I was doing a session with financial advisors in Cape Town yesterday, and realised that many younger advisors are either scared to enter or don't know how to enter High Net-worth or Business Markets. Now, you don't have to enter these markets to be successful if you have a great source or are doing extremely well in your current lower or middle markets, but for most this is the NEXT STEP and to be in the top 10%, you need to get into better markets where pennies don't make such a big difference.
If you would like to build a clientele within the high-net-worth circles in your community, the world where everyone seems to know each other and no one obsesses about prices and fees, there’s one problem. They are inside the circle and you are outside. How do you change that?
Wealthy and successful business owners, professionals and senior executives seem to live in their own private, insulated world. They drive into gated communities. They relax at country clubs.
That’s more fantasy than reality. It implies they never eat out, attend religious services or buy milk. Most are actually quite involved in the community. When you get to a certain social level, there’s a motivation to be a central figure in the community and give back. If they are giving back to the community, by definition, they are involved in the community.
How to network, the HNW way
To meet, mingle and migrate into high-net-worth circles, you must become part of that world. First, you need to identify community organizations likely to draw HNW individuals. Many organisations in town offer the opportunity for you to give back. If your objectives are to give back and mingle with HNW individuals, your ideal organizations need to:
- Attract HNW individuals. That’s obvious. If you want to meet them, they need to be there.
- Provide opportunities to meet them. The ideal group puts 200-plus people into a room at least once a month. If they hold one meeting a year, that’s not enough.
- Are highly visible. The organization should have name recognition. If you have to constantly explain to people what the organization does, that’s not the organization you want.
- Leave a positive impression. Avoid controversy. You might join an organization because of strong personal beliefs. Once you raise your visibility, you will offend large segments of the local population who share the opposite opinion.
You’ve probably already spotted at least three potential flaws in this strategy — but they’re not really problems. Here’s why:
Are you being predatory? Joining something just to get close to people and get business? You are giving back to the community where you live and earn your living. If you join an organization just to get business, those HNW individuals will be able to smell it. You won’t get to first base.
You’re not an expert on the subject. Won’t they spot that? This isn’t a problem. Passion is useful, but it’s not a requirement. As long as you have a sincere interest in learning and contributing, you will blend in. This interest in learning can be an unexpected benefit. True enthusiasts enjoy sharing their knowledge with newcomers.
Isn’t this expensive? This strategy can be surprisingly inexpensive to implement! Plus, it makes sense to invest in your own business.
You have to be bold and all it takes is a decision to do it! Then go out, study some HNW individuals, see where they hang out, and find a way to get into the GOLDEN CIRCLE.