Avoid High Minimums. Target a Niche Instead!

The rational for Higher Minimums is unclear and mostly around creating a cache that adds no real value. Want to grow fast, drop the High Minimums, and target a Niche!

Carving out a certain niche to operate in can be a highly lucrative endeavor, yet when asked about the composition of their practice, many Advisors would likely reveal that they have a mix, likely across each of the groups listed below. But many would also add that they are striving to move up market and intend to institute higher minimum portfolio sizes as they grow.

The concept of moving up market is some what confusing, what does that really mean anyway. For many, moving up market is effectively implementing higher portfolio minimums across their practice.

But what’s the rational for having higher minimums? Many would suggest that having higher minimums lead to higher quality clients, lower numbers of clients and potentially higher AUM, in reality this is approach is quite misleading.

Who are your ideal clients & What is the profile of the client base you wish to grow?

• Young professionals with less than $500k households

• The mass affluent family with $500k of household assets

• Profess…