UHNW Prospect
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[quote=etj4588][quote=anonymous]
Either the guy is going to meet with you or not. If he won't, it's more than likely that when he said to call him with ideas, he was blowing smoke up your ass.[/quote] As I said earlier, I'm not concerned with getting the second sit-down. I'll get it. After thinking about his for a while, I feel as though I may have to begin with this prospect by coming up with some good ideas to get him comfortable with me. Meet with him a few times, grow the account, and then start bringing up some estate planning techniques like purchaseing life Insurance in an ILIT to pay estate taxes... and then see where that conversation goes. Timetable should be about six months or so. Thoughts? [/quote] Stop thinking and start asking. You are playing games in your mind when you should be asking him questions about what he wants. The timetable shouldn't be 6 months. It should be closer to 6 minutes. Call him. Meet with him. Find out what he wants. Sell it to him. If you can help him accomplish whatever it is that he wants to accomplish, he'll be comfortable with you. Since he's already met you, if he agrees to a sit down, it means that he's already comfortable. I just don't get the thought process of guessing what he wants when you have the ability to ask him.I did ask him. Conversation went like this…
Him: If you come up with some good investment ideas, don't be afraid to pick up the phone and call me. Me: What types of things are you looking for? Him: I invest in everything. Thats when he went into his spiel about the three buckets (with emphasis on the riskier stuff).You asked a very different question, or at least, he answered a very different question.
You asked him about what types of investments he wants. I'm suggesting that you ask him about what he wants to accomplish.
His answer about investing in everything gets you nowhere. An answer to what he is trying to accomplish gets you to exactly where you need to be.
[quote=etj4588][quote=anonymous]
Either the guy is going to meet with you or not. If he won't, it's more than likely that when he said to call him with ideas, he was blowing smoke up your ass.[/quote]
As I said earlier, I'm not concerned with getting the second sit-down. I'll get it. After thinking about his for a while, I feel as though I may have to begin with this prospect by coming up with some good ideas to get him comfortable with me. Meet with him a few times, grow the account, and then start bringing up some estate planning techniques like purchaseing life Insurance in an ILIT to pay estate taxes... and then see where that conversation goes. Timetable should be about six months or so. Thoughts? [/quote] You have to make sure that you are not getting too confident with yourself. Confidence is good, but the guy's got $50 million. If you don't think he has 15 guys calling him per week, or a hundred other guys that have had dinner with him and tried getting business from him you're crazy. When you say 6 months, is that when you expect to have the 2nd sit down, or when you think you'll have built the relationship up enough to where he'll sign the ILIT paperwork? It just sounds to me that if a guy with $50 mil tells me to "Call me if you have any good ideas," and "I invest in everything", that it was an easily crafted way of blowing you off. Since only you were there, you are the only one here that understands the context of the conversation, but its probably a conversation he's had (As well as an answer he's probably given) like 1,000 times by now. Good luck though.[quote=3rdyrp2]
You have to make sure that you are not getting too confident with yourself. Confidence is good, but the guy's got $50 million. If you don't think he has 15 guys calling him per week, or a hundred other guys that have had dinner with him and tried getting business from him you're crazy. When you say 6 months, is that when you expect to have the 2nd sit down, or when you think you'll have built the relationship up enough to where he'll sign the ILIT paperwork? It just sounds to me that if a guy with $50 mil tells me to "Call me if you have any good ideas," and "I invest in everything", that it was an easily crafted way of blowing you off. Since only you were there, you are the only one here that understands the context of the conversation, but its probably a conversation he's had (As well as an answer he's probably given) like 1,000 times by now. Good luck though.[/quote] Yeah, I get what you are saying, but this guy and my client are very close, and I doubt he would just blow me off like that. I've been doing this long enough to know when someone is being polite and when someone is serious... and he was serious. No, the six month time-frame would be for talking about the ILIT.Why the heiL wold you sell a million dollar va to someone with 20mm? are you retarded?
[quote=snaggletooth][quote=buyandhold] [quote=Sam Houston]This is a $50mm prospect and the best you can come up with is pitching him a muni? Wow.[/quote]
Maybe whip out the ICA guide?
Seriously, I’d love to hear what this guy is looking for – and what the UHNW are all about, just in case I doorknock one.
[/quote]
i have 2 uhnw clients and if i ever tried to sell then an eia they would leave immediately. obviously some of the people here have absolutely no clue what rich people want.
they want something they can’t get anywhere else. a muni is stupid - they’ve got other advisors selling them munis and even though every brokerage tells their reps they have exclusive munis - thats bs.
if you sell a single product you are now a salesperson. the rich want a private asset manager; private bank; private equity; etc. they don’t want some b/s insurance product or muni bond or fund.
you need to find an investment that really is exclusive. maybe a hedge fund that is otherwise closed to new investors or that you can get them into with 1mm even though the normal minimum is 10mm. better yet, have your own proprietary product/sma/uma/etc that they cannot get anywhere but from you.
that will get business - not 99% of the S**T ideas on this post.
[quote=deekay][quote=iceco1d]I see your point. I suppose I took this…
don’t bother with the ilit. do you seriously think they haven’t heard that one before?
an ilit will SCREAM you’re a salesmen and product pusher and you’ll never get the real money. find a way to make 0.5% on 30mm or so of the dough and you’ll make way more money and get way more referrals and build much more value in your business than you’ll ever make selling a big ins policy.
[quote=etj4588][quote=anonymous]
You know what's stupid? You not being able to use proper puncuation.
"Find a way to make .5% on $30mm..." doesn't scream salesman to you? It sure as hell does to me. How do you propose "adding value" by charging that .5%? Hedge fund of funds? Some SMA? Playing wetnurse to some spoiled-ass nephew who's waiting for the patriarch/matriarch to die?
You (and all of us for that matter) have no idea what the client wants or needs. OP hasn't asked questions that would lead us to a proper recommendation. Maybe private equity is appropriate. Maybe an ILIT is. Maybe an EIA or muni or SMA is. Who knows? Until OP has this discussion, all this noise is just that - noise.[quote=iceco1d]
Wealthy people buy munis. I don't know how else to say it. [/quote] They do, but almost every firm shops the street. Inventory is sh*t because everyone has access to the same munis. He already told me he buys munis, so how am I going to differentiate myself by offering him what his current advisor is offering him? Is he going to give me the business out of pity or charity? Brandnewadvisor has some good points about exclusivity and things they can't get elsewhere. I learned from my client last week that this guy was a major investor in a private placement deal a few years ago. High risk venture. So, I know he gets intrigued with exclusive offers. I'm meeting with the guy next week, btw.Jim Prospect, I know you wanted me to call you with an idea, so I've been thinking, what can I call you with that would peak your interest and get a relationship started. I thought and I thought and I racked my brain until finally I came to the conclusion, that's not what I do or how I operate Jim. What I offer that is different from everyone other Joe on the street trying to sell you something, is a relationship based on trust and on service. My value is getting to know you and understanding your situation, reviewing what you have and making recommendations that will complement your current portfolio. Now Jim I can call you up and tell you about an investment I use and tell you how terrific it is, but it might not be right for your situation. Jim others may tell you this but this is what I've built my practice on and the only way you will know for sure, is if we do business together. Why don't we get together, I'll buy you lunch and we can discuss what you're looking for and what I do for my clients.
Sometimes blunt honesty works extremely well.[quote=Borker Boy]Wow, that brought a tear to my eye.
(BTW, I think you meant pique.)[/quote] You are correct and thanks for pointing it out. It's hard to be grammatically correct when you are writing a mission statement. I mean memo.[quote=jkl1v1n6]
Jim Prospect, I know you wanted me to call you with an idea, so I've been thinking, what can I call you with that would peak your interest and get a relationship started. I thought and I thought and I racked my brain until finally I came to the conclusion, that's not what I do or how I operate Jim. What I offer that is different from everyone other Joe on the street trying to sell you something, is a relationship based on trust and on service. My value is getting to know you and understanding your situation, reviewing what you have and making recommendations that will complement your current portfolio. Now Jim I can call you up and tell you about an investment I use and tell you how terrific it is, but it might not be right for your situation. Jim others may tell you this but this is what I've built my practice on and the only way you will know for sure, is if we do business together. Why don't we get together, I'll buy you lunch and we can discuss what you're looking for and what I do for my clients. [/quote]
Hey thanks John Advisor for being honest with me. I really appreciate what you do and how you do it. But I'm 70 years old John. And I have a 40-year relationship with my current advisors. In short John, I don't need you. I was hoping to build a relationship with you through testing the waters with a few decent ideas, but I understand that's not what you do. Thanks for calling John. Click.I'm sorry Jim you misunderstand me. I never said I wanted to takeover your entire account and replace all of your prior relationships. I'd just like to sit down and visit with you so I can better understand what you want to accomplish and you can see how I work. How can I offer you a decent idea that is appropriate for you if I have no idea what you currently have or what you are looking for? That's why I think we should get together for lunch next week.
John, I’m a simple guy. Grew up on a farm, got lucky and built a good business. Worked hard for 40 years. If you haven’t figured it out yet, I want to make money. Plain and simple. Show me how you can make me some money.
Well in that case Jim, I think GE is a good stock to own right now, oh you already have some, how about caterpillar, got some of that too, john deere is a good stock, you’ve got that already also, McDonalds, own it, Coke, jeesh that one also, Wal-mart, boy you own a lot already. How about some municipal bonds, good tax free income, you already have a million in them. Jim this is why I think it makes sense to sit down to visit, how can I possibly show you how to make money if I have no clue as to what you currently own. I can throw ideas at you left and right but why would you want your portfolio constructed in such a random way. Jim you built a great business and put a lot of work into it, you’re too smart of a guy to risk all of your hard work with a portfolio of investments put together by buying random ideas presented to you by various advisors. No harm in just sitting down to eat and talk, how’s Monday work in your calendar? Booked up on Monday, well how about Tuesday?
"You've got advisors for making you money, correct, UHNWP? My job is to help you spend your money without ever running out while passing along the biggest net estate possible to who and what is important to you. That's how I will add value to your life."John, I’m a simple guy. Grew up on a farm, got lucky and built a good business. Worked hard for 40 years. If you haven’t figured it out yet, I want to make money. Plain and simple. Show me how you can make me some money.
"You've got advisors for making you money, correct, UHNWP? My job is to help you spend your money without ever running out while passing along the biggest net estate possible to who and what is important to you. That's how I will add value to your life."[/quote] Out of curiosity, how does an annuity accomplish this?[quote=etj4588]John, I’m a simple guy. Grew up on a farm, got lucky and built a good business. Worked hard for 40 years. If you haven’t figured it out yet, I want to make money. Plain and simple. Show me how you can make me some money.
"You've got advisors for making you money, correct, UHNWP? My job is to help you spend your money without ever running out while passing along the biggest net estate possible to who and what is important to you. That's how I will add value to your life."[/quote] Out of curiosity, how does an annuity accomplish this?[/quote] Who said anything about an annuity?[quote=deekay][quote=etj4588]John, I’m a simple guy. Grew up on a farm, got lucky and built a good business. Worked hard for 40 years. If you haven’t figured it out yet, I want to make money. Plain and simple. Show me how you can make me some money.