How established advisors get clients

Referrals are a good way to grow your practice, but you’ll need other methods if you want to take your business to the next level. Here are five strategies established advisors use to beef up their books.

Read: Sharpen your prospecting skills

Strategy #1 – Client prospect dinner

Invite one or two clients to a fine restaurant. Ask them to bring a co-worker or neighbor.

How it works: The informal atmosphere makes everyone relaxed. The client has pre-sold for the advisor beforehand.

How do they get business? Often the client talks about their relationship, perhaps volunteering details about the platform used or results delivered. The guest might express interest and ask you to give her a call.

What are the problems? Advisors invite the wrong clients. Some accept but don’t bring a guest. Others are unhappy with the relationship and tell the world.

Strategy #2 – Retirement Party for Client

Retiring clients often have friends in the same boat.

How it works: Advisor invites a retiring client out to a celebratory lunch. He’s asked to bring a couple co-workers retiring a few months later. Advisor draws them out about future plans and the client thanks the advisor for help with the transition.

How do they get business? The guests need the same type of help. By talking about the transition, your client, their trusted friend, has recommended you as an expert.

What are the problems? Cost. You’re buying lunch for a client plus a couple guests. Also, the guests could already have advisors helping them.

Strategy #3 – Movie Theater Event

Young, wealthy couples have no free time. But they make time for their young children.

How it works: Advisor rents out a theater in a multiplex. They invite clients and prospects with children and encourage them to invite other young parents with children. They screen a suitable film.

How do they get business? The advisor meets each guest on arrival and departure. They speak briefly, gathering contact information with a door prize drawing. Attendees leave with literature. Next month he contacts the attendees, invites them again and encourages them to bring guests. The event can grow.

What are the problems? Cost. Also, some attendees may not be suitable.

Read: Prospecting? Don’t be too obvious

Strategy #4 – Free Service to Attract New Business

You provide financial planning and offer it without strings attached. You’d like to be notified when other business is put out for public bid.

How it works: A private school has an endowment. You offer to provide financial planning for the senior administrative staff at no charge. When the finance committee reviews the performance of the money managers used for the endowment, it’s standard practice to invite other money managers to present as part of the due diligence process. You’d like to be notified.

How do they get business? The senior administrators might approach you with help managing their personal finances. You’re notified when the finance committee considers outside money managers. Ideally you and your firm have the opportunity to present.

What are the problems? The finance committee isn’t interviewing other money managers.

Strategy #5 – The Grand Gesture

Your wealthy friend is also a prospect. Make a lasting impression and get them talking about you.

How it works: Your friends are taking a luxury cruise. You arrange for a bottle of French champagne to be delivered tableside at their first formal dinner. Other guests see the bottle arrive. It’s for your friends. There’s a card attached. “Hope you enjoy your transatlantic crossing as much as we did.”

How do they get business? You become the topic of conversation among their new friends. You’re seen as thoughtful and considerate. Guests ask what you do for a living. Your friends realize having you as an advisor would be a good thing.

What are the problems? Cost is about $50 to $100. There are also compliance considerations: is the bottle permissible within your firm’s monetary limitations on gifts?

Read: Prospecting on vacation