HNW MINGLING 101

Every firm wants its financial advisors to build a highnet-worth (HNW) clientele — and with cold calling almost legislated out of existence, the best way to get in front of wealthy people and ask them to become clients is to become part of their world. How do you do it?

Start by believing new money wants to become old money. Once people become financially comfortable, many get involved in the community and local charities as donors and board members. Because people who give away money like to know how it’s being spent, they attend events and are active with the organizations they support.

This is your opportunity to mingle with the wealthy at a nominal cost. Join the right organizations, show up on a regular basis, make an effort to meet people, and you should become a familiar face, accepted into their social circles. In British terms, you become “clubbable.”

What’s your strategy? Numbers! If you attend one monthly meeting or event organized by four organizations and meet six new people at each one, over 12 months you’ll meet 288 people. Even if one-third aren’t wealthy and another one-third are but don’t connect with you, this leaves the final one-third almost 100 people — who are both wealthy and share interests with you.

Pick Your Four Organizations

To maximize your chances of meeting people with the potential to become clients, choose organizations with wealthy members, monthly meetings, name recognition, and an uncontroversial cause. Here are some ideas.

1. CHAMBERS OF COMMERCE.

The secret to Chamber membership is involvement. Consider it like a dartboard with concentric circles, getting smaller toward the centre. That is where you find the biggest boosters of the local economy. TIP: Metro markets often have several chambers, and don’t neglect cultural chambers if you share the same background.

2. MUSEUMS AND CULTURAL INSTITUTIONS.

These organizations do so much work for you — finding the wealthy, signing them up as members, converting them into donors, and putting a couple of hundred of them into a room once a month — and membership gets you entry into the members-only viewing before a new exhibit opens to the public. TIP: Smaller museums and historical societies have their share of deep-pocketed donors, too.

3. COLLEGES AND UNIVERSITIES.

Educational institutions have plenty of activities that bring alumni back on campus, and if you attended you have a valid connection with fellow graduates regardless of age and income levels. TIP: Your prestigious high school and/ or graduate degree gives you legitimate access to that school as well.

4. SOCIAL SERVICE CHARITIES.

The wealthy have historically invested in the community to improve the lives of the less fortunate. Your local charities almost certainly have wealthy donors. TIP: Don’t let groups like animal welfare societies, zoos, and parks escape your notice.

5. PRIVATE CLUBS.

Country, city, and golf clubs have plenty of social events. The more exclusive the club, the higher the barriers to entry. However, social memberships may be available for people seeking to drink and dine, but not play golf. TIP: There should be several in your area, and some are easier to join than others.

In addition, consider other local groups likely to attract the HNW segment of the market. These may include neighbourhood associations, medical charities, homeowner’s associations, and special interest clubs.

Make The Most Of Every Event

Socializing is fun, but keep telling yourself that drinking good scotch, sampling tasty canapés, and admiring expensive cars also has a work component. Your object is to raise your visibility, meet plenty of people, identify shared interests, and utilize those interests as the rationale for getting to know them better. Leave your killer attitude at home, but dress well and pack your business cards.

People will ask what you do. It’s an icebreaker question along with “Where do you live?” Do not give your elevator speech. “I’m a financial advisor” often puts people on their guard. Shift the conversation over to them. Take a sincere interest in what they do. Try to get the conversation redirected toward personal interests.

When you make a connection, circle back before the end of the evening. The coat check is ideal during those long Canadian winters. The parking valet station usually has a line, too. Let them know you enjoyed speaking with them. Mention a shared interest and let them know you’d like to keep in touch: “How can I do that?” Have your business card ready. I like writing my first name (and my wife’s) on the back of the card along with the shared interest and our home phone number. Presented handwritten side forward, it communicates this is a personal connection, yet the printed side of your business card conveys your credentials.

You’ve taken the first step toward making a new friend. You know how to cultivate the social relationship from there. You will know when (or if) the time is right to bring up business. People prefer doing business with people they like.