill has changed his routine in order to significantly increase his face-to-face interaction with his affluent clients and prospects. He attended numerous social events and holiday parties, including a party thrown by a top client.

2. Pre-Work: By asking the host of the party (his client) who was attending, Bill was able to identify a handful of qualified names which enabled him to engage in a little information gathering homework (Google search for each).

3. At the Event: Positioning is always very important. Bill carefully made certain that he was engaged in social conversation with his client at specific intervals; those times when his client was interacting with one of the individuals from his pre-work list.

4. Recognizing / Orchestrating Opportunities: One of the pre-work attendees, an oral surgeon, after the host introduced Bill as “the guy who oversees his family’s financial affairs” started talking about the confusing nature of the stock market.

5. Proper Execution: Rather than engage in a conversation about the markets and investing, Bill simply smiled and said “That’s why we’re spending a lot of time providing second opinions on portfolios.” To which his prospect responded, “I could probably use a second opinion.”

6. Mini-Close: Instead of letting the discussion linger, providing too much information, or suggesting that he’d call and schedule an appointment, Bill mini-closed on the spot. He scheduled an early breakfast meeting for two days later.

7. First Meeting: The breakfast meeting, the first official meeting, served as a platform to strengthen rapport, and further the discussion initiated at the party. The oral surgeon didn’t bring all of his statements and admitted that he didn’t have a financial plan. At the appropriate time, Bill used this initial meeting to explain how he operates, the requirements he has for taking on a new client, and the next step he thought they should take (he had to take a thorough look at everything). At this point, the affluent prospect asked “How do we get started?”

Within two weeks over the holidays Bill had acquired new affluent clients and opened-up an entire new center-of-influence; his new client has already offered to introduce Bill to a close friend, another oral surgeon. Bill understands the affluent sales secrets and is capitalizing on the opportunity awaiting every advisor who is similarly prepared; 9 of 10 affluent investors would welcome a second opinion, 8 of 10 would consider changing advisors! It doesn’t get much better than that.

While poor Mark is wallowing away in excuses; ignorant of today’s affluent investor and prospecting opportunities. Which is one of the reasons Rainmakers like Bill have so little competition. Be like Bill -- go for it!