Isn’t it amazing! Clients can easily become great friends, yet it can be difficult for great friends to become clients.
Here are three approaches to consider:
1. Risk to friendship. Now the risk becomes the reason to bring up business. “You know where I work and what I do. I’ve never brought up business because I’ve always assumed you work with someone else already. They probably take great care of you and provide excellent service. Most successful people have that kind of relationship with their advisor.”
They should likely let you keep going. They might say “Actually, I don’t. What can you do for me?” If that’s the case, you know where to take that conversation.
Let’s assume you keep going. “You might know some people who aren’t as lucky as you. (Having a good advisor.) I thought we might spend a few minutes talking about “What I do.” Then, if you come across one of those people, you will know how I might be able to help.”
You talk about what you do in the context of their life situation. They might decide you can help them. If not, they will know how you can help someone in similar circumstances.
2. Treat them with professional respect. You brought up business. They told you they work with a competing firm. From clues they have provided over time, you think they use money managers or a fee based account structure. Treat them with the respect and deference you would show to an institution you were prospecting.
“I know you work with (firm). You’ve explained that. You utilize professional money management. We offer managed accounts too. We have good performance figures. We are competitively priced. When do you review the performance of the managers you are using at (firm)? I’m interested in competing for some of business.”
You see them a week or so before their review meeting. You present what you can do, asking for a reasonable amount. You establish yourself as the alternative. They meet with their advisor. They do a performance review. They offer sell and buy suggestions. Money will be in motion.
It’s easy for your friend to accept the sell, but not the buy suggestions as a way to raise money to send to you. You haven’t gotten the whole relationship, or even a huge one, but you have your foot in the door. The other advisor can’t forbid them to move money. It’s a wakeup call for them.
Your friends are likely in middle management, business owners or professionals. They review service contracts and consider other vendors throughout the year. You are utilizing the same logic.
3. Wearing different hats. This sounds childish. It’s been around forever. It can work for business or your charitable fundraising efforts.
Sit down with a friend. Say “I’m taking off my friend hat and putting on my business hat for the next five minutes. Talk business. When you are done, say: “I’m taking off my business hat and putting my friend hat back on.” If they want to continue the business conversation, they can say “Keep the business hat on awhile longer.”
When you separate the roles, it’s easy to become the investment professional, then revert back to the close friend.
All three of these strategies are soft ways to bring up business without creating tension or putting your friend on edge.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, Captivating the Wealthy Investor, can be found on Amazon.