Making your mark in a crowded world

For the average planner, writing a book on the philosophy of financial planning wouldn’t be the first thing they would do to make an impression on today’s clients.

But that is exactly what Latitude Financial Partners managing director Johnathan Bonnett has done to differentiate himself in what seems an increasingly clichéd marketing environment.

With seminars, newsletters and lunches becoming the norm, financial planners like Bonnett are increasingly seeking their own individual marketing strategy to drive that most lucrative source of new business — referrals.

Bonnett’s book, which he says deals with topics like budgeting, cash flows, risk planning and general wisdom about financial security, has helped generate considerable business.

“I get e-mails every day now. It lends to your credibility,” he says.

Since opening his business on Queensland’s Gold Coast in August 2002, Bonnett has been a firm believer in getting involved in the community to establish networks.

He is involved in charity work, which includes the Red Shield Appeal for the Red Cross, the annual Leukemia Foundation appeal as well as RSPCA fundraising.

“I have genuine motives — I don’t overtly exploit it — but it is so that people get to know me and see me as living what I preach about ethics and balance,” he says.

Bonnett’s belief in networking has led him to join a number of leisure groups, including golfing and surfing groups.

He is also a member of business groups on the Gold Coast such as the Institute of Business Leaders where he meets other service professionals such as accountants and solicitors on a regular basis.

“They have bi-monthly lunches, cocktail events and a monthly breakfast where you get to meet the senior people in other businesses. It’s easier than the cold calling slog that a lot of other planners go through,” Bonnett says.

Though only opening the business eight months ago, Bonnett has managed to grow his funds under advice to $10 million using these referral generating strategies targeting high-net-worth clients.

Although Bonnett is a sole practitioner, the need to innovate has also led him to take the unusual step of hiring a public relations consultant who ensures his client communications are of a consistently high standard.

He says that while he uses PR in tandem with other regular marketing techniques such as newsletters and regular letters to clients, the main channel for generating referrals is networking.

“Everything else falls into place if you do it. You start to get referrals, you are not always running around looking for them, and you can build your business in a controlled way,” he says.

Bonnett, who came fromPerpetual Private Clientsbefore starting his business, says that although he has used seminars in the past, they are overused in the market.

“There are too many seminars for people looking for information and I am not sure that people really want them. Some people will seek them out, but I’m not sure there is a cost-benefit return on putting one on,” he says.

Bonnett says if he does use seminars in the future, he will charge a “fair whack” for people to attend and give them “real value”.

However,Tynan Mackenziemanaging director Tony Fenning says seminars play an important part in generating referrals within his business.

“We hold free information seminars for companies and governments on a no-obligation basis,” he says.

Fenning says they are important to get to the type of client the business is after, typically senior executives in major companies or government departments who are nearing retirement.

Though seminars are one technique, Fenning says referrals are generated through a basic networking strategy.

Tynan Mackenzie traditionally targets opinion-leading and well respected people within companies who have retired or are planning to retire.

Fenning says that on becoming a client, they often “become converts” to the business and want to spread the word within their network.

“If you go to one of our client conferences it is like a reunion,” he says.

This referral-generating strategy has enabled the business to build over $1 billion in funds since 1994, with about half of these sourced in the last three years.

An important arm of Tynan Mackenzie’s marketing strategy is attracting quality planners to the business.

“We very actively go and sound out the market and spend lots of time talking to people in each location we move into,” Fenning says.

This is followed with the provision of a detailed information memorandum to potential candidates and an extended interview process allowing them to meet with multiple senior people within the business.

Fenning says advertising and branding is inferior to referrals because he believes a business will end up with the top 20 per cent of its clients providing 80 per cent of the business if it casts a wide net.

Financial planning dealer Bridgeport Group sources over 80 per cent of its business through referrals and does not look to advertise.

Bridgeport Group managing director Gary Scallon says the marketing of the group is focused on interactive in-house entertainment for existing clients, which leads to referrals.

This involves each of the six divisions within the group hosting a client breakfast or lunch four times a year to engage with their clients and introduce them to other areas and people within the business.

“We bring people into our home to reinforce trust and demonstrate that we have some form of substance and infrastructure,” Scallon says.

Bridgeport also conducts specific seminars for clients three times a year, seeing this regular client contact as an effective marketing tool.

The relationships the business builds with accounting practices is also an angle being pursued, with a dedicated person employed to maintain and grow them.

Bridgeport currently has 12 associations with these practices and is looking to grow that to 24 within 18 months by showing the services they could provide to the clients of these businesses.

Scallon also believes the monthly client newsletter, which covers a generic view of the market, developments in Bridgeport’s services and a profile of a company employee is an important communications and marketing tool.