The Art of Attraction

Approaching another advisor's client is just not done.

Actually, it is — and with good reason. The prospect's advisor may not be providing good service. The advisor may be addressing only a portion of the prospect's needs because he's pigeonholed as "my insurance guy." The advisor may not be comfortable with other products or investments offered by his firm, so he never brings them up. The advisor may have never suggested a financial plan to his client.

"But they are happy with their advisor," you say. "They've told me they see no reason to change. How can I win them over?"

You can have more than one financial advisory relationship. In the book ""The Millionaire's Advisor,"" authors Russ Alan Prince and Brett Van Bortel point out that the wealthy have several advisors. They explain that the client worth $1 million to $5 million has about 2.9 advisors. The client worth $5 million to $10 million works with 3.4 advisors on average. Cross the $10 million line, and it's 5.7 advisors.

So, how do we get the prospect comfortable with a multiple-advisor relationship? Let's look at a step-by-step approach to attract high-net-worth clients.

10 steps of attraction

1. Know them, and get them to know you. Be selective about the clients you're approaching. If you are building an exclusive clientele of high-net-worth relationships, you want 150 or 250 or 500 of the right relationships. If you could choose them, who would they be? Do discreet, extensive, ongoing research.
    
2. Be exclusive. People often want what they can't have. It's the rationale for private clubs and collecting impressionist works of art and other items that confer status. Exclusivity sells. Advisors who come across as pushy or desperate for business usually don't get it. It looks like they would take anyone on as a client. Success is the opposite of desperation. If you explain what you do and aren't pushy about business, people assume you are successful. Successful people like to do business with other successful people.
    
3. Be discreet. In relationships, discretion is important. In your business, it's called confidentiality. You socialize with the same people. Although it's within their rights to mention you are their advisor, you don't discuss client relationships. People want to know their secrets are safe with you.
    
4. Make them feel important by listening. Has your prospect been taken for granted by their current advisor? Are they an important client? How do they know? It's logical their advisor has been asking for referrals. Turn this to your advantage: "Is your advisor more interested in who you know than knowing you?"
    
5. Establish a rationale for the relationship. Trust and fidelity are the foundation of successful relationships. In business, your prospect might feel like working with you is cheating on their current advisor. Your rationale comes from the book "The Millionaire's Advisor," discussed earlier. High-net-worth individuals have an average of three or more financial advisors. When the prospect explains, "I work with someone already," you might respond: ""Successful people usually have multiple advisors. You are obviously successful. How many do you have?"" Open the door.
    
6. Find out what's missing. Neglect destroys personal relationships. What's the business equivalent? Does their advisor understand why they invest? It's not just about performance or beating an average, it's about goals and dreams. Does their advisor understand? You do. Listen.
    
7. Establish yourself as the alternative. Respect the relationship they have with their existing advisor. They have been with them for a long time. "You are probably very happy with your current advisor. If anything ever changes, please give me a call."
    
8. Be in front of them. Visibility is key. Attend the same social events. Remember previous conversations and details important to them. Ask about their children, vacations, parents' health. Show a sincere interest. As an advisor, your objective is to be the first name that comes to mind when they think of a good financial advisor — the one they would recommend to friends.
    
9. Make it easy. The prospect needs to commit. They may not be ready to move everything, but take small steps to get them writing checks. "It's been a volatile time in the market. Have you ever seen a consolidated view of all your accounts on one report? It shows how everything fits together. I would be glad to put one together and review your holdings, if you'd like. It's good to bring in a fresh set of eyes. It's easier to do this kind of analysis going forward when there's an account on the books. I suggest we establish a small account to get started…"
    
10. Make it difficult to go back. The object is to paint the picture of how great it is to work with you. Your approach is professional; however, the goal is to eventually bring all the business over. Provide excellent service. Be attentive. Start making the case to consolidate assets with the account you have already established. It would probably be easier on their accountant to work with one report. "Do they charge you for the time they spend working with different statements from different firms? Your other broker probably wouldn't understand. After all, have they ever suggested this before?" Deliver the message: You are an important client to me.