Key takeaways:

• Moving upmarket for financial advisors can increase revenue per client, allowing for a more personalized experience and strategic scaling without significantly increasing operational costs.
• Connecting with a new, higher net-worth audience requires you to step out of your comfort zone.
• Overcoming challenges requires a mindset shift, strategic adjustments, and a commitment to your growth goals.

When financial advisors say they want to move “upmarket,” it means they’re interested in appealing to a higher net worth audience than they’re currently working with. Essentially, they’d like to shift their book of business to include more clients with more assets.

For example: If your clients are currently in the $500,000 to $1M range, you may be interested in moving upmarket to the $2M to $10M range.

Let’s take a look at why moving upmarket can be conducive to your firm’s growth goals, as well as the challenges that may be standing in your way.

Why Is Moving Upmarket Important?

If your firm has goals to grow and increase its AUM, working with higher net-worth investors can help you generate more revenue per client. This enables you to serve fewer individuals without sacrificing your bottom line while delivering a more personalized, white-glove experience.

Depending on your firm’s current set-up, moving upmarket for financial advisors can be a strategic way to scale without hiring more staff members or working more hours. It allows advisors to keep operational costs slim and maintain a healthy work-life balance. 

Plus, when you’re able to generate more revenue with fewer clients, you can be more selective in who you choose to work with. You may find this especially appealing if you want to attract a niche with very specific needs, such as high-level tech executives with equity compensation.

Challenge #1: Connecting with Clients Outside of Your Current Niche

When you’re already working with a type of clientele, those are the people who will most likely continue gravitating toward your firm. For example, if you’re putting out content (blogs, emails, social media posts, videos, etc.) that speaks directly to this audience, that’s who’s most likely to engage with you.

It’s also likely that a large portion of your new clients come from referrals. More often than not, the people your clients recommend are in similar socioeconomic positions as they are. They may work in the same industry, live in the same neighborhood, attend the same church or clubs, etc. Referrals from your existing clients may very well land you clients who meet your current criteria, but they’re unlikely to help you move upmarket effectively.

Similarly, you may get referrals from your centers of influence, such as attorneys, tax professionals, or insurance agents. But again, these referrals may be people who fit well into your current wheelhouse, since that’s who you have experience serving.

However, you do have an opportunity here to turn professional references into more upmarket opportunities. How? Expand your network to include professionals who serve the market you’re trying to attract.

Challenge #2: It Requires You to Get Uncomfortable

There’s a common quote from IBM’s CEO Ginny Rometty, “Growth and comfort do not coexist.”

It’s comfortable to continue doing what you know best, and that’s serving your existing clients while attracting new clients with similar attributes.

To grow, you need to move out of your comfort zone and start gearing your marketing and sales efforts toward your ideal audience. This includes, as we mentioned above, expanding your reach through strategic professional relationships. Some advisors may find this intimidating, which is understandable. It can be uncomfortable trying to break into a niche with a new group of well-established professionals—but pushing past those feelings of uncomfortableness is what will allow you to grow.

It can also require you to step back and reevaluate your firm’s operations through a critical lens. Do you have the resources and capabilities necessary to serve a higher net-worth client? If not, what’s your plan for obtaining those? Are your operations and team running efficiently enough to shift into a new target market, or do you need to establish better systems and processes first? These truths can be uncomfortable to unpack, but it’s necessary to address them head-on if you wish to scale effectively by moving upmarket.

Challenge #3: You’re Busy Serving Your Current Clients

Making big changes requires time and commitment.

If you’re already stretched thin with your day-to-day operations, you may find it challenging to carve out more time for rethinking your marketing strategy, nurturing new professional relationships, and otherwise working to attract a new clientele.

Once you do start bringing on new clients with a higher net worth, you may find that they require more personal attention than you’re used to giving. Again, you’re going to have to strike a balance between addressing your old clients’ ongoing needs and onboarding new clients who require more of your time.

Challenge #4: The Higher the Net Worth, the More Competition

Keep in mind, that you’re not the only one interested in moving upmarket—other advisors have similar goals. The higher the net worth you pursue, the smaller the pool of potential clients becomes. When you’re casting a smaller net, it becomes inherently more difficult to land your ideal client.

It can be especially intimidating going up against other advisors who are well-established within the ultra-high-net-worth niche that you’re working toward. This challenge can be further emphasized if you don’t yet have the resources necessary to address a higher net worth individual’s complex concerns—which can be a real, competitive edge for some advisors.

Overcoming These Challenges for a Successful Transition

If you’re looking to move upmarket, you’ll need to consider and address these four challenges carefully.

The encouraging news is, your success depends greatly on your mindset and willingness to commit to your goal. If you’re able to refocus your priorities, streamline your operations, and make strategic adjustments to how you work, then you should have no problem conquering the challenges shared above.

If you’re ready to supercharge your growth goals and attract your ideal clients, the Elite Advisor Success System™ can help. Through comprehensive training, you’ll get everything you need to break production plateaus, serve more clients, make more money, and have more time freedom. Reach out to our team to learn more about the Elite Advisor Program today.