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Dare to buy differently | Finance and Investment



I share with you four different ways to proceed with the purchase of a block of business.

  1. Purchase of 20% – Pareto Law

Each advisor has different types of clients: family, corporate, professional, etc. In the majority of cases, the advisor develops a greater proximity with his most significant clients. He often knows them better than his smaller customers. So the concept is to buy only the highest potential customers, or those who best fit your current segment.

This way of doing things has been tested by a successful advisor in my network. I will explain a little about the profile of the adviser in question. He works in a corporate market and does not seek to have a large clientele. He would ideally like to add customers who are similar to the customer base he has already built.

The adviser in question thus bought only the corporate clients of the block of business and offered a little more for each of these clients. The rest of the clientele was sold to another advisor. This way of proceeding allows you to ensure that you only have the cream of the crop of customers, without getting too dizzy with a high number of customers who do not really correspond to what you are looking for.

He quickly made a profit from his transaction, because he offered more advanced concepts to his new clients, and the sales advisor made sure to make a suitable transition with the new advisor.

The advisor was able to grow his customer base through acquisition without distorting his own current customer base.

  1. Purchase in partnership

In most cases, the experienced advisor has worked very hard to build their clientele. He built his practice one client at a time. He also sometimes has clients who are located all over Quebec.

Today, we have the opportunity to grow faster, by acquisition, but only if we make sure we do it the right way. It is not always a good idea to scatter in regions far from our own, even if technologies allow us to have access everywhere without moving. In fact, not all clients will agree to use the technological tools available to meet with you.

The concept of buying in partnership is to buy a block of business with a colleague from another region and to separate the customers according to their proximity. This type of concept is easier to execute for clients mainly in investment.

Each advisor pays for what they keep and the purchase price is split between buyers. This allows you to make a purchase that better suits your region. Plus, it gives you access to an advisor to discuss the transition with, as well as share your respective knowledge and strategies.

  1. Selective buying – choose your advisor

You probably have an advisor in your network whom you admire, who really has the type of clientele you would like to serve one day, but who is not ready to sell just yet.

Be the first to let them know you are interested in their customers. Tell him your intentions and repeat it at least once a year. Sometimes people don’t dare to ask for fear of being told no, so be proactive, always be ahead.

That’s not to say things will automatically work out the way you hoped, but by showing interest, you increase your chances of it happening. Maybe your show of interest will even push him to speed up his sales process or to implement the last concept, that of the gradual purchase.

  1. Gradual purchase

Gradual buying is quite simple, it consists in buying a clientele but in a gradual way. This concept is often used to get the advisor to have the interest to sell. This allows you to begin working with the Experienced Advisor to see your potential.

For this type of concept, it is important to indicate in the contract that you have the first right of inspection for the rest of the block of business. If you can, you can also predetermine the delays of the next transactions to avoid that the complete transaction is too long.

Hoping that these concepts will help you in a future customer purchase. Great deal !

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