For rookie financial advisors — and veterans aiming to build a book of ideal clients — finding your “natural market” is a critical first step.
Your natural market, says Sara Gilbert, founder of Strategist in Montreal, is that segment of the market made up of people with whom you share common ground.
“A natural market allows advisors to be really who they are,” Gilbert says. “You have things in common, you speak the same language and you are going through the same phases in life. You easily build relationships because you automatically connect.”
Gilbert offers the following advice on how you can find — and connect with — your natural market:
> Look beyond wealth
Most advisors dream of linking up with high net-worth clients. But wealthy clients with whom you have nothing in common should not be your prime target market.
“It’s hard for a 25-year old advisor to prospect a 65-year old professional as a client,” Gilbert says. “That’s where the wealth is, but [the advisor] won’t easily connect with those clients for a whole host of reasons.”
Instead, begin by targeting prospects closer to your own age and who share other characteristics.
> Ask questions
Aside from age, other criteria, such as shared interests in sports, arts or social causes can help you identify members of your natural market.
Ask your prospect plenty of “softer issue” questions during your initial discovery meeting, Gilbert says, to find and out whether you have common interests.
“As soon as you have one point of connection, the relationship is a lot easier to build” she says. “The ice is already broken.”
> Know yourself
Identifying your natural market is also an exercise in self-reflection, says Michael Apollo, a mindfulness and emotional intelligence specialist in Toronto. Take some time, he says, to figure out what causes or values you are passionate about and would like to see reflected in your practice.
For example, if you are passionate about development or human rights issues, perhaps you should consider offering clients socially responsible investment products.
Just be sure that your interests are genuine. “‘Fake it until you make it’ does not work,” Gilbert says. “People will see right through you.”
> Find issues that motivate you
Working within your natural market will make you a more enthusiastic advisor because you will be lead by issues you are passionate about.
If you are devoting 70 hours or more per week toward building a book of business, Apollo says, the job will be more enjoyable when your work is aligned with your values.
“You will be less stressed,” Apollo says, “because you will be driven by passion, not demand.”
This is the first article in a two-part series on finding your natural market.