Financial advisors with wealth planning capabilities are often also seen as thought leaders and experts in their fields. They can systematically and strategically share solutions with other professionals such as accountants and attorneys, and thus become the leading authority in those webs of relationships. As such, they are more likely to get new ultra-affluent investor clients and close business much faster.
The ability to get current clients to refer other ultra-affluent investors is certainly possible, though it’s not a common occurrence. In fact, it has been empirically shown that the greater the client’s wealth, the less likely he or she will refer family members or peers to an advisor. Although there are various ways of prompting clients to make referrals, a stronger approach is to build strategic alliances with other professionals such as accountants and attorneys.
When financial advisors combine their capabilities in wealth planning with the expertise of those other centers of influence, everyone wins, from the client to the financial advisor to the professionals making the referrals. It allows the advisor to make use of the multiplier effect: The advisor provides high-caliber thought leadership content to other professionals who, in turn, share it with their ultra-affluent clients. When done methodically and consistently, the other professionals tend to generate significant revenues. And then when they have an ultra-wealthy client requiring new investment services, the financial advisor tops the list of choices.
Russ Alan Prince is president of R.A. Prince & Associates.
Richard J. Flynn is managing partner of FFO Business Management & Family Office.