Business Development

Make the most of your practice. In this section, learn ways to attract high-net-worth clients. Listed below are some ideas advisors have shared with us.

Coffee Clubs – Just ask the advisors who sponsor them. Once a month, they invite all of their clients to coffee and donuts in the private room of a local restaurant. They are there for one hour, from 7:30 a.m. to 8:30 a.m. While the meetings are relatively informal, the advisor will speak on one topic for a few minutes. Generally, that topic is related to an article in the morning newspaper's financial section. While only a small number of clients may attend any one coffee hour, it allows the advisor to further strengthen her relationship with them and it sends a clear message of appreciation for their business.

Fashion Shows – Investors are sick and tired of the same old seminars. That's why attendance is dropping in many areas. One way to perk up your attendance is to combine your seminar with another event ... like a fashion show. Contact a fashionable men’s, women’s or department store and ask it to co-sponsor your seminar by providing a 20-minute fashion show. Generally, you may want to schedule the fashion show after your presentation, introducing it by implying that a sound financial plan can provide the resources to allow investors to purchase the outfits about to be shown. In addition to fashion shows, you might consider a local sports writer or someone from a local professional team as a speaker, a presentation by a beauty salon or, for the tennis and golf set, a presentation by a local pro. You'll not only be adding to the appeal of your seminar, you will be helping the co-sponsor with its marketing ... perhaps even to the point that the organization shares its client list with you and you share yours with it.

Local Celebrities – Introducing yourself to local “celebrities” works. Every week, local newspapers run articles about people who have been promoted, taken new jobs, received awards, etc. Aside from that coverage, there is little recognition for these people. Imagine their feelings, then, when they receive a letter – from someone they don't even know – congratulating them. One advisor at another firm tries to personalize these letters by including a paragraph about a service he offers that would apply to that person. He reports opening accounts with one out of six people he contacts that way.

Tapping into Women's Groups – Tapping into women’s groups works. With women controlling more and more purchasing and investment dollars, it is critical that we target that market. One way to gain trust and confidence among women is to offer women’s organizations in your area educational seminars. Because many women feel they do not have enough information to invest intelligently, there is a serious need for educational seminars. Women’s business groups, hospital auxiliaries, civic organizations, etc., are all candidates for these seminars ... and many of them are planning their future programs. One of the best ways to get invited is to work through existing women clients. Ask them what organizations they belong to and if they could refer you – and recommend you – to the program chairman.

Can you afford not to know the return on your marketing campaigns? Knowing where your business is coming from is important at any time, but more so when the markets are down and dollars are tight. Unfortunately, few advisors take the time to track the total costs and returns of their marketing campaigns. As a result, they often overlook repeating successful campaigns and continue those that are not really productive. It does not matter what the campaign is – seminars, newspaper ads, TV commercials, client appreciation events, direct mailings – each can be tracked for returns. Of course, when considering these returns you also have to factor in the market, as major swings can influence investor attitudes toward your marketing efforts.

Be thorough in tracking campaigns. On the expense side, include all costs, such as the time investment by you and your staff. Once the project is completed, add these together. That number becomes your objective for net commission returns. Next, keep good records of how many leads you receive, how many prospects make appointments with you and how many of those become clients. Of the client group, analyze your immediate net commissions and the potential net commissions from the account during the coming year. In an ideal marketing campaign, these should offset your costs.

However, there may be some leads that develop into clients later. Therefore, you should track each lead as you continue to contact him or her in the future. You should also track referrals from those who become clients, as the net they generate to you can generally be attributed back to the initial campaign. With this information, you should eventually find it easier to make future marketing decisions for your practice.