There are a number of trends among the affluent that can have decisive implications for those professionals seeking to work with them.
Trend #1: The rich are getting richer and there are more and more and more of them. The wealth controlled by the affluent is growing at a tremendous rate. The wealthy are financially distancing themselves from the rest of the population more than ever before. There are a number of interrelated reasons for this, including a new technological revolution such as Internet-based businesses and 3D printing.
Thought leaders will dominate, accruing a greater percentage of the corporate, and consequently, personal riches. Whether it’s professional services or luxury marketing or leveraging sales through search engine optimization, the recognized authorities will dominate in our “winner-take-most” environment. There are only going to be a relatively small number of thought leaders, and they’re going to garner the lion’s share of personal wealth.
There are additional reasons for the boom in private wealth creation, but what’s very clear is that the rich are getting richer and the very rich even more so. It’s a trend with no let up in sight.
Trend #2: The affluent are increasingly diverse. Meaningful personal wealth is more and more not concentrated in one demographic segment of the population or another. There’s wealth creation, for example, across a broad spectrum of individuals.
At one time, age was a major determinant in becoming wealthy. While greater wealth is still concentrated in the hands of older individuals, societal shifts are placing considerable monies into the hands of inheritors at an ever-faster pace. Moreover, the technological revolution is many times favoring the high-tech savv—those under 30.
Personal wealth creation is a worldwide phenomenon. Globalization, the Internet, and the free flow of capital are but three factors that have widely opened the doors to individuals across the Earth taking actions that produce personal wealth. A consequence of worldwide personal wealth creation is that the affluent are more than ever transnational.
Trend #3: The affluent are increasingly circumspect of professionals. Generally, the wealthy are concerned that they might be relying on professionals whose know-how and skills are not at the very top of their fields. There’s also the pervasive and dangerous situation where the wealthy are outright deceived.
Criminal fraud is an entrenched and burgeoning industry, and the wealthy are prime targets. They’ve proven to be excellent victims of Ponzi schemes and a panoply of other related illegal activities. At the same time, the expertise of many professionals has been called into question over the last handful of years. Quite a number of professionals have proven to be anything but as the economy took some solid body blows.
Each of these three trends results in opportunities and conundrums for professionals seeking to source and work with the affluent. For example, the growth of the affluent cohort, coupled with their burgeoning wealth, is very positive for professionals as it means there are more of the affluent to serve, and many of them are extraordinarily wealthy. The downside is that this booming cohort is likely to attract a disproportionate number of new professionals who may very well end up competing passionately with you. If nothing else, the influx of new professionals will certainly cause static in the system—distractions for the affluent.