How to Deal with Ultra High Net Worth Clients

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• published: 26 Jul 2013
• views: 3433

One neat thing about my job is that I've had the pleasure of working with 10 or so members of the Forbes "rich" list, some of the wealthiest people in the world. I've also met about 90 other members of the list and many others who could be on the list, as well as many professionals who serve them. Here are a few things I've learned: - Don't take their wealth for granted. Don't overcharge for services. Just because someone is wealthy doesn't mean they owe you anything at all any more than any other person does. They don't owe you a technology device, ride in their private plane, event tickets or a job. These people are asked for things all the time and it is rude and annoying to be asked or, worse, taken for granted. Sounds petty -- the easy attitude is "Well, they have it, that's nothing to them" people tend to overcharge the wealthy. It's hard for some to relate to but, assuming you are a normal middle class American: you can certainly afford to give someone a dollar or buy them a coffee but, even though you can afford it, you'd be annoyed if someone waited outside your door and said "Where's my coffee?" every morning. You'd also be annoyed if , on payday, the local pizza parlor charged an extra $40 for your pizza because "you could afford it". Never, ever charge a wealthy person more just because they can afford it. It's not that the rich are being greedy, they are in general very generous, they just don't like being seen and treated as walking ATM machines. - Keep the big picture in mind The ultra wealthy have complex lives. What is important to you, might not be as important to them in the grand scheme of things. If you are an interior designer, architect, entreprenuer looking for funding or lawyer or economic and financial advisor (like me!) your business or contract with the UHNW (ultra-high net worth) might indeed be the biggest, most important piece of business in your life. But not in theirs. In addition to the legal deal they may have a totally different business or family issue they are obsessing about. Aside from the design plans for the new plane you are working on, they may have had a company they invested in just go public. I once had a deal with a large investor fall through because an entirely different company that had nothing to do with our deal was caught committing fraud and he instantly put all his focus into that investment. They also have family, close business partners and multiple and complex stakeholders. Most cannot march to their own drumbeat as much as we might think. -Add value Keeping the above in mind, if you want to provide services to the UHNW crowd, you need to provide something that they don't have already. Since they can buy virtually anything that either means being the best in the world at something (no matter how narrow focused) or it means saving them time, or both. If you can provide a good or service that recognizes the complexity of their lives, takes into account their needs and helps accomplish something in a better way, that's a start. Get paid fair but don't gouge. The ultra-wealthy don't mind paying top dollar for top value but they expect perfection, professionalism, confidentiality and to be treated as a priority. Business-wise, the glamor and "cool factor" of dealing with UHNW is great but revenue wise it does not have the best odds. Value car companies are far more profitable than luxury car companies for example and many people spend a lot of effort focusing on a tiny, elite market when a more broad market might be more profitable. I know one financial advisor who earns 50 times more than average and a good amount more than most elite advisors but he focuses on volume and average sized clients. A realtor who sells 50+ regular houses a year earns more than one who sells 3-4 super-mansions. If you are thinking of pursuing the UHNW market, think carefully about your reasons and if it is the best financial and business decision. Good luck!

How to Deal with Ultra High Net Worth Clients

• Report rights infringement
• published: 26 Jul 2013
• views: 3433

One neat thing about my job is that I've had the pleasure of working with 10 or so members of the Forbes "rich" list, some of the wealthiest people in the world. I've also met about 90 other members of the list and many others who could be on the list, as well as many professionals who serve them. Here are a few things I've learned: - Don't take their wealth for granted. Don't overcharge for services. Just because someone is wealthy doesn't mean they owe you anything at all any more than any other person does. They don't owe you a technology device, ride in their private plane, event tickets or a job. These people are asked for things all the time and it is rude and annoying to be asked or, worse, taken for granted. Sounds petty -- the easy attitude is "Well, they have it, that's nothing to them" people tend to overcharge the wealthy. It's hard for some to relate to but, assuming you are a normal middle class American: you can certainly afford to give someone a dollar or buy them a coffee but, even though you can afford it, you'd be annoyed if someone waited outside your door and said "Where's my coffee?" every morning. You'd also be annoyed if , on payday, the local pizza parlor charged an extra $40 for your pizza because "you could afford it". Never, ever charge a wealthy person more just because they can afford it. It's not that the rich are being greedy, they are in general very generous, they just don't like being seen and treated as walking ATM machines. - Keep the big picture in mind The ultra wealthy have complex lives. What is important to you, might not be as important to them in the grand scheme of things. If you are an interior designer, architect, entreprenuer looking for funding or lawyer or economic and financial advisor (like me!) your business or contract with the UHNW (ultra-high net worth) might indeed be the biggest, most important piece of business in your life. But not in theirs. In addition to the legal deal they may have a totally different business or family issue they are obsessing about. Aside from the design plans for the new plane you are working on, they may have had a company they invested in just go public. I once had a deal with a large investor fall through because an entirely different company that had nothing to do with our deal was caught committing fraud and he instantly put all his focus into that investment. They also have family, close business partners and multiple and complex stakeholders. Most cannot march to their own drumbeat as much as we might think. -Add value Keeping the above in mind, if you want to provide services to the UHNW crowd, you need to provide something that they don't have already. Since they can buy virtually anything that either means being the best in the world at something (no matter how narrow focused) or it means saving them time, or both. If you can provide a good or service that recognizes the complexity of their lives, takes into account their needs and helps accomplish something in a better way, that's a start. Get paid fair but don't gouge. The ultra-wealthy don't mind paying top dollar for top value but they expect perfection, professionalism, confidentiality and to be treated as a priority. Business-wise, the glamor and "cool factor" of dealing with UHNW is great but revenue wise it does not have the best odds. Value car companies are far more profitable than luxury car companies for example and many people spend a lot of effort focusing on a tiny, elite market when a more broad market might be more profitable. I know one financial advisor who earns 50 times more than average and a good amount more than most elite advisors but he focuses on volume and average sized clients. A realtor who sells 50+ regular houses a year earns more than one who sells 3-4 super-mansions. If you are thinking of pursuing the UHNW market, think carefully about your reasons and if it is the best financial and business decision. Good luck!