How do you network within the HNW social set?

There’s a story that says Willie Sutton was once asked, “Why do you rob banks?” He replied, “That’s where the money is?” It may be unclear whether he had that clever comeback, but the logic is solid. If you want to build a clientele of high net worth individuals, you must become part of their world. It is easy enough to find their social organizations and nonprofits. What do you do next?

Start by joining. You need a strategy. Don’t simply send in your check for membership dues and wait for business to find you. Be proactive. It takes time and money. Choose four social or nonprofit organizations attracting HNW individuals. These groups have meetings or events putting at least 100 people in a room every month. The organizations you join must be in different categories. Otherwise, you will see the same people!

Show up. Woody Allen famously said: “80% of life is showing up.” Commit one evening per month to attending an event for each group. Each event takes two hours plus travel time. If you are reluctant because evenings are your free time, tell yourself you are “prospecting on your feet.” When you were new to the business, you had at least one weekly office worknight. This is the same thing.

Set a goal to meet six new people. Every time you attend an event, seek out six new faces, introduce yourself and start a conversation. You are not leading with business. If you are at a homeowner’s association meeting, ask: “What brings you here tonight?” If you are at a museum opening, ask: “What’s your favorite painting in the exhibition?” This is not easy. In addition to “working the room” (also known as “grip and grin”) say hello to familiar faces.

What do you talk about? Try to learn three things: Who they are, where they work and what they do. You want to get three points across: Who you are, what you do and why you are good.

Outcome. Do the math. Four nights out and meeting six new people yields 24 new contacts a month. Do this for 12 months and you have met new 288 people! Since you are in groups attracting the wealthy, you have 288 HNW prospects, right? Wrong. Take away a third of those prospects. They are charming, but they are not wealthy. They can be great friends and referral sources. Now take away another third. Why? They are wealthy but they can’t stand you! What did a financial advisor ever do to them? This leaves the remaining third, almost 100 people who are wealthy with shared interests.

What does this cost? Being active with a social or nonprofit organization is not free. This is a benefit because it is a barrier to entry for your competitors. Why? Because many agents and advisors are cheap!  They are reluctant to reach into their own pocket to get involved in the community. Using a local art museum as an example, to be actively involved you will be reaching into your pocket several times.

• Membership dues. Joining at the basic level is fine. This should be less than $100 annually.
• Extra events. It might be a jazz night at $50 a head or a gala at $250 a head.
• Annual appeal. Most nonprofits send out letters seeking donations close to Christmas. Assume this will be $100.

At this point, you are a “player.” You are not seen as in it for the freebies. Membership has several tiers, each costing more than the previous tier. Each tier represents a list. The higher you climb, the more exclusive the invitations and parties.

As the months turn into years and your involvement deepens, you will be asked for more money. It’s similar to when you bring a new client in, then seek a greater “share of wallet.” The development staff at museums would make great financial advisors! They do the same. Those additional costs might be bringing your business in as an additional membership, pledging to the capital campaign or sponsoring an event.

How much time does this take?  If you are committing one evening per month to each social or nonprofit organization, the first time commitment is that entire evening. The event might be two hours plus travel time. You might network before or afterward. (“Anyone interested in getting something to eat?”)  Those extra events mean additional time too. A golf outing and dinner can take up most of a day.

If you see people once a month, it will take forever to get close to them. You need to see each other between meetings. This means getting together socially for drinks or dinner. When you entertain at home or meet at a restaurant, it takes 4-6 hours out of an evening.

You are investing your time. You are reaching into your pocket. You are making connections that would be out of your reach if you simply sat in your office and prospected the old way.

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