How an Asset Management Company Increased Revenue 300% Using Information to Attract, Convert, and Retain Affluent Clients
Longtime client Jim Lange of Lange Financial Group, LLC, provides asset management through his registered investment advisory firm, tax preparation through his CPA firm, and estate planning and will and trust preparation through his law firm.
Before intentionally marketing to the affluent, Lange grossed between $250,000.00 to $500,000.00 for asset management alone, not including the accounting and legal side of his business. Today he is grossing $2 million a year just on the assets under management. Before marketing to the affluent, he accepted clients with assets of $250,000.00 and up. He’s since created a threshold of $750,000.00 and is moving to $1 million by the end of the year. The difference has meant being able to charge roughly four times what he could for the $250,000.00 client. “The big picture is it really takes just as much time to work on a small account as a big account,” Lange said. “And since we have a 98% retainage rate, the lifetime value of a million-dollar client might range from $50,000.00 to $100,000.00.”
Information and trust is the currency for his affluent clients. Applying marketing to the affluent principles, he can spend more to market and serve what his affluent clients want. Lange stresses that it’s not just about charging premium prices. It’s about being able to afford to provide more value to attract, convert (and keep) a client. “I can afford to be generous,” Lange explained, “When people come into the office I can afford to give them a shock and awe box that costs me $100.00. It might be worth thousands to them, but I don’t even have to think about spending one hundred bucks on a prospect because the prospect is so valuable to me. Affluent marketing changes your math—meaning you can spend a lot more money on marketing to get a client and to maintain the account.”
He provides his clients with a plethora of extra resources. He’s written six bestselling books, including his latest, The $214,000 Mistake: How to Double Your Social Security & Maximize Your IRA’s, Proven Strategies for Couples Ages 62-70. He now writes two new books per year. He sends copies to all his clients and to many prospects. (He prefers to ask prospects if they want a copy and then sends them a copy whether they ask for it or not, a technique he learned from Dan.) He does offer the books on www.Amazon.com and donates all royalties to charity. Clients also receive a monthly printed newsletter, invitations to multiple workshops, articles, tax cards, and emails. Plus, he hosts parties for them.
To attract new clients, he holds workshops, and markets with his books. He segments information so consumers can quickly and easily find the answer to what they are looking for when visiting his website. He does utilize Facebook, LinkedIn, and other social media, but does much better in terms of attracting clients through direct mail.
If someone is referred to him, he sends a personalized package with information specific to their situation.
Lange’s found that taking his time in other ways attracts the affluent too. His experience has been to not just pump content out but to take the time to create content that the affluent client will value. Taking his time to write a relevant and informative book, for instance, has paid off, earning him testimonials from Charles Schwab, Larry King, and top IRA experts around the country plus a best-seller ranking. This helps build trust in the affluent community and has built his authority in his market.
JIM LANGE is the founder of Lange Financial Group LLC. Explore his website and marketing at https://.PayTaxesLater.com.