Question

best methods for prospecting high net worth individuals (for wealth management)

Answer 1

There are several ways to prospect high net worth individuals and no single method is right or wrong. The following methods are generally used to prospect high net worth individuals:

1. Referrals - One of the most effective methods to prospect high net worth individuals. Getting a warm introduction from one of your existing clients to a prospective client helps add credibility and trust.
   1. Advantages include high trust and credibility, better conversion rate and time-saving.
   2. Disadvantages include a difficult method to pursue when you are just starting your career/company and convincing your existing clients to refer to other prospects. The existing client will only refer to other prospects if they are happy and satisfied with your services.
2. Seminar and events - Presenting on different seminars and events attended by high net worth individuals is another way to build your credibility and introduce yourself to prospects clients. It is important to choose an event that is in line with your service/product - wealth management in this case.
   1. Advantages include a chance to pitch to a large number of clients at a single venue. Additionally, every attending the seminar or event is already interested in your product/service, which makes helps in a more focussed approach.
   2. Disadvantages include the high sunk cost to get a chance to present in a seminar. However, the overall cost of acquiring each client can reduce if the conversions are high. Seminar and events require a lot of time and cost investment.
3. Cold Calling - While cold calling may not sound as glamorous as it once used to be, it can still help you prospect high net worth individuals.
   1. Advantages include a fairly cost-effective method with almost no support infrastructure required. Additionally, you can win over the client much before you actually meet them or discuss your product, by the research you've done on them before making the call.
   2. Disadvantages include a large number of rejections which can lead to frustration, very little information available about the client before the call and the effectiveness depends on the quality of the database you have.
4. Digital Marketing - You could use a number of social media marketing techniques on platforms like Facebook, LinkedIn, etc. as well as the use of Google Adwords to target a specific set of consumers. Often digital marketing is complemented by other methods like email marketing and cold calling.
   1. Advantages include being cost-effective, the ability to target a niche set of consumers and high conversion rates.
   2. Disadvantages include the requirement of advanced digital marketing skills for better conversion rates and it is a time-intensive exercise.