Most agents and advisors don't have expense accounts – entertaining comes out of their own pocket. Those embracing it see it as investing in their business. They are investing money to build a relationship. Here are some scenarios that show how it can work.

Example #1 – The Retiring Client

As an agent or advisor, you seek a certain type of prospect. Invite a client who is retiring out to lunch to celebrate their upcoming retirement. Ask them to bring along a couple of office friends who will be retiring in the next twelve months.

Over lunch, toast your retiring client. Ask what they will do in the first day, week and month of their retirement. As they tell their plans, they will likely provide an unsolicited testimonial explaining how you helped prepare them for retirement. Those soon-to-be retiring office friends start to think: “I need that kind of help too.”

Example #2 – The Retiring Executive

A financial planner who has developed a niche with senior executives in the pharmaceutical industry wants to congratulate a client on their upcoming retirement. The planner explains they want to throw a party to celebrate. They offer to pay for a 20-person event at a restaurant or hire caterers to do it at the client's home.

The executive invites their “C suite friends” and the planner and team attend as part of the celebration. As guests thank the executive for inviting them, the executive explains the planner threw the party, “You should be thanking them.” The planner meets fellow senior executives it would be difficult to connect with otherwise.

Example #3 – The Charity Gala

You serve on the board of a local charity. They hold a gala. Board members are expected to buy a table. Who will you invite?

Some agents and advisors invite clients and prospects who share the same interest in opera or art. It's a glamorous event. Prospects see people they know at other tables. The agent introduces them around. The prospects find they share interests in common with the agent. A relationship develops.

Example #4 – Lunch after Golf

An insurance professional relocating to a new area was advised to join the best golf club and buy a new luxury car. When he balked, his friend explained perception is important. If you drive up to the most expensive club in an expensive car, people assume you are a successful insurance broker.

He would play golf a few times a week. Sometimes it would be with his accountant and a couple of their clients. Other times, it was three Chamber of Commerce members. The guests had to be business owners.

Playing a course they couldn't access otherwise was a big draw. The broker would buy lunch afterwards. He would say: “Can I call next week and schedule an appointment? I have some ideas I would like to share. I think I can save you money.” The invitation to play the best course and being invited for lunch afterwards creates an informal obligation to grant the appointment.

Entertaining costs money, but it can also lead to business. You need to have a plan spelling out how entertaining someone should turn a prospect into a client.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon.

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