The concept of diversification is something that is deeply engrained in the very DNA of financial advisors. Diversification can be defined as a method for reducing risk by spreading investments across different industries and financial vehicles. It is considered a key principle in helping clients achieve their financial goals while simultaneously minimizing their risk.

You probably preach diversification to clients every day and utilize it in your own portfolio as well. However, when it comes to your book of business, how well are you diversified? Many advisors stick with and prospect exclusively for large, well-established blue-chip clients. Although they recognize the importance of reaching the next generation – their “emerging market” clients – very few have any concrete plan for doing so.

In portfolios, emerging markets are considered riskier investments, but you invest in them because of their potential for explosive growth. The same can be said for “emerging market” clients. Today’s emerging market clients are Millennials and they will become tomorrow’s blue-chip clients.

It doesn’t matter how good of an advisor you are, how amazing your service model is, or even how relatable you are if no one knows you exist.

To advisors, Millennials can be a difficult niche. They are perceived as not having any money and as that odd group that prefers technology to human contact. This is not entirely true and they tend to be largely misunderstood by the financial community.

The Millennial generation is one of contrasts. Many attempted to enter the workforce during the Great Recession, carrying massive student loan debt and were forced into a catch-up cycle before their careers ever got off the ground. After a slow start, just as they began to gain some traction in their careers, the pandemic hit with many jobs being eliminated as companies searched for every way possible to cut costs. 

In spite of their slow start, there are currently 618,000 Millennial millionaires based on a recent study conducted by Coldwell Banker. The group as a whole has a dominant presence in the fast-growing technology sector and they’ve grown up in the age of the start-up. They are joining the ranks of the high net-worth in larger numbers every day and at a relatively young age. In the coming years, they are also expected to become the beneficiaries of the largest wealth transfer in history and inherit $68 Trillion from their baby boomer parents by 2030.

And speaking of baby boomers – a 2019 J.D. Power study reported that the average age of a financial advisor in the U.S. is about 55 years old, with roughly 20% of all advisors aged 65 or older. So how does a 55-65 year old advisor reach this vastly underserved emerging market? The answer may surprise you.

Prospecting By The Book

Just like in any other market niche, the biggest obstacle to your success is not the highly competitive nature of the business. It’s not the market, lack of sales support or in this case, even Millennials’ infatuation with robo-advisors. Your biggest problem – the one thing you must overcome to reach your desired level of success with this group or any other is obscurity. It doesn’t matter how good of an advisor you are, how amazing your service model is, or even how relatable you are if no one knows you exist.

In our age of technology, there are countless methods and combinations of methods available to you for reaching your desired market. However, nothing boosts credibility faster than authoring a book. As soon as someone sees your name on the cover, it instantly sets you apart from the competition – establishing you as the expert and in some cases, even a bit of a celebrity.

Surprisingly, a book can also be one of the best methods there is for reaching Millennials. Turns out – Millennials are voracious readers – reading an average of 5 books a year compared to the average American who only reads four. What’s even more surprising is they prefer print books over digital ones. According to recent research by Expert Editor, 72% of Millennials reported reading a print book in the previous year compared to only 32% an e-book and only 16% an audible book.[1]

Although they do read for pleasure, according to those interviewed, they primarily read for information. 92% said they read to research specific topics that they’re interested in.[2] They seek out practical information that they can use in business and in their careers. How-to books are extremely popular within this group and they place great value on authenticity. They want to know that you’ve applied the concepts in your book and they work in real life.

Growing up in a digital world, the group as a whole tends to be visually-oriented and are “scanners” by nature. The content should be presented in a format that is easily digestible. Shorter chapters with bullet points, check lists, charts and infographics are most appealing to them.

Content is king with Millennials and if they like the information you’ve presented in your book and the way you’ve presented it, they won’t hesitate to share it. Millennials enjoy sharing their likes and dislikes via word-of-mouth, social media and discussions in other online communities. In fact, they view sharing content and their opinions about a book as part of the reading experience. Your book has the potential for exponential traction within the demographic.

Content Always Wins

 One of the first rules of writing any book is to know who you’re writing for. Millennials’ attitudes concerning wealth are very different than previous generations. If you’re considering writing a book for this group, it’s important that you understand what they value when it comes to wealth management.

Most advisors consider maximizing wealth in client portfolios a primary objective. However, many Millennials don’t consider wealth accumulation a goal in and of itself. What’s most important to them is building a portfolio of investments that are in line with their values. They’re searching for advisors who not only understand this, but have the knowledge and expertise to actually do it.

They want to be educated on the environmental and social impacts of their actions and investments. They want to know things like how much of their wealth can they give away to the causes most important to them without jeopardizing their family’s future. These are far from traditional financial planning conversations. What they’re finding are advisors who often trivialize these factors and are ill-equipped to make meaningful sustainable investment comparisons and recommendations.

These are the kind of topics that will catch their attention and once you’ve done that, transparency will keep it. Millennials are cost conscious and considering the economic ups and downs that they’ve experienced in their young lives thus far, it’s to be expected. They want pricing models that are candidly discussed and they can clearly understand.

 

It’s important to also recognize that most Millennials favor a hybrid model. Although they grew up with an i-phone in their hand, they recognize the value of working with a knowledgeable person who “gets” them. Ideally, they want the two to harmoniously work together.

Write a book that covers the valuable information they’re searching for and have had difficulty finding. Write a book that proves that you understand them and you will win their hearts. You’ll be on your way to developing an “emerging market” niche that is loyal and loves to share. This can be an ideal combination for both your book and your business. 

To Write or Not To Write

Next to your decision to write a book, the most important decision you’ll make is whether to write it yourself or hire a ghostwriter. This is someone who writes the book for you but doesn’t take the credit. Your name is on the cover and the book belongs to you.

You could write the book yourself but here’s the million-dollar question. Will you? Most advisors simply do not have the time or self-discipline to sit down and write a book. This is a prevalent problem among busy professionals and one that’s easily solved by a ghostwriter.

Ghostwriting is a far more common practice than you may realize. Madeleine Morel, a literary agent for ghostwriters estimates that up to 60% of all nonfiction books on the bestseller list at any given time are ghostwritten. 

The biggest advantage to hiring a ghostwriter is the book will actually get written. They say everyone has a book in them, but only a fraction are ever written, and an even smaller percentage published. A good ghostwriter can write a quality book faster and with less stress than you could ever do yourself.

Every ghostwriter is different, just as every advisor is different. Each will have their own unique process for researching and for extracting the information out of your brain and onto the page. The relationship between a financial advisor and a ghostwriter develops into a close one so it’s important to find one that fits you.

Millennials know what they’re looking for from the wealth management industry but are having difficulty finding it. The “emerging market” of Millennial wealth management is growing rapidly and remains underserved. One of the most effective ways to break into this “emerging market” is by writing a book that covers what’s most important to them. Remember they read a lot and they share a lot. That can become a very profitable combination for both your business and your book.

 

[1]Brendan Brown,  “The Surprising Reading Habits of Millennials,” The Expert Editor, March 23, 2019, https://experteditor.com.au/blog/infographic-surprising-reading-habits-millennials/.

[2] Ibid.