Advisers are being distracted by a myriad of things – the GFC, FoFA, the election – when they should really be focusing on building the right clientele if they want to be successful.
The ideal client will be different for every adviser, but Bill Bachrach – an expert who helps advisers be at the top of their profession – says there are some general guidelines for creating and ideal client profile.
“Unfortunately too many advisers get distracted by all the wrong things,” says Bachrach. “They’re all these things that are just distractions that don’t really determine whether or not an adviser first of all, takes really good care of the client, and second of all, builds a business of ideal clients.”
An ideal client is a combination of two things: money and personality, Bachrach said in an interview with previous AFA adviser of the year, Brian Boggs.
The money side is a simple math equation. Bachrach says advisers need to determine how much money each client needs to generate, so that the total number of clients generate enough money for the business to be successful.
“What I think it really boils down to is the ideal client is someone who generates enough income for you to make your business work.”
While Bachrach doesn’t want to suggest only working with the wealthiest people, he says it is a smart strategy.
“Everyone knows where the people with money live in their city. I remember as a young financial adviser, trying to figure this out for myself. It wasn’t ‘where are they’, but ‘how do I get them to talk to me’. That’s the real question.”
The personality side is about the attributes of your favourite clients.
“If you look at your diary and see a name of a client coming in for a meeting and that name makes you smile – besides the fact that that client pays you a fee – what makes you smile when you think about that client coming in for a meeting?”
Bachrach says there are a few common attributes of ideal clients:
People who follow your advice
They turn up on time for their meetings
They come with all the documents they need
They’re pleasant and thankful
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