How To Win New Valuable Affluent Investors

Firstly, what is the definition of an affluent investor?

The definition of an affluent investor can be classified in its simplest form by their net worth and income. We also believe that affluence comes from the capability for a prospect or lead to make sound financial decisions, accept risk and leverage resources such as capital to generate more wealth.  There are 2 types of affluent investors you need to know.

Affluent Investor Leads

What Is a Qualified Purchaser

By the rules, regulations and guidelines of the SEC, a qualified purchaser (QP) must meet 1 of 4 different criteria in order to be involved with certain investments or deals.

  • An individual or person that owns $5 million or more in investable assets
  • Family owned company or companies that own more than $5 million or more in investable assets
  • Certain types of trusts or people acting for their own or pool of qualified purchasers (QP) that when put together, is $25 million or more in investable assets.

For financial advisors, these prospects and future clients
have the potential to be your best source of business growth. It will give you
the ability to offer more tailored, diverse and integrating solutions. These
affluent investors are also more open to new ideas and relationships as long as
there is clear upside to them.

Odegee data is able to estimate qualified purchasers based on data pulled from
multiple sources. If you target these individuals and need extra information to
help win business, it may be a good investment for your practice.

What Is a Qualified or Accredited Investor

These individuals and households are much more common due to the thresholds of income and net worth. The dictation of these investors still fall under SEC guidelines and are as follows.

  • Either by themselves or with their spouse have a
    net worth that exceeds $1,000,000 excluding the value of their primary
  • Income in excess of $200,000 or joint income in
    excess of $300,000 (with a spouse) with the expectation that this income will
    stay the same or rise in the same year.

These individuals and families are a great source and building block to build a financial advisor practice. Generally speaking, you can tap into a certain profession if you want to target a larger base of accredited investors. Odegee Data maintains and grows their database of these accredited investors and carries more information to help you target them.

Understand what is needed to make a connection


To make a connection, we need to figure out different
marketing methods in order to catch their attention. This can be done simply by
leveraging some of your internal specialists or crafting marketing material
that will appeal to the investor. Some avenues that can earn the ear of an accredited
investor is lending.

This of course varies based on the individual you are
approaching but many successful individuals and families use leverage to
purchase business assets, real estate and market securities to grow their wealth
quicker than using non-leverage.

Offer structured lending against their investable and non-investable assets. Structured lending can be more favorable in terms and rates which may attract other affluent investors.

Offer Up Your Value before Anything

This should go without saying but we see too many financial professionals
aiming strictly with product and ONLY investment management. Needless to say,
you will be competing with too many of your peers if you are only tied to this

Spend the time to research your prospect and find an avenue you can take that you can put into real numbers and terms for them. Leverage Odegee Data to see if they own any real estate, stock options or businesses you can find some solutions for.

Build a hypothetical scenario in which you offer a solution
for something they own. For example, if they own a business, you may put together
a scenario where they use leverage for expansion, how it increases their
operational revenue, effect on costs, insurance and how it can positively
impact their overall net worth.

Going out of your way in such detail shows the investor you mean business and can work any scenario, regardless if your sample applies to them or not.

Be their ally and go to person

This can be a very easy but critical element for an advisor to have in place. If you work at a larger firm, you may have these specialists at hand already. If you do not have these in house, build these relationships in your area as quickly as possible.

Be proactive in asking questions that will have these affluent investors talking, thinking and explaining in detail what they need and what problems they face. Consider yourself a teammate and directly responsible for their success. They succeed, you succeed and vice versa. Be the person they can always call, text or email day or night for anything directly related to their success.  

Communicate clearly and frequently

This can’t be stressed enough. Affluent individuals expect
and should expect constant and frequent communication. Be proactive by
providing a friendly phone call, birthday and anniversary cards. Keep on top of
their businesses, real estate ventures, personal and professional lives.

Put them on a drip campaign with marketing materials that will enhance the quality of their lives.