Networking with the Affluent

343 Pages·2016·1.12 MB·English

by  Thomas J. Stanley

Networking with the Affluent

Thomas J. Stanley, Ph.D.
Copyright

Networking with the Affluent and their Advisors
Copyright © 1993 by Thomas J. Stanley, Ph.D.

Cover art to the electronic edition copyright © 2012 by RosettaBooks, LLC.

All rights reserved. No part of this book may be used or reproduced in any form
or by any electronic or mechanical means, including information storage and
retrieval systems, without permission in writing from the publisher, except by a
reviewer who may quote brief passages in a review.

Electronic edition published 2012 by RosettaBooks, LLC, New York.
ISBN Mobipocket edition: 9780795325977
For Janet, Sarah, Brad, and Molly
PREFACE

Why write a book about networking with the affluent and their advisors? The top
1 percent of the households in America account for nearly 40 percent of the
wealth. Traditional methods of marketing, selling as well as advertising, are
often ineffective determinants of the patronage behavior of the affluent. The
affluent respondents whom I have interviewed report that interpersonal
endorsements (also known as “word-of-mouth endorsements”) were most
influential in their decisions to patronize a variety of product and service
providers.

Interestingly, some people, including many affluent individuals, serve as
patronage opinion leaders. They exert considerable influence in this context.
Why? Because they are viewed as having high credibility and intellect in judging
the quality and character of those who intend to supply the affluent. Cultivating
the endorsements of these opinion leaders is a very productive way to address
the affluent market.

Why do opinion leaders go out of their way to endorse one offering but not
another? Readers, you may be thinking that you deserve all the endorsements.
Why? You feel that you are number one! You contend that your brand of
product and service is the very best. After all, you graduated near the top of your
university class. However, such attributes as good intellect and high-quality
products and services are basic requirements. Most of the people who target the
affluent must have these attributes. But these are core features, and it takes
additional features to succeed in this market. The possession of these additional
features often explains why some of your competitors enjoy higher sales volume
than you. Those who have no Phi Beta Kappa pins may have two or three times
the number of customers or clients than you have because, unlike you, they have
the endorsements of the key patronage opinion leaders who influence the
affluent.

More often than not, people endorse those who do more for them than provide
conventional or core products or services. There are several methods of
encouraging patronage opinion leaders to endorse one’s offerings. These
methods all come under the heading of networking. There are eight dimensions
or faces of networking with the affluent and their advisors.

The most powerful way to network is to enhance the revenue of opinion
leaders. Realize that before receiving business-related endorsements, you must
first “send business.” Revenue enhancers are more likely to gain important
referrals than are those who merely tell people about their product and even
about their Phi Beta Kappa pin. In fact, not one of the extraordinary networkers
profiled in this book graduated at the top of his or her college class!

If you are the best or nearly the best in your field, you must take the initiative
of telling key opinion leaders. You must cultivate their endorsements. But if
your business revenue is not at the top for those in your field, don’t despair.
There is always hope. Encourage the market and its influencers to respond to
your offering in a positive way. Network. By doing so, you can become a
success in a small fraction of the time that is often required otherwise.

Without important endorsements, it is difficult to succeed in targeting the
affluent and their advisors. Perhaps an analogy from our nation’s military history
can illuminate this point. Many historians feel that John Paul Jones was the
finest officer who ever captained a U.S. naval ship. His extraordinary talents
were well documented even prior to the Revolutionary War. On the day that the
Continental Navy was formed, political opinion leaders (members of the
Continental Congress) ranked each captain in our small navy. The rankings were
supposed to be based on the so-called objective qualities of naval officers.
Where did Captain Jones, the father of our navy, rank among the 24 captains?

In reality, the rankings were not based on objective criteria. They were based
on the principle called “localitis.” The 17 captains ranked ahead of John Paul
Jones were all first endorsed by their respective “hometown political opinion
leaders.” The members of the Continental Congress received no such
endorsements on behalf of Jones. According to his biographer, Samuel E.
Morison, Jones “was the maverick of the navy,” with no influence network, no
support, no endorsements from shipbuilders, family, or community upon which
to lean. Of course, Jones never spent much time or energy in attempts to
influence the influential. He assumed, incorrectly, that those with the best core
qualities would always be ranked at the top of their respective cohorts.
Therefore, despite his talent, he was assigned to captain a small sloop, regarded
as the “18th-best ship” in the U.S. Navy. All of those who were ranked above
him were assigned larger/better vessels.

Readers, where do you and your offerings rank in the eyes of important
patronage opinion leaders? Encourage these leaders to rank you high. Cultivate
their endorsements. Become a vital part of their influence networks. Without
their support, you may be assigned a small piece of the affluent market.
ACKNOWLEDGMENTS

The information contained in this book was gathered from conversations,
interviews, and the case studies of hundreds of marketing, sales, and new
business development professionals who network with the affluent and their
advisors. Most successful networkers are very unselfish people. They are
determined to do more for clients, prospective clients, and patronage opinion
leaders than merely provide a core offering. Their willingness to share is greatly
appreciated.

I am indebted to my wife, Janet, for her honest evaluations of case studies and
for her patient guidance and assistance in the development of the manuscript.

Special thanks are accorded to Ruth Tiller for her extraordinary help in editing
and word processing.

Finally, I wish to acknowledge the contribution of Sarah and Brad Stanley,
who always gave “their candid insights about the true value of countless
networking concepts and case scenarios.”

Thomas J. Stanley
Contents

1 INTRODUCTION

What Is Networking?

The Eight Faces of Networking

Face One: The Talent Scout

Face Two: The Revenue Enhancer

Face Three: The Advocate

Face Four: The Mentor

Face Five: The Publicist

Face Six: The Family Advisor

Face Seven: The Purchasing Agent

Face Eight: The Loan Broker

2 THE TALENT SCOUT

Nelson Paramus Is a Supplier of Talent

The Anatomy of Wealth

Synergy within the Client Base

Nelson’s Network

Endorsed by a Leader

The Need of the Affluent

The Question of When

Recruiting Influential Writers

The Nelson Paramus Pro Forma Dialogue

Scouting Public Relations Talent

Influencing Influential Networkers

Identifying Top Suppliers
Multiple Sales

Summary: Key Steps in Becoming a Talent Scout

3 THE REVENUE ENHANCER

Father Fred Markets More than Construction Equipment

An Information Conduit and Revenue Enhancer

What Do Fund Raisers Really Need?

Enhance the Revenue of Clients and Their Children

Build a Network of Networks

Not in Father’s Footsteps

An Independent Study

This Author’s Suppliers/Revenue Enhancers

A Provocative Message to a Supplier

Beyond the Core

A Letter to an Apostle

Inoculate Your Clients against Competitors

A Letter from Number One

4 THE ADVOCATE

An Example of Doing More: The Letter of Letters

Dr. J. Conrad Peterbaum Is an Advocate of More than Fillings
and Extractions

Explaining Dr. Peterbaum’s Success

Implications for Followers of Dr. Peterbaum

The Important Concerns of Affinity Groups

Seeds of Support

The Advocate’s Evidence

An Interview with an Advocate in the Making

But Are They Your Advocates?