Reaching high-net-worth individuals can be a daunting challenge for some advisors. One strategy trending right now is charity involvement
. (And yes, it needs to be because you actually are passionate about the charity. It's not just a strategy to sell your products and services.)
But we know many advisors who have developed profitable relationships with like-minded individuals who are big supporters of charities. One advisor manages over $1 billion in assets from the relationships he built through his active participation in three charities.
In order to attract high-net-worth people
, the first challenge is to simply get in front of them so they know you exist. Sending out a direct mail letter to a cold list of high-net-worth individuals may — or more likely, may not — have some success. But if you offer to serve on the oft-ignored development committee of a non-profit in your community, you will immediately become something of a rock star.
Even more important, you will now be asked to build relationships with major donors to ask for their help. You are suddenly introduced and elevated to a totally different position with these particular high-net-worth individuals.
Non-profits need help more than ever. It is a great time to get involved. It offers you the opportunity to meet with others who care about the non-profit and are willing to donate money, and it gives you the opportunity to forge your own relationship with them. Ask them to go to lunch
or meet in their office. Ask for their help and advice beyond the dollars they may donate to the charity. Eventually they will ask about where you work, and you will find yourself talking to someone that already likes and trusts you. You will be in the perfect position to talk about what you do. It's truly a win-win.
Do you really want to work the high-net-worth market?
7 ways to find the best high-net-worth prospects
Charitable giving for high-net-worth families, Pt. 1
| Pt. 2