25 May What the Rich Want: Get and Keep HNW Clients:
The key to attracting high-net-worth clients is making them understand you are an expert on understanding and solving their issues by communicating to them in a consistent and educational way. Years ago, it was possible to sign clients with one meeting. Today, due to market volatility and a general decrease in trust, a prospective client needs to hear about you, visit your website and be convinced that you are the right advisor for them over a period of time. Based on industry research and interviews I have done with HNW investors and the advisors that serve them, the top 4 issues that HNW investors face are:
- Taking care of the family. HNW investors want to make sure their family is taken care of, including children, parents, in-laws and their spouse. This means more than just making sure their estate plan is up to date. It also means creating a relationship with their heirs and preparing them for the responsibility and challenges associated with inheriting wealth.
- Preserving and protecting wealth. Most affluent investors I have spoken to are much more concerned with preserving the wealth they have than they are with creating more of it. The idea here is to write about ways that you will manage their risk and protect their wealth to give them peace of mind.
- Tax mitigation. According to the study, “Cultivating Middle Class Millionaires,” mitigating income taxes is a concern for more than 90% of people with between $1-$3 million in net worth and is a concern for 75% of the respondents with between $3 and 10 million. For those in the higher-net-worth range, estate and capital gains taxes are also a major concern that you should address in your communications.
- Need for a true partner. For HNW investors, time is the most precious asset. They are looking for you to become a true partner in helping them reach their goals by giving them time they would otherwise have to spend worrying about protecting their wealth.
Design your communications to address these areas and you will be well positioned to attract and retain HNW clients.