Need Some Pointers

DC2188

Super Genius
100+ Post Club
128
I just accepted a position at a financial planning firm and I have to build a book of business from scratch and meet quarterly and end of the year quotas. What is the best way for me to acquire middle income to high net worth clients?
 
You put the cart before the horse. You took a job without knowing how you would fulfill the requirements of the job. I hope your firm offers better financial planning advice than they did career planning advice. (I hope you recognize the irony of your situation.)

Do you know how you are compensated and what metrics they are asking you to meet each quarter?

I'm going to guess from your post, that you're with a wirehouse of some kind - Merrill Lynch, Morgan Stanley, Wells Fargo Advisors or UBS. They'll usually pay you a salary and review your Assets Under Management accumulation every quarter. If you hit your benchmarks, you're allowed to work another quarter. If not, you get the door.

I have a friend of mine who loves using InfoUSA's "WealthFinder" lists. I'm sure Josh could help you come up with some parameters for a list to compile and begin to cold-call. I'd also do what all new Edward Jones advisors do - go door-to-door to introduce yourself in the nicer parts of town.

What I would do, is focus on gathering accounts between $100k - $1 million in size. Offer a better wealth management alternative than what they probably have going on right now. I'd study your strategic and tactical asset allocation programs offered by your firm and show how much "better" they are than pure mutual funds, or variable annuities without a living benefit rider.

Some of these clients never hear from their advisors... and yet, if you have enough of these clients, you'll meet ALL your AUM goals.

Think about this: Ric Edelman has one of the largest RIA firms in the country with a $14 Billion AUM and 26,000 clients. That's an AVERAGE client size of $538,000. All you need is 100 of these clients for a very successful book of business of only $53 million. And they are EVERYWHERE.

Dave Mullen teaches to go after 1 $250,000 account every month... and 1 $1 million account every quarter. In 10 years, you'll have $120 million AUM... earning .8% or $1 million in AUM fees (then put through a grid if you're with a B/D).

I haven't read these, but I would read Thomas Stanley's guides to "Marketing to the Affluent" and other similar books.

You have to commit to ongoing client service discipline. Don't just promise, but show how you will keep in regular contact with your client... and actually follow through. This will be how you will earn referrals from this market.

Clients will not 'blame' you for losing value in their portfolio when the market declines... but if you can help them prevent such steep losses, you'll be better off. That's what a good tactical asset allocation program can do. You won't get the "highest highs", but you won't get the "lowest lows".

If you feel that you need a "hook" to meet with people... I'd get this software package and offer a free comprehensive retirement income plan in about 15 minutes. Professional Financial Planning Software for Financial Advisors

Oh, and here are their 9 ways to get leads using their software.
http://www.torrid-tech.com/pdf/Torrid-Top7WaysToGetLeads.pdf


I think I'll charge you $1,500 for this post. Just send me a cashier's check. ;)
 
Last edited:
I'm just starting to really look at what is in the "Retirement Planning Forum" and have to wonder why this post is here.

The response by DHK is excellent, by the way, and the original poster should have at least acknowledged the effort.

Anyway, I wonder if he posted here because the position he was filling was supposed to be aimed towards the retirement market. He never explained much about what he was asking and why in this forum.
 
I dunno. What they're asking him do come up with sounds hard unless he already belongs to the country club.

Going out from scratch hunting for middle and high-end clients is not exactly the easiest job in the world.

Oh well. The last guy I saw who was waiting to take his tests was a new guy at Merrill Lynch and they were making their guys also go the RIA route. This guy had flunked 3 times and that day was his last chance or he was fired.

Talk about pressure. I would not go that route for anything.
 
I dunno. What they're asking him do come up with sounds hard unless he already belongs to the country club.

Going out from scratch hunting for middle and high-end clients is not exactly the easiest job in the world.

Oh well. The last guy I saw who was waiting to take his tests was a new guy at Merrill Lynch and they were making their guys also go the RIA route. This guy had flunked 3 times and that day was his last chance or he was fired.

Talk about pressure. I would not go that route for anything.

We all have to start somewhere...the good news is that the Merrill guy/gal who makes it through the first 5 years is rarely "scraping by"...

I meet plenty of independents who left the structure of a wire/captive system too early for higher comp. They make less than some internal wholesalers.

For what it's worth...I wouldn't want to go that route either. It is a VERY tough road...but those who make it write their own check (and it is normally a big one).
 
Call business owners and pitch asset management strategies to them. You will need a quick and unique pitch. That is the quickest/cheapest/easiest way to gain assets from mid to high net worth people. InfoUSA is a database that most public libraries offer for free through their website, all you need is a library card. You can look up businesses and put a lot of different filters on it.

There are also lists out there you can buy for certain demographics. If you call InfoUSA they have a lot more available than just the free database. You can filter by age/income/estimated net worth/estimated investable assets/etc. Josh, here on the forum can help with lists too, but I dont think that his lists are scrubbed for DNC. InfoUSA can scrub the list for you. For businesses you dont have to worry about DNC list.
 
Back
Top