At first glance, women advisors appear to face a double layer of challenges in establishing a high-net-worth client base. Not only are most referral sources for such clients—accountants, business managers, estate planning attorneys and trust officers—frequently male but so are the clients themselves.
However, beneath the surface, the reality is that women are rapidly rising in the professional ranks, leading companies and establishing small businesses at higher rates than ever before—and, as a result, in decision-making roles as heads of households as their family’s sole or primary source of income. Women advisors are well-positioned to demonstrate their value to this audience.
During my career leading independent advisory and brokerage firms, I have seen many women advisors achieve success with female high-net-worth clients. Here is a sampling of some of the best practices I hear from female advisors:
• Gain an entry point through philanthropic organizations and large companies. One of the best ways to meet with high-net-worth clients is through an organization made up of wealthy women predisposed to making professional connections. Volunteering for and making donations to a philanthropic group is one good example, not only allowing advisors to make a difference in their own communities but opening doors to speak with other successful women who have similar personal values.
Also, many advisors live in areas that are home to corporations that employ a large number of high earners. My hometown of Seattle, for example, has become inextricably linked with the likes of Amazon, Microsoft and Starbucks. While not every city has an Amazon in their backyard, countless communities across the country support prosperous companies that drive significant wealth.
Advisors should seek to establish contacts with female executives—or, even better, promising up-and-comers who are on the fast track to the C-suite level—perhaps through a human resources department or through a local professional networking organization. Advisors who connect early on with younger, hard-driving female professionals will likely be retained by them as they rise and, over the years, receive referrals to work with other women executives.
• Take the notion of a niche practice a step further. Of course, countless practices already customize their offerings to serve high-earning professionals like doctors and lawyers. To find a way to differentiate yourself even further, however, perhaps focus on a more specialized niche, such as “women in transition.” This group encompasses every situation from those retiring from a high-powered career to women who suddenly find themselves single late in life, whether through divorce or death of a spouse.
Of course, no two women are the same, but many facing life-altering changes will know other high-net-worth friends and family experiencing something similar, creating referral opportunities. Meanwhile, focusing on this group often involves developing subject matter expertise (i.e., long-term care and health insurance strategies to complement Medicare, or getting the most out of stock options) that will allow the advisor to market themselves as a thought leader, burnishing their professional credentials in the community even further.
• Provide emotional support. Regardless of how women advisors find high-net-worth clients, they can forge deep bonds with them by serving as a source of emotional support during trying times. Female executives who encounter gender-related hurdles at work may appreciate a sympathetic ear who can share similar experiences from her career, just as successful women struggling with whether to retire might benefit from some perspective on how other clients have made the decision.
This approach can apply to wealthy women of all backgrounds. No matter the specific issue, recognizing when a prospect or client is under strain and responding with genuine empathy and compassion—along with sophisticated and relevant financial solutions—may be an advantage for women advisors.