Knock, introduce, build some rapport, and tell them you’ll call them with an idea.   Rinse and repeat.

[quote=MsBroker]So I have ran across a few areas that I believe will have some nice HNW prospects. Large, old houses, with nice cars but not too flashy.

Thanks for the input, volt and berkbull. These aren’t UHNW, but also not blue-collar, if that makes sense. 400k houses when most of the area is 250k. There are some 1mm+ houses in the area, but I know I am not ready to knock on those yet.

My wealthiest client, not biggest yet, is the majority shareholder in a publicly traded company (small company).  I walked into his building, asked to talk to the owner, and told him I’d like to work with him in the future.  Four weeks later, before I could sell, he called me with a stock trade. 

Toughest part of those rich folks is the six inches between your ears.  Like golf and picking up the hottest chick in the bar, it’s all confidence.  Some days I’ve got more of it than others… Windy probably lands those big accounts he’s fond of bragging about because he’s got an ego the size on my john hanc***.

Thanks for the input, volt and berkbull. These aren’t UHNW, but also not blue-collar, if that makes sense. 400k houses when most of the area is 250k. There are some 1mm+ houses in the area, but I know I am not ready to knock on those yet.

[quote=MsBroker]Thanks for the input, volt and berkbull. These aren’t UHNW, but also not blue-collar, if that makes sense. 400k houses when most of the area is 250k. There are some 1mm+ houses in the area, but I know I am not ready to knock on those yet.

No.  This is completely a “between the ears” issue.  If one is door knocking, it makes sense to knock. 

[quote=anonymous]No.  This is completely a “between the ears” issue.  If one is door knocking, it makes sense to knock.  [/quote]

She’s specifically targeting these areas, I’m not suggesting she go through the middle class areas (where she’s shown success by the way) and skip any especially nice houses in that  neighborhood.  I’m saying why TARGET the HNW areas?

Maybe I just can’t wrap my head around why someone would buy an investment from a new broker when they probably either already have someone or are a do it yourselfer.

I sell insurance to HNW people but that’s because they can’t get what I have from their broker.  They’re turning 65 and they need a Medicare Plan.  They’re between jobs and they need temporary health insurance.  They’re a business owner and their investment guy doesn’t do DI or BOE.

I don’t get how a rookie broker will score HNW investment clients unless they stumble across a Millionaire Next Door Type and if they are, they ain’t living in a fancy house.

It really is a mixed demographic. One block of the median houses, then the next block will be the larger ones.



Generally, in my area, everyone falls into the “with a broker” or “diy-er” category. Probably only 25% of my prospects don’t fit in to those, and thats mainly the younger people with just work plans.

[quote=anonymous]No.  This is completely a “between the ears” issue.  If one is door knocking, it makes sense to knock.  [/quote]

She’s specifically targeting these areas, I’m not suggesting she go through the middle class areas (where she’s shown success by the way) and skip any especially nice houses in that  neighborhood.  I’m saying why TARGET the HNW areas?

Maybe I just can’t wrap my head around why someone would buy an investment from a new broker when they probably either already have someone or are a do it yourselfer.

I sell insurance to HNW people but that’s because they can’t get what I have from their broker.  They’re turning 65 and they need a Medicare Plan.  They’re between jobs and they need temporary health insurance.  They’re a business owner and their investment guy doesn’t do DI or BOE.

I don’t get how a rookie broker will score HNW investment clients unless they stumble across a Millionaire Next Door Type and if they are, they ain’t living in a fancy house.

why not just door knock the area and see how it goes?  If every door is answered by Mr. Belvedere and you get nowhere atleast you tried.  Doesn’t mean you can’t go back next month, year, or decade and try again.

I never knocked on a door worth less than $500k…and I failed miserably.

I believe door-knocking can work for any asset-class. But to make the Jones numbers, you have to close sales today. Higher net worth = a longer sale.

So, if you want to stay on track with Jones’ expectations, it’s best if you keep knocking on the other side of the tracks.

Just my $0.02

A 400k house is not HNW. That’s a middle class house with both partners working, or maybe a retired white collar couple whose home value appreciated.
Either way, some of those households will be open to talking to you if you knock.

[quote=buyandhold]A 400k house is not HNW. That’s a middle class house with both partners working, or maybe a retired white collar couple whose home value appreciated.
Either way, some of those households will be open to talking to you if you knock.


[/quote]

Agreed. Even if they are HNW’s, there is no benefit to you for waiting. They don’t know how new you are, or that being new may mean there are serious deficiencies in your investment expertise. At worst, they have your card, and in a few years when you have some tenure they will know your name when you invite them to a seminar. They just know you are knocking on their door to introduce yourself. If you have a compelling story to tell (you do, you are a broker knocking on doors for business, and you are probably hot) then, as anon says, it’s all between your ears.

I doorknocked in a few of these neighborhoods and I was surprised at how willing they were to at least hear me out. It seemed to me that they were savvy enough to understand how different the approach was.

Those people are comfortable, not wealthy, and probably know what it means to work hard. They will probably appreciate the effort.

[quote=buyandhold]A 400k house is not HNW. That’s a middle class house with both partners working, or maybe a retired white collar couple whose home value appreciated.
Either way, some of those households will be open to talking to you if you knock.


[/quote]

Maybe it’s just your part of the country but in my book a 400k investable assets household is upper-middleclass if not HNW. 

$400k investable assets
$200k+ paid-for house
- One of them likely has a pension, that’s got a substantial present value
- Many people in the upper-midwest in the upper-middle-class demographic have a cabin or acreage worth another hundred thousand or two

It’s pretty easy to get $1mil net worth+ if they have $400k investable assets in my part of the country anyway.

I agree a 400k house does not equal HNW.  However, if she has been knocking on folks that live in 200k houses it’s a step up and can be intimidating. 

Also, HNW is relative.  In my area I currently  consider it people with 400k investable assets. It’s 10x the avg. household I come across.  My definition will change over time I’m sure.


Regardless, just knock and go from there.  You know the drill. I’m guessing they’ll be more into stocks and munis than A shares. 

First of all, arguing about the value of a house in relation to someone’s net worth on an open forum is silly. Why? Because every area is unique. I’ll give you an example…in my area (oceanfront New England), there are three types of people (among many types)…(1) the 30-45 year-old that over-extended themselves and bought a brand new 600K house in a huge neighborhood, “rents” two Lexus’s (until they pay them off), and basically lives 180K paycheck to paycheck. These are the neighborhoods you want to avoid. These people are broke, but “look” rich to the outsider. Then there are (2) the 50-65 year old (and older) that lives inland in the same 1000 sqft house that they bought for 45K 30 years ago. Their kids are just getting out of college, they have no debt (or the mortgage is almost paid off), they drive 10 year old cars that they own, and their net worth is in the $1mm range. These are great clients. Then (in my area anyway), there are the “old locals” that own $850K+ homes in wealthy waterfront communities. The homes have been in the family forever, possibly multiple generations, so they own them outright (and the RE taxes are more than most of our mortgages). They have no debt. They made their money owning businesses and real estate. They drive two cars - an old pickup and a Mercedes (the pickup is for daily use, the Mercedes is for taking his wife out to dinner and church). They might own a boat or two. They still tinker around in their garage and work on their boats, and like to do their own gardening (these are people that still have hard-working roots in them). These are also great clients, and in my area are typically wrapped up with one of the “old-timer” wirehouse vets in my area for the past 25 years. You remind them more of their grandson than their advisor. These are tough nuts to crack, and you really only get to them through relationships and referrals.



Point is, there is no “recipe” for tackling a particular group of people, as each area of the country has it’s own quirks. In my area, doorknocking is really only effective in the “#2” case above. But it would be totally different in, say, the Silicon Valley area, or say, “retiree” Florida areas.



Just some perspective.

So, I went for it this afternoon. All that anxiety was definitely not warranted. I think I had better luck in this neighborhood than in the ones I have been hitting. I got an attorney, a radiologist, a few business owners, definitely some people that have money. I only had two rude people, which surprised me. Fourteen contacts in 2 hours.