As was said years ago in the financial services industry, "We are all things to some people." Here are some thoughts on how you can make this happen. (Photo: Shutterstock)
Newbie agents and advisors need clients fast, so they are willing to be all things to all people. Experienced advisors have often established niches: They've moved their practice upmarket. They've figured out the client segment where they can add the most value. Word spreads through the segment, creating a virtuous circle. These agents and advisors can take the long view. Because they take ownership of their practice, they are willing to spend some of their own money to cultivate business.
As was said years ago in the financial services industry, "We are all things to some people." How can you make this happen?
|Approach #1 – Offering a free service to prospect for other businesses
Once upon a time, there was a guy returning from military service. He became a financial planner. During his career, he determined there was tremendous opportunity if he took his business in a new direction. He decided to prospect municipal school districts in his state for their benefit plan business. He knew they reviewed their providers periodically. He knew it was announced beforehand, yet getting this information in a timely way was challenging for an outsider.
He decided to approach school districts with a novel proposal. He would do comprehensive financial planning for the senior administrators at no dollar cost. They would be able to take their completed plan in hand, executing the recommendations wherever they chose.
What did he want in return? To be notified when the school district was seeking proposals for its benefits plan review process. He wanted the opportunity to compete. It's my understanding he handled the benefit plans for about 25% of the school districts in his state at the time he sold his business.
Why did this strategy work?
He was providing a service of value to the senior administrators. After climbing the ladder, many were approaching retirement age. In this market niche, he knew how their retirement plans worked. He was asking for something that was public information, although interested parties would need to know where to find it. It's logical to assume one satisfied school district told another, enhancing his reputation.
Providing financial planning without attempting to sell product meant he was leaving business on the table. This enhanced his credibility. People would always have the option of asking him to help them implement the plan. That would be their choice, something they would initiate.
|Approach #2 – How golf can integrate into your prospecting strategy
While doing research for the client acquisition training I developed, I interviewed a bank president. It was a local bank with a few dozen branches across two counties. As part of the bank's transition from lending into broader financial services, the bank bought an insurance brokerage agency.
The bank president told an interesting story. The owner of the agency was given advice when he moved into a new town. "Buy a new Cadillac. Join the most exclusive country club."
The guy balked at the expense. He was told: "This business is built on perception. If you drive up to the most exclusive golf club in a new Cadillac, people assume you are a successful insurance broker." He found the money and followed the advice.
His strategy was to play golf several times a week, in good weather. On each occasion, he would invite his CPA to play along with two of their own clients or he would invite three fellow Chamber members. The only requirement was the guests needed to own small or medium-sized businesses.
They would play a round in the morning. The agency owner would take them to lunch in the clubhouse afterwards. Over lunch, he would ask the guests: "Can I call you next week and set up an appointment? I have some ideas I would like to share. I think I may be able to save you some money." They would agree. He would usually get the appointments.
Why did his strategy work? Why did he specifically target small and medium-sized business owners? They belonged to golf clubs too, but not the best club. They only get to play the best course when someone else invites them as a guest. Playing the course plus having lunch afterwards places them under such an obligation, it's difficult to say; "No, you can't have an appointment. I won't meet with you."
|Approach #3 – The client's retirement party
A financial planning firm structured itself like a law firm with senior, associate and para-planners on staff. Their niche was senior executives in the pharmaceutical industry. They developed a novel approach to get introduced to the peers of their best clients.
When a client approached retirement, they would offer to host a retirement party. It might be 10 people at a restaurant or 20 people for a catered affair at the client's home. The planner covered all the expenses. Their only request was to be invited to the celebration.
The executive would invite fellow C-suite senior managers. They would say "Thanks for inviting me to your party." The executive would explain the financial planner was throwing the party and likely mention how the planner was instrumental in preparing them for retirement.
These fellow senior executives realized they could use the same type of help. During the party, the planner and their team met everyone and thanked them for attending. Connections were made.
|What are the common factors?
In all three examples, the agent or advisor is filling the prospecting pipeline. They are getting on someone's radar. They are in front of people who fit within their niche, pre-qualifying them as prospects. They are taking the long view because people may not be ready to do business right now. They are investing their own money in their practice.
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.
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Bryce Sanders
Bryce Sanders, president of Perceptive Business Solutions Inc., has provided training for the financial services industry on high-net-worth client acquisition since 2001. He trains financial professionals on how to identify prospects within the wealthiest 2%-5% of their market, where to meet and socialize with them, how to talk with wealthy people and develop personal relationships, and how to transform wealthy friends into clients. Bryce spent 14 years with a major financial services firm as a successful financial advisor, two years as a district sales manager and four years as a home office manager. He developed personal relationships within the HNW community through his past involvement as a Trustee of the James A. Michener Art Museum, Board of Associates for the Bucks County Chapter of the Fox Chase Cancer Center, Board of Trustees for Stevens Institute of Technology and as a church lector. Bryce has been published in American City Business Journals, Barrons, InsuranceNewsNet, BenefitsPro, The Register, MDRT Round the Table, MDRT Blog, accountingweb.com, Advisorpedia and Horsesmouth.com. In Canada, his articles have appeared in Wealth Professional. He is the author of the book “Captivating the Wealthy Investor.”
