Connecting with the HNW market: Start with research

Financial advisors looking to expand their clientele in the high net worth market can feel intimidated without referrals or a clear starting point. The best way to break into the market is to start with research. By identifying your prospects and their business’s needs, you can correctly provide solutions for your ideal client base and start to build long-term relationships.

Catering to the market

The first steps in entering a new market are discovering and understanding what types of individuals you would serve. Start by researching previous consumer studies in your region to learn your prospects’ insurance-buying habits and the services they pay for. Knowing what products and services they’re interested in will provide insight into what they may expect from you and what they might need help with. 

For example, let’s say you’ve discovered your target audience prefers having personal insurance coverage instead of dealing with employer-provided coverage. In this case, research more personal coverage options and take note of the ones with the most flexibility for future clients. You will boost your credibility and showcase your dedication to their needs by being able to answer questions immediately.

Identifying an area of need

Through your research, you’ll likely find a gap in what high net worth clients would like to see from their advisor compared to what they receive. Discovering what differentiates you from other financial advisors will help you position yourself as an advisor who can provide solutions and help clients reach their goals. 

Forging the connections

Stepping into the high net worth market will require you to network with as many of your target prospects as possible. Host bimonthly or quarterly webinars to discuss identified service gaps or current trends in the market. Sharing your expertise online will help more prospects learn from and trust your advice. When you’re able to share your wealth of knowledge about their specific needs, you can easily reach your audience, and you’ll eventually be seen as the go-to advisor for that market.

Getting referred to high net worth clients when you don’t have any yet is difficult — if you’re accustomed to working with teachers, they will likely refer you to more teachers. When you know the expectations and the needs of your target market, it’ll help you find exactly who you’re trying to reach.

The steps before you enter a market are just as important as the steps you take once you find new clients. Ensure you’re conducting adequate research, and then leverage the information you discovered to distinguish yourself from the competition. Knowing what the average high net worth client wants and providing them with it will help you naturally grow your clientele. 

Karl Hartey is the founder and CEO of Hartey Wealth Management in Chester, England. Karl is a 28-year MDRT member with more than 30 years of experience in financial services. Contact him at [email protected].