At the educational events, Ghabour and his teammates explain an aspect of the market or delve into a financial problem. Social events are purely social. Twice a year the firm holds events explaining “the good, the bad and the ugly about the markets,” Ghabour said. “That is one of our most successful events. Most of the people who attend ask for follow-up appointments. We have the luxury of doing those types of events because we are a high-end boutique firm.” The typical client has $1 million in investable assets.
The firm also holds “topic events,” such as a gathering where the impact of an inverted yield curve is explained.
“Once you have clients on board, you have to deliver for them,” he added.
While developing the firm’s referral process, Ghabour said he and others at Key Advisors talked to successful advisors to see what worked. “Most successful firms are willing to share their techniques,” he said.
Advisors at Walsh & Nicholson Financial Group in Wayne, Pa., near Philadelphia, never ask for referrals. Nevertheless, 98% of the firm’s clients started as referrals, according to Brian Walsh, co-founder and principal. The firm, which has almost $1 billion in AUM and 1,500 clients, has developed a niche service for doctors.
“We focus on the relationships of our existing clients. We keep in touch frequently. When clients feel comfortable with the firm and the advisors, they feel good referring us to their friends and family,” Walsh said. “Getting referrals is a two-way street. You have to have a great working relationship with your existing clients.”
Walsh said he works through centers of influence such as medical schools, realtors and CPAs. The firm’s clients know the type of people the advisors like to work with and make appropriate connections, Walsh said. The firm has no minimum asset level, but most clients have $700,000 or $800,000 in investable assets.
“When someone makes a referral, we have that person sit in on the first meeting with the prospect,” Walsh said. “That kind of sets the framework for the relationship.”
At an industry level, advisors are learning to establish true relationships and do real financial planning,” Walsh said. “When people know that you care about them, they will reciprocate. This is a great time to get into this business.”