Ep 138: Leveraging A Media PR Strategy To Attract Ultra-High-Income (Millennial) Clients with Douglas Boneparth
Aug 20, 2019
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Douglas Boneparth, founder of Bone Fide Wealth, focuses on ultra-high-income millennials and shares his journey transitioning from a traditional model to a media-driven strategy. He discusses the importance of relatability in financial planning, addressing unique challenges like student debt. Douglas highlights innovative insurance solutions, the advantages of the RIA model, and the delicate balance between professional growth and personal life. His insights are invaluable for young advisors looking to connect with a younger demographic in today's financial landscape.
Douglas Boneparth transitioned from serving affluent retirees to targeting ultra-high-income millennials, addressing their unique financial challenges and needs.
His firm employs a hybrid fee structure that aligns with millennials' financial situations, promoting tailored advice without upfront pressure.
Boneparth's media-driven marketing strategy focuses on building credibility through visibility in high-profile outlets and engagement on social media.
Creating authentic relationships based on shared experiences enhances client loyalty, offering a holistic approach to both financial and emotional needs.
Deep dives
Targeting High-Income Millennials
Douglas Boneparth shifted his focus from serving affluent retirees to working with ultra-high-income millennials, primarily those earning between half a million to a million dollars annually. This strategic choice arose from recognizing the unique financial challenges faced by this demographic, particularly around managing substantial student loan debt as they enter high-income careers. By leveraging relatability and shared experiences, Boneparth has been able to resonate with younger clients who often encounter the complexities of wealth accumulation intertwined with personal growth. This targeted approach has not only differentiated his practice but also cemented his brand within a niche that has become increasingly relevant in today's economy.
Unique Fee Structure
Boneparth’s firm employs a unique fee structure that combines both assets under management (AUM) fees and a flat annual planning fee that ranges from $2,000 to $10,000. This model allows clients with higher incomes to quickly meet asset minimums, thus waiving the planning fee once they surpass half a million dollars in managed assets. By prioritizing financial planning as the core service, he ensures that younger clients can receive tailored advice without the immediate pressure of substantial upfront investment costs. This approach not only aligns with the financial situations of his millennial clients but also reflects a commitment to providing value-driven services.
Media-Driven Marketing Strategy
Boneparth has effectively utilized a media-driven marketing strategy to attract clients, emphasizing the importance of building credibility through appearances on various platforms. By securing features and quotes in high-profile media outlets, he has been able to cultivate an image of expertise that resonates with his target demographic. The strategy is complemented by active engagement on social media and the creation of substantial content that speaks directly to the financial challenges faced by millennials. This comprehensive approach ensures that potential clients arrive already convinced of his credibility, significantly enhancing the chances of conversion.
Establishing Client Relationships
A key aspect of Boneparth's success is his ability to create authentic relationships with clients, rooted in shared experiences and understanding. He emphasizes the importance of relatability in the advisory process, which allows him to address clients' emotional challenges alongside their financial needs. By positioning himself as someone who comprehends the complexities of millennial life, he helps clients navigate not just their investments, but broader life changes as well. This rapport fosters loyalty and trust, leading to stronger client retention and referral opportunities.
Shifting to an Independent RIA Model
Boneparth made a strategic transition from being affiliated with a broker-dealer to establishing his own Registered Investment Advisor (RIA) firm. He identified the limitations imposed by the traditional broker-dealer model, particularly regarding compliance and marketing restrictions, which hindered his ability to innovate and grow. By moving to an independent RIA model, he has gained greater control over his business operations, marketing strategies, and client engagement processes. This shift reflects a broader trend among advisors seeking to enhance service quality and operational flexibility.
Embracing Financial Education
Recognizing the importance of financial literacy, Boneparth aims to empower his clients through comprehensive education and resources. He believes that providing valuable content, whether through a blog, webinars, or books, plays a crucial role in enhancing the financial planning experience for clients. By positioning himself as a resource for financial knowledge, he strengthens his brand and attracts clients who are eager to learn and engage actively with their financial futures. This dual focus on service and education helps differentiate his practice in a competitive landscape.
Learning from Legacy Clients
Boneparth acknowledges the value of legacy clients from earlier in his career, using these relationships as a learning experience while transitioning to a millennial-focused practice. He understands that maintaining relationships with older clients helps to cultivate a diverse client base, which can serve as a financial anchor during transitions. Nonetheless, he also recognizes the challenge of evolving client dynamics as he carves out a niche in the millennial market. This delicate balance emphasizes the importance of adaptability and continuous learning in his practice.
Defining Success Beyond Revenue
For Boneparth, success transcends financial metrics; it encompasses family happiness and personal satisfaction. He articulates a vision of financial independence that allows him to support his family and provide them with opportunities he values. The emphasis on work-life balance aligns with his goal of being present in his daughters' lives while also pursuing a fulfilling career. This holistic perspective on success as a blend of professional achievement and personal fulfillment resonates strongly with his millennial client base, who often prioritize similar values.
Douglas Boneparth is the founder of Bone Fide Wealth, an independent RIA that manages nearly $80 million of assets under management. After starting out in a fairly traditional broker-dealer model serving affluent retirees, Douglas decided to transition and focus on high-income millennials. Today he joins the show to discuss why he chose to invest in younger clients and how he has been able to successfully market to and attract such high-income millennials.
Listen in as he shares why he decided to stop implementing term insurance policies, as well as what he sees as the key to being able to work with his younger clients. You’ll get his take on why the industry tends to have a difficult time attracting millennials, the value of making things easier for clients, and what younger advisors should know as they are looking to get started in the industry.
