Every day I get invited to hear someone speak on how to get more High Net Worth clients. Stop going after something you might not want. Instead, go after ideal clients
. Your ideal clients, not someone else’s definition.
What is your definition of ideal clients?
According to USA FPA Research and Practice Institute study - Future of Practice Management -December 2013], 75 percent of financial advisors don’t have ideal client definition clearly laid out for their practice or their team. Think in terms of revenue per ideal client, family or household, for the value you deliver. Write down the ideal revenue you want o generate in year one, and recurring revenue.
Year 1 revenue per ideal client $________________
Recurring revenue per ideal client $_________________
Criteria for high net worth clients
We have all been to courses and workshops pouring over research on HNW clients and how to target market. It is great stuff. How much of it have you implemented? Usually very little since we all want more ideal clients, but go back to old habits. It's human nature to go back to our comfort zone. So how do you change it? Start by asking yourself a few questions. Are your top 25 clients ideal? Do they trust you with all of their information in all seven areas of their financial life? Tax estate investments risk insurance debt and cash flow. If they own a business or are incorporated their business information as well? Do you coordinate their team of professionals including acct lawyer or notary realtor mortgage insurance and others? Do they follow your comprehensive planning advice and plans to reach all of their goals clearly mapped out? In other words, do they delegate everything to you to take care of? Are they delegators? Or do they only want to talk about investments?
Ideal clients want more than just a relationship
In the past financial advisors focused on relationships. While relationships are critically important, imagine if advisors in countries such as Australia and UK built their business income which is all fee-based , solely on relationships. The ideal clients want to delegate because it gives them more time. Time to do the things they want, not trying to save a buck on investment fee or tax planning. That is why they delegate to you, the coordinator of all their financial life in all 7 areas.
Are all your ideal clients and prospects financial delegators?
Aha, this is the test of your practice. If all of your clients delegated everything to you, wouldn’t this make for an ideal client? What us the ideal revenue you want to earn for the services you deliver? Write down the ideal revenue to you on an annual basis. Now if you want to earn more per ideal client, deliver more value. The more value you deliver the more valuable you become. Make sure it is a win-win, the client is happy with the service and fees and you are happy with the service and fees.
Stop chasing HNW prospects
Instead of looking for HNW prospects, look for ideal clients. Clients that delegate everything to you. This may be HNW people, but add the word HNW delegator to your ideal client criteria. Focus on these type of clients as they give you the most joy in the business because this is where you do your best work. Now go and acquire a business of ideal clients and see how much value you can deliver and how much you will enjoy what you do.
Related: How to Become a Three Dimensional Financial Advisor