As an advisor, many of you would have been curious about how the rich and famous manage their money. You would have perhaps wondered what it takes to land these celebrity clients and deal with them. Read on to find out the challenges in acquiring celeb clients and how to deal with them once they are your clients.
People very often confuse wealth with fame. Financial advisors would wish to have celebrity clients in the hope of managing sizeable assets. But not all celebs are well off. So you ought to be doubly sure about the potential of the celebrity before you approach them. “With an entire ecosystem feeding on celebrity news and gossip, a lot of people get their 15 minutes of fame. With their expensive cars and clothes, they manage to create an image of success. However, I would say only 1 out of 10 celebrities in limelight has any decent net worth,” confides an IFA who has worked with many Bollywood folks.
Goddess Laxmi vs. Goddess Saraswati
Most talented celebrities are more inclined towards creative matters than financial matters. As one of India’s living legends, Pandit Hari Prasad Chaurasia told us,” Goddess Saraswati and Goddess Laxmi are in a constant state of strife.” As a result, many celebrities leave their financial affairs to a trusted family member, a close friend or a trusted CA. Very often, the financial advisor would end up dealing with this family member/friend/CA.
Building financial assets is not a priority
Another challenge that IFAs should be prepared for is that investing in financial assets may not be a priority for many celebrities. They usually prefer to set up life style businesses (a restaurant, night club, fashion store) or invest in property or businesses related to their work (production house). So you need to research about the celebs you wish to approach and provide a customized solution accordingly.
Difficult to reach
Access to celebs or their close circle is difficult. Also, approaching them directly and getting their appointment can be a herculean task. Thus, having a reference point might be necessary before you approach such a personality. Also, there are many advisors vying for their business. So be prepared with your own script as to why they should do business with you and not the other IFAs.
Focus on long term horizon
More than any other walk of life, success here is often short lived for most. So financial advisors will do well to advise them to have a long term approach so that the celebrity clients are able to maintain the same lifestyle if their fortune changes. “Every star is as good as his/her last film. Audience taste changes each season. So I tell my clients that they need to set aside something for their nest-egg,” says another Mumbai based wealth manager who has celebrity clients.
Build Trust
Celebrities go purely on trust factor. As with all your clients, you need to build a good rapport and trust with celebs and they need to have faith in you. Once the trust is established, they will be open to introducing you to their friends. Here, the level of service and honesty will determine your success.
Safeguard their privacy
Celebrities are public figure and people/fans are curious to know about them but there is a thin line between personal and professional maters. Celebs are very particular about their privacy. To maintain client secrecy, you may also to have to sign non-disclosure agreement with them. So flaunting a celebrity client might not be a good idea.
Servicing them can be a challenge
Celebrities are constantly on the move due to their work commitments. The lives of celebrities are uncertain and you may have to deal with last minute changes. Due to this uncertainty, you may have to meet them at odd times. Thus, once you have a celebrity client you may have to go that extra mile in servicing them.
Tact and discretion required
Celebrities are known for their high life and they like to splurge and maintain an extravagant lifestyle. Celebs may wish to buy a second house at an exotic location even if they would visit that house once in a blue moon. If they wish to fulfil this goal they may not be happy to hear a NO from you. So you have to be at your best to deal with such situations.
Summing up, you will need patience, perseverance and luck to crack open this market. In addition to business, rubbing shoulders with stars is an additional bonus!
Key Takeaways:
- Not all celebs are well off
- Find out the potential of the celebrity before you approach them
- Investing in financial assets may not be a priority for many celebrities
- Having a reference point might be necessary before you approach celebs
- Celebrities go purely on trust factor
