The wealthy constitute one of the most lucrative markets for a broad array of professionals. They are exceptional clients for financial advisors, insurance agents, lawyers, business coaches, bankers and accountants.
While the rich are getting richer and increasing in number, the number of professionals seeking to do business with them is growing at an even faster rate. Presuming the experts are indeed experts in their areas of specialization, significant financial success tends to be dependent upon the ability to source high-net-worth clients.
There are many approaches to sourcing the wealthy, with a large percentage of them not all that effective. While most anything can work to some degree, certain approaches have been proven to be extremely viable.
The integration of the following three strategic components has been shown to be exceedingly effective in building a successful high-net-worth practice:
Thought leadership: Being good is not good enough when it comes to being extremely successful in generating new business. It is necessary for you to become the go-to expert for select services. Becoming a thought leader requires developing or curating content that is meaningful to the intended audiences. It is also critical to effectively distribute the high-quality thought leadership content and follow up on your contacts.
Sourcing clients from other professionals: The most effective way to get a steady stream of high-net-worth clients is to develop strategic partners who are non-competing professionals. Strategic partners have “ideal” clients and are actively looking to send them to you. Moreover, when the strategic partnership is well structured, the other professionals are recommending only you and consistently act as your advocates.
Maximizing wealthy client relationships: Using processes like the Whole Client Model, you are able to develop an understanding and powerful insights into your affluent clients. These perspectives can with great regularity enable you to identify ways to provide value as well as provide additional profitable services and products. The methodology also results in high-quality referrals.
While a professional can build a high-net-worth practice in many different ways, the greatest success with the wealthy—including super-rich people worth $500 million or more—is due to sharing industry best practices with clients, prospects, other professionals and the ultra-wealthy, and developing relationships with other high-quality professionals. Being intensely client centered helps to deliver the very best solutions to meet clients' needs and to develop strategic partnerships.
High-net-worth practices can be extremely profitable for professionals. By integrating thought leadership and strategic partnerships into your practice, and maximizing client value, most professionals can carve out a financially rewarding niche composed of wealthy clients.
Russ Alan Prince, president of R.A. Prince & Associates, is a consultant to family offices, the ultra-wealthy and select professionals.