Once you’ve selected your minimum account size, begin making it known at every opportunity—during client meetings, at seminars and client events, and in your advertising. Don’t be afraid to let people know that you “specialize in working with accounts of $500,000 and above.” One major benefit of having a minimum is that, as word spreads, you will earn a reputation for it. Communicated properly, this should lead to gradually acquiring larger accounts.

Granted, some of your smaller clients may become concerned that you are going to forget about them in favor of bigger fish. If you intend to retain these clients, you must do whatever is necessary to relieve their concerns. One solution may be to communicate new service levels at the same time you roll out your minimum account size. In this way, you can show all your clients a “menu of services” outlining the benefits that every client receives. Reassure them that even though your business is growing, you will continue to be loyal to the clients who are loyal to you. Use such conversations as a chance to thank them for their business and remind them that their referrals are still appreciated. If you handle such conversations diplomatically, you may even find that such individuals become better clients than ever, openly bragging about your firm because they like the prestige that goes along with having an advisor who only works with “select” families.

The way you explain your minimum matters most during one-on-one meetings. If you focus strictly on the dollar amount of the minimum, you could come across as self-serving. Clients and potential clients both need to understand how your minimum provides them with extra value. Be prepared to explain how having a minimum allows you to give your clients more face time, highly customized wealth management solutions, decreased fees, enhanced services or other benefits. In short, don’t have a minimum just for the sake of it; have a minimum because of the extraordinary service you provide.

When explaining your minimum to clients and prospects, you might say something like this:

“It has never been my goal to be all things to all people, but rather to be all things to a few people. For this reason, I must be selective about the families I choose to work with. Having a minimum account size allows me to work with fewer households and thus provide better service to my clients than many advisors do. I strongly believe this is something my clients deserve.” By framing your minimum this way, you show your clients that you are putting their needs ahead of your own.

 

Step 3: Stick To Your Minimum (Usually)

In most cases, it is imperative to stick with the minimum you set. If you make frequent exceptions by taking on clients who don’t meet your minimum, you will weaken its effectiveness. This is not to say you can never make exceptions. It’s just that if you do, you need to have a good reason for doing so or your clients may perceive your minimum as a mere sales ploy.

One thing you may want to do is select additional client “qualifiers” besides account size. Such factors could include:

  • Short-term revenue
  • Long-term revenue
  • Influencer in the community
  • Ease of management
  • Fit with client base
  • Close friend or family member of a top client
  • Good chemistry

In such cases, feel free to let the individual know that you are going to make an exception to your minimum based on certain factors. If you take off your financial industry hat, it’s easy to see why this strategy makes sense. It’s fairly common for doctors and attorneys to accept smaller cases when they are confident they can help someone, or when the time and effort required is minimal. Shouldn’t financial advisors have the same professional latitude?