Subscribe to Understanding Your Super-Affluent Buyer of Fractional Ownership
I came across this press release and found it interesting for a few different reasons:
- Knowing your affluent buyer is the KEY to successfully selling to them
- The affluent are risk takers and don’t pull back in a recession
- Understanding buying motivations helps you sell
- Even though this study was for financial advisors, you can use this information to help you sell
PHILADELPHIA, April 10 /PRNewswire-FirstCall/ — An overwhelming number of affluent Americans earned their wealth and are more likely to feel secure during challenging economic times compared to peers who inherited their money, according to findings by PNC Wealth Management, a member of The PNC Financial Services Group, Inc.
Meanwhile, 27 percent of heirs expressed concern about a recession. Yet, 10 percent fewer — 67 percent — expressed confidence about control of their finances in the future.The earners also have a higher risk tolerance than heirs. Thirty-nine percent of earners rate themselves as moderate to risky investors compared with 21 percent of heirs.”Among the earned wealthy there is a strong correlation between their willingness to take risks and confidence that they can recover from a major negative financial event,” said Thomas P. Melcher, executive vice president and managing director of Hawthorn, PNC Wealth Management’s ultra high net worth division. “Those who inherited their wealth often view themselves as stewards for future generations. As a result, they tend to be more conservative in their approach to investing.
“By understanding the psychology of wealth, wealth managers are better able to deliver holistic advice, the success of which is measured both through investment returns and appreciation for the lifestyle that wealth allows,” he added.
NOW–how can you use this information to help you market and sell to the affluent?
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April 27th, 2008 at 2:23 pm
How can I use this information? My products are high end high quality nutritional. My business is distribution. Most of the people who are very successful with our company understand wealth accumulation, management, streams-of-income, and the concepts of yields on investments. They may not understand or have a positive belief in the multi level marketing template BUT can understand the layering of corporate structures in distribution.
When I market the business I seek people who understand what I just posted. The information in your post, Susan, tells me that self-made people understand the value of time investment - work - and are willing to invest more time if necessary to get what they want. Also, they are confident they can do what they’ve done again.
Conversly, those who have inherited wealth have less confidence than those who acquired it and may not be as high probability prospect as those who built it.