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by Matt Oechsli
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Costa Mesa: "My income has taken a hit and
I just don't feel I can afford to put on some of these intimate
rainmaking events you described," said Mike during a break in one of my
practice management workshops.
Every advisor with a fee-based business has felt the sting of
this financial crisis. It's okay to identify with the first half of
Mike's statement, but the rest of what he's attempting to articulate is,
well, complete rubbish.
Contrary to conventional wisdom, now is arguably the best time to
invest in serious, well-crafted high-impact rainmaking activities. Due
to the transitional state of the economy and the fluid nature of
people's finances, the amount of money in motion is unprecedented.
Unfortunately, too many advisors are either thinking like Mike or simply
don't know what to do. Therefore, by default, big pools of assets are
being parked at the large custodians.
Rainmaking is a mindset. Period! Make no mistake about it. And
people with money are desperate for advice and guidance; our research
continues to tell us that they aren't happy with the kind of service
they're getting. The two most important criteria for today's affluent in
selecting a financial professional are:
- Reputation
- First impression of professionalism and competence
Mike, like too many advisors, was simply throwing in the towel. Yet we
have witnessed many examples of advisors who make "summer rain on the
cheap." The importance of this cannot be overstated. Why? Because
affluent prospects must be introduced to you, get to know you and
determine whether they like you before they will hire you. This
introduction and interaction can then serve as a platform upon which you
can win the trust of your affluent client (referral alliance partner,
COI, etc). This in turn creates a window of opportunity within which
your mission is to earn the prospect's respect on a professional level.
Just last week, Kevin, one of our outstanding performance
coaches, was sharing a case in which one of his coaching clients held a
wine-tasting event that landed her two new affluent prospects. The
advisor's total investment was less than $120. Being a wine lover
myself, I wanted the details.
The event was held at the advisor's house on the back deck. As
for the food, the advisor prepared it all herself and matched it to the
wine. There was no sit-down dinner, but well-prepared finger food did
the trick as the wine was the focus. As for the wine, the FA had a
friend in the wine business and was able to get a selection of good,
interesting and inexpensive wines from South America at cost.
You can do the math. If Kevin's coaching client lands one of
these two prospects, both with at least $1 million in assets (ever the
optimist, she thinks both are coming onboard) at 1 percent, that's
$10,000 gross, which at her 45 percent payout sends $4500 to her bottom
line. Once you deduct the $120 for the wine event, $4380 has been
netted. And that's not even taking into consideration the $4500 that
will recur annually.
However, making "summer rain on the cheap" requires both
creativity and courage. Not many advisors invite affluent clients and
prospects to inexpensive events at their homes. Yet, planned and
executed properly, these events can be very successful. As a result of
the financial crisis, many societal norms have shifted; among them has
been a move toward thriftiness and away from extravagance.
I am going to list a handful of inexpensive intimate client
events that our rainmaker coaching clients have used, with great success
I might add:
Inexpensive Intimate Events (<$150)
- A Women-Only Informational Tea Party. Widow clients and friends,
female clients and friends, spouses of clients and friends.
- Backyard BBQ. Two clients with families, two friends of clients with
their families, and CPA with family.
- Local Theater Events. Three couples, client, prospect and a
center-of-influence, with coffee and dessert following the show.
- Outdoor Concerts. Advisor brought box lunch and beverages. Group
consisted of three clients, two prospects, and a CPA.
- Fly-Fishing Classes. Back room of a high-end outdoor sporting goods
store, advisor provided pizza and beer. Group consisted of four clients
and six prospects.
- Gardening Classes. Local nursery, no food or beverages, group
consisted of five clients and three prospects.
- Pontoon Boat Outings. Picnic lunch, wine and beer, two clients and
two prospects.
- Local Art Gallery Tour. Advisor provided wine and snacks, seven
clients and four prospects
With the proper mindset, Mike, like every other financial advisor, could
afford to hold an event similar to those I've listed above. But they
require creativity and a solid dose of courage. That's work. Here are
some simple guidelines to follow that should help:
1. Identify clients with whom you want to schmooze.
2. Select the appropriate event, something both you and your clients
will enjoy.
3. Source a name from each client's center-of-influence.
4. Organize the event logistics; tickets, location, food, etc.
5. If possible, have two tentative dates.
6. Personally contact each client and enthusiastically invite them and a
friend to this FUN event.
7. Follow-up within a week to get a head count.
Granted, none of this seems complicated, and it's not. Yet it does
require you to know your clients, take a small leap of faith, make a
personal commitment, and have an active rainmaking antenna.
Mike may not have been ready for a performance driven coach like
Kevin. However, if you would like to determine whether you're prepared
to take your business to a new level and make some "summer rain" take a
FREE Coaching
Readiness Assessment. You don't want to waste your time and
money if you're not ready.
Once again, we want to thank all of you who have emailed comments and
questions to us. We will continue to do our best to answer each one.
If you have any topic suggestions or special requests, please contact
Rich Santos, publisher of Registered Rep. and Trust &
Estates magazines, at rich.santos@penton.com.
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