“My clients have lots of money they don’t need to learn about it.”

This generalization from the financial industry is part of the reason why many multi-millionaire clients end up falling for the biggest financial scams. It is also why so many financial professionals are always in search of the ultra-high net worth client because those clients really are looking for more than the latest ‘fad’ investment, or this year’s tax write-off.

Admittedly, it is a bit of a conundrum on how to approach wealthy people about increasing their financial knowledge because suggesting to someone with obvious wealth that they might like to learn about money can be easily misinterpreted.  However, let’s consider some of the issues that wealthy people face that most ‘poor folk’ don’t have to deal with:

• They have worked hard to earn their money or have strong emotional connections because it was inherited, which doesn’t automatically mean they know how to keep it or how to invest it; rather it’s more likely that…
• They depend on someone else entirely to manage their financial affairs and make decisions for them. This means that…
• They are frequently targeted by unscrupulous, or even well-intentioned, but inexperienced financial professionals. This also means that…
• They can easily become prey for many fraudulent or inappropriate investment schemes, especially if those investments come with the ever enticing promises of tax breaks and security.
• They are easy to find because many of these people will often appear in business listings or media, or their profession or address in the ‘nice neighborhood’ of town is also a clue that there is a high probability of wealth so they will be targeted. This means there is a constant stream of seemingly good investments, financial schemes and advisors offering their wares.
• They will make ad-hoc decisions because they have access to the opportunities and money to put towards them. Many of these opportunities will be unregulated. However, when the wealthy investor becomes comfortable with these creative investments…
• They will miss the rewards of solid mainstream financial planning.
• They are busy and will often lack a solid foundation based on personal values, goals and priorities in which to evaluate the investments and strategies for their own situation, which brings us full-circle in that…
• The multi-millionaire client is dependent on professional advice and service not necessarily well-equipped to evaluate complicated financial options so…
• They can actually become more fearful of loss or of making a wrong decision. And because there is a perception that the wealthy have money, and therefore must know a lot about the financial plans, strategies and investments they have…
• They can find it even more intimidating, and can be very private, when discussing money matters…
• They are certainly cautious to admit they need training to help them make money decisions.

…Which is how we find that the generalization that wealthy people don’t want, or don’t realize they need to, learn is actually creating a barrier between the financial professionals and the clients who need their services.

What all people want and need, regardless of the number of zeros on their bank statement is to look beyond the money to what’s truly important to them in their life.  They want to feel in control of their finances without having to become the expert. Everyone needs to feel financially secure, and a large bank balance doesn’t guarantee security.  It comes with more responsibility and more potential for a hard fall.

And, all this is why one of the biggest lessons on wealth I have learned in my almost 20 years as a financial professional was from the billionaires who hired me to teach them how to manage their household budget and pass this life skill on to their children.

This article can be reprinted freely online as long as the entire article and this resource box are included.

Money expert Tracy Piercy, CFP is the founder and CEO of MoneyMinding Inc., a wealth building system that reframes the way people think about financial success using a day-to-day educational experience, which benefits both the financial industry and consumers.

To learn more and receive the free Fast Action Tips & Solutions, visit www.MoneyMinding.com

Copyright © 2000-2009 Tracy Piercy, CFP
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As we enter into uncertain market conditions, there is a tendency for many business professionals to deviate on their set pricing and fees out of fear of losing out on new clients.

Ultimately it’s your business and you live by the rules you set. However, allow me to outline my case for maintaining consistency.

First of all, during turbulent economic times, it is far easier to stand out from the pack. Prospective clients spend more time contrasting potential new service providers and you can use this reality as an opportunity to differentiate yourself from others.

Chances are, your competitors will amplify there salesmanship and in the process project a high degree of neediness and desperation to prospective clients. A more professional consultative approach where you focus more on mutual fit rather than simply making a sale is far more attractive, especially to high caliber potential clients. Keep in mind, top business professionals don’t chase new clients, they attract them.

When a prospective client realizes that you are more fixated on the lifetime value of a relationship than on an immediate commission, you project scarcity and disarm him to the point that they are far more predisposed. This not only positions you as a superior alternative, it enables you to respond to the inevitable:

“I’ve met with 2 of your competitors and they have both offered to lower their fees.”

At this critical moment of truth, you have to convey your rules of engagement with an understated calm:

“You know, I hear where you’re coming from. Especially in these market conditions we all want to be shrewd in terms of how we invest our money. However, you need to know that I never negotiate my value. You see, someone who is prepared to lower their fees is simply trying to make a sale. That isn’t my approach. I focus on long term relationships based on trust and I think if price is what’s really important here you run the risk of overlooking what is utterly important in this type of relationship over the long haul. So I’m probably not the provider for you because I never negotiate my value.”
A really important question to consider is this. Do you really want to do business with someone who is completely focused on getting something cheap? The relationship is going to last long after you’ve spent the money you’ll earn on the deal. And how you start a relationship ultimately impacts how it will unfold over the long haul.

I’ll close with a simple story to illustrate the point of understanding one’s value. A wealthy homeowner contacted a plumber complaining about some pipes that were rattling in his majestic yet aging mansion. The plumber walked in, quickly surveyed an array of pipes, calmly took out a hammer and tapped in one specific area of the pipe network. Sure enough, the rattling stopped. The plumber then pulled out his invoice book and wrote out a receipt for $500. When the homeowner objected and demanded an explanation for what appeared to be a simplistic task, the plumber methodically wrote these words: $20 for hitting pipes. $480 for knowing where to hit.

Advisors and agents have tried for years to develop successful prospect generating strategies. Some strategies have worked and others have produced disappointing results. Today, it seems everything we’ve known is changing as it relates to marketing. And that’s good news for those who want to grow their business!

Amidst all of the uncertainty in the market and the financial industry, the marketing of financial services is having seemingly unusual results. Strategies that may have had limited success in the past are now generating significantly more interested prospects and producing more new clients. Really! But how and why is this happening?

The economy and the stock market are the number one story almost every day in the news. There is an elevated sense of urgency and a need for answers and advice and investors who may have thought they had their financial situation under control are realizing they need help. Today people are seeking out a trustworthy, intelligent, calming voice in all of this uncertainty that will provide an individual approach, analysis and solutions to their financial situation. There has perhaps never been a time when advisors and agents have been needed more. In the past, advisors and agents may have had to “sell” services to get someone to do business. Today people are looking for you!

Red Zone Marketing has been conducting an ongoing survey this year asking financial advisors who manage assets between $250 million and over $1 billion what they are saying to clients and what activities have been working to continue to grow their business - right now. Also, in the past 2 months, as I’ve traveled across the United States presenting to groups in more than 30 cities, I have been asking ‘what’s working right now.’ Here are the findings.

Are seminars working?

Public Seminars/Social Event: Just when many people had written off seminars as an expensive strategy that hasn’t been as successful as a few years ago - they are working again! And dramatically!

According to one of the seminar marketing firms, things are looking up!

“Like in past downturn years (i.e. after 911), we see activity levels rise in mailing orders and in seminar attendance,” said Jorge Villar, President of Response Mail Express, a seminar marketing firm in Tampa, FL. “Folks are looking for something better or different in these types of times. And, consumers are looking to learn about newer options, alternate solutions and trends.”

The truth is, the large public seminars are generating more qualified attendees than ever before. By using a proven seminar marketing system, advisors are starting to see response rates that have doubled in the past 3 months!

Referral based seminars: A seminar idea that has worked in the past and continues to work with low risk and low cost is niche based referral seminars. One strategy being used is called the “5-5-5-20″ seminar. You simply pick 5 or more of your clients that are in a niche (ie. they retired from the same company). Mail each client 5 invitations to an upcoming workshop on a seminar like How to Retire from LOCAL COMPANY in Volatile Market Conditions. Then make phone calls to the 5 clients personally asking them to pass those invitations along to others who are getting ready to retire from this company. Right now this strategy is generating more than 20 people in attendance at each seminar for advisors. It costs very little (about $2.00 for the whole mailing), attendees are very interested in the timely and targeted information, and you don’t even need to serve dinner! Advisors are conducting these seminars at community centers, libraries and in their offices.

Presentations for Existing Groups: Recently, there has also been an increased interest in having financial professionals speak at meetings of groups and organizations. One advisor we talked with is an active member of his large Chamber of Commerce. He has been asking for years to speak at one of the Chamber’s monthly luncheons. Again and again he was told ‘no.’ In early October he went to his Chamber and mentioned he had a presentation called, “What NOT to Do With Your Money Now.” They cancelled their previously scheduled speaker and put him on the agenda as the main speaker. Have times changed! Now, people really do want to hear you!

Do inexpensive grassroots-type Initiatives work?

An advisor in Illinois didn’t want to spend a lot of money finding new clients right now. So, he copied a strategy that some politicians were using. He and his staff go to the train station once a week during morning rush hour. They purchase coffee from the local provider and then pass it out for free to riders boarding the train. They also give out a flyer that says, “Nervous about your investments? Call xxx-xxx-xxxx.” It includes a picture of the advisor, a list of services, and their compliance information (of course!). They have scheduled appointments, have already identified millions of dollars in potential, and closed a $1,000,000 sale. You see, just about anything you do right now to reach out to investors is working - even this!

Are referrals Increasing or decreasing right now?

Even the simple strategy of asking current clients for referrals is working better than even a year ago. In the past, a typical question asking for referrals may have produced an answer like, ‘I really don’t know anyone.’  But today when you ask the question, ‘Do you know anyone nervous about their investments?’ -  the answer you get is dramatically different. The answers are ‘yes’ and ‘everyone’ and the referrals are coming in!

How about advertising?

The same advertisement that an advisor has been running in his local newspaper to generate exposure only in good times is generating phone calls from interested prospects in these volatile times. We have heard from many advisors that simple ads with a strong call to action are producing interested prospects. Many of the ads simply ask the question, “Are you nervous about your investments?”

While many advisors are pulling in the reins on their marketing and spending, market volatility brings a perfect time to increase your exposure. Right now is the time to let people know that you are an advisor with personal solutions. Yes, it takes confidence to increase your activity in turbulent times, but that’s what clients are looking for… Confidence!