Insight to Attracting More Female Clients
Today, we dive into insights for attracting more female investors intro your business.
I recently received a great question from Joe, an advisor with a major firm:
“My goal is to attract more female investors to my practice. I have been trying to implement the research process but have had very poor results. Can you give me some insight?”
During the conversation with Joe, I identified a few key elements that turned his results around, and can do the same for you, too!
Below are the five steps to help you attract more female investors:
Step #1: Identify Your Ideal Client
Joe’s first challenge was to identify which affluent women he was targeting. While Joe wanted to work with combination/non-traditional women (women with a career and a family), many of the women he was talking with were traditional (homemakers & wives). He was not aware that there are five different types of affluent women, and that the approach to them differs depending on which group you want to serve.
Step #2: Conduct Research
After some additional research, Joe determined (with a little bit of help from me) that some combination/non-traditional women do not see themselves as “female investors” and do not feel qualified to provide insight on investing.
While the term “investor” has worked for male clients who see themselves as “male investors”, that doesn’t necessarily mean that it works with women. Interestingly, many of the women who see themselves as “female investors” often think in terms of real estate. Make sure that before you use terms or language, you confirm that your prospects and clients understand what those terms mean and can relate to them.
Step #3: Offer an Incentive
One of the most effective strategies to get women to take the time to answer your survey is to provide them with an incentive, such as a special report or a whitepaper. Joe was providing no incentive, but was hoping these successful and busy combination/non-traditional women would agree to participate. Once he took the time to find out what incentive would motivate them, he created a special report that provided insight on some of the common mistakes that combination women make when investing. He quickly started getting traction, and was able to get some of the women who had initially declined the interview to actually participate.
When you are conducting your research in step #2, take the time to find out your ideal client’s biggest challenge and what keeps them up at night. Next, create your paper on the topic, and get it approved by your compliance department. Some examples of topics include, “The 10 Best Strategies to Achieve Financial Freedom” and “What You Need to do to Avoid Investing Mistakes.”
Step #4: Shift Your Focus
Joe, like many advisors, was focused on his goals. He was also very proud of the return on investments he manages. The key with the majority of females (as with all prospects and clients) is to focus on what they want, versus what we want. The majority of women are more concerned about the “ROR” (Return on Relationship) than the “ROI” (Return on Investment). What we think pales in comparison to what our clients and prospects think/want. When you shift from your focus and goals, to their focus and goals, your business can’t help but explode, as it did for Joe.
Step #5: From Chaser to Attractor
Joe is a big producer and has an intensity that has served him well with his bottom-line, aggressive, business-owner clients. He like so many other male advisors jokes about “loving the hunt” in his quest to find new clients. While the chaser model can work to find some new clients, a better approach with women is to attract them. We attract clients by offering them what they want, how they want it. Some great attractor strategies include creating a community, relationship marketing, feeder workshops, and reciprocal referral partners.
This article originally appeared on PMA360.com.
Here’s Why Bitcoin Won’t Replace Gold So Easily
What a week it was.
First and foremost, I’d like to acknowledge the horrific mass shooting that occurred in Las Vegas, the deadliest in modern American history. On behalf of everyone at U.S. Global Investors, I extend my sincerest and most heartfelt condolences to the victims and their families.
The memory of the shooting was still fresh in people’s minds during last Tuesday’s Hollywood premiere of Blade Runner 2049, which nixed the usual red carpet and other glitz in light of the tragedy. Before the film, producers shared poignant words, saying that in times such as these, the arts are crucial now more than ever.
I had the distinct privilege to attend the premiere. My good friend Frank Giustra, whose production company Thunderbird Entertainment owns a stake in the Blade Runner franchise, was kind enough to invite me along. Despite the somber mood—a pivotal scene in the film even takes place in an irradiated Las Vegas—I thought Blade Runner 2049 was spectacular. Even if you’re not a fan of the original 1982 film, it’s still worth experiencing in theaters. Hans Zimmer and Benjamin Wallfisch’s synth-heavy score is especially haunting.
CNET recently published an interesting piece examining the accuracy of future tech as depicted in the original Blade Runner, from androids to flying cars to off-world travel read the article here.
Still in the Early Innings of Cryptocurrencies
Speaking of the future, I spoke on the topic of the blockchain last week at the Subscriber Investment Summit in Vancouver. My presentation focused on the future of mining—not just of gold and precious metals but also cryptocurrencies.
Believe it or not, there are upwards of 2,100 digital currencies being traded in the world right now, with a combined market cap of nearly $150 billion, according to Coinranking.com.
Obviously not all of these cryptos will survive. We’re still in the early innings. Last month I compared this exciting new digital world to the earliest days of the dotcom era, and just as there were winners and losers then, so too will there be winners and losers today. Although bitcoin and Ethereum appear to be the frontrunners right now, recall that only 20 years ago AOL and Yahoo! were poised to dominate the internet. How times have changed!
It will be interesting to see which coins emerge as the “Amazon” and “Google” of cryptocurrencies.
For now, Ethereum has some huge backers. The Enterprise Ethereum Alliance (EEA), according to its website, seeks to “learn from and build upon the only smart contract supporting blockchain currently running in real-world production—Ethereum.” The EEA includes several big-name financial and tech firms such as Credit Suisse, Intel, Microsoft and JPMorgan Chase, whose own CEO, Jamie Dimon, knocked cryptos a couple of weeks ago.
To learn more about the blockchain and cryptocurrencies, watch this engaging two-minute video.
Will Bitcoin Replace Gold?
Lately I’ve been seeing more and more headlines asking whether cryptos are “killing” gold. Would the gold price be higher today if massive amounts of money weren’t flowing into bitcoin? Both assets, after all, are sometimes favored as safe havens. They’re decentralized and accepted all over the world, 24 hours a day. Transactions are anonymous. Supply is limited.
But I don’t think for a second that cryptocurrencies will ever replace gold, for a number of reasons. For one, cryptos are strictly forms of currency, whereas gold has many other time-tested applications, from jewelry to dentistry to electronics.
Unlike cryptos, gold doesn’t require electricity to trade. This makes it especially useful in situations such as hurricane-ravished Puerto Rico, where 95 percent of people are reportedly still without power. Right now the island’s economy is cash-only. If you have gold jewelry or coins, they can be converted into cash—all without electricity or WiFi.
Finally, gold remains one of the most liquid assets, traded daily in well-established exchanges all around the globe. Every day, some £13.8 billion, or $18 billion, worth of physical gold are traded in London alone, according to the London Bullion Market Association (LBMA). The cryptocurrency market, although expanding rapidly, is not quite there yet.
I will admit, though, that bitcoin is energizing some investors, especially millennials, in ways that gold might have a hard time doing. The proof is all over the internet. You can find a number of TED Talks on bitcoin, cryptocurrencies and the blockchain, but to my knowledge, none is available on gold investing. YouTube is likewise bursting at the seams with videos on cryptos.
Bitcoin is up 350 percent for the year, Ethereum an unbelievable 3,600 percent. Gold, meanwhile, is up around 10 percent. Producers, as measured by the NYSE Arca Gold Miners Index, have gained 11.5 percent in 2017, 23 percent since its 52-week low in December 2016.
Look Past the Negativity to Find the Good News
The news is filled with negative headlines, and sometimes it’s challenging to stay positive. Take Friday’s jobs report. It showed that the U.S. lost 33,000 jobs in September, the first month in seven years that this happened. A weak report was expected because of Hurricane Irma, but no one could have guessed the losses would be this deep.
The jobs report wasn’t all bad news, however. For one, the decline is very likely temporary. Beyond that, a record 4.88 million Americans who were previously sitting out of the labor force found work last month. This helped the unemployment rate fall to 4.2 percent, a 16-year low.
There’s more that supports a stronger U.S. economy. As I shared with you last week, the Manufacturing ISM Purchasing Managers’ Index (PMI) rose to a 13-year high in September, indicating rapid expansion in the manufacturing industry. Factory orders were up during the month. Auto sales were up. Oil has stayed in the relatively low $50-a-barrel range, which is good for transportation and industrials, especially airlines. Small-cap stocks, as measured by the Russell 2000 Index, continue to climb above their 50-day and 200-day moving averages as excitement over tax reform intensifies.
These are among the reasons why I remain bullish.
One final note: Speaking on tax reform, Warren Buffett told CNBC last week that he’s waiting to sell assets until he knows the plan will go through. “I would feel kind of silly if I realized $1 billion worth of gains and paid $350 million in tax on it if I just waited a few months and would have paid $250 million,” he said.
It’s a fair comment, and I imagine other like-minded, forward-thinking investors, buyers and sellers will also wait to make huge transactions if they can help it. Tax reform isn’t a done deal, but I think it has a much better chance of being signed into law than a health care overhaul.
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