Masterclass: Setting up your advice practice for HNW clients

This document is for general use. Modification of content is prohibited unless you have Netwealth’s express prior written consent.

Before we get started This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.

Housekeeping

1 CPD Available

Webinar is being recorded

• Must respond to a postevent survey emailed to you

• Slides will be sent to you after the webinar via email

Enter your questions in the meeting chat section of Teams webinar • We will get to them either during or at the end of the webinar

Affluent 30

45

Emerging Mass Market Population 5.3m Wealth1.1t Age 30

Age

Mass Market

Meet the Advisable Australian by age and wealth

Established Affluent Population 2.8m Wealth 4.1t Age 60

Emerging Affluent Population 1.9m Wealth1.8t Age 30

60

75

Established Mass Market Population 8.0m Wealth 2.3t Age 61

Today’s speaker • Dean Holmes • Founder of the Wealth Network and TWN Partners • Dean helps advisers start, grow and evolve hyperefficient financial planning businesses

6

| netwealth

Welcome

G’day – Dean Holmes

The Wealth Network

Our Client Partners

Time for a 30” stretch

Let’s start by painting a picture of our industry today

Our Industry is facing a demand vs supply challenge

Source: Netwealth. The Advisable Australian Report 2021

Defining a profitable business

1 advisor $1m Revenue 40% Profit

It starts with your business strategy

1 3

2

Tools and Frameworks Value Creation

Value Capture

Marketing Plan

Business Ecosystem

• Product

• Pricing

• Analysis

• Focus

• Extras

• Customer

• Planning

• Leverage

• Measurement

• Quality

• Value Pyramid • Quality is key

Loyalty/Advocacy

Time for a 30” stretch

Tool 1 – Client Value Creation and Value Capture

Client Ecosystem – Established Affluent

Value Creation and Value Capture

Value Creation

Your Products and Services

Examples: Advice, Saving client time, reducing their anxiety, etc

Value Capture

How you benefit from the value created Examples: Fees, Trust, Positive client feedback, retention, referrals, growth

The Value Pyramid Fundamentals - Profit

What valueFundamentals will you create- for these clients?

Profit

Let’s apply this to our Established Affluent Clients Cash Flow Advice

Tax

Private Schools

‘ESG Invest

Private Assets

Client Needs Existing Advisers

Business Advice

Legal Aged Care

Property Reno

Value Creation - SOA

•

Our key product offering is the Statement of Advice.

• •

58% prefer F2F for important advice related matters.

Top 2 aspects of advice offer is quality and breadth of services.

• •

•

Make the Statement of Advice FREE. Create Value by explaining the process and outcomes Move into the life changing category

Value Capture - Price

• We just charge 1% of FUM

• •

Over 70% want to pay fixed fees 20% want to pay on an ad-hoc basis

• • • •

Fixed annual fees renewed annually What Value add services can you provide?

Capturing value beyond fees (Retention Referrals) Think holistically about price

How will you meet the needs of your clients?

Value Creation

Your Products and Services

Examples: Advice, Saving client time, reducing their anxiety etc

Value Capture

How you benefit from the value created Examples: Fees, Trust, Positive client feedback, retention, referrals, growth

Value Pyramid

Time for a 30” stretch

Tool 2 – Marketing Plan

Client Ecosystem – Established Affluent

Marketing Plan Framework ANALYSIS

PLANNING

MEASUREMENT

CLIENT

Client Avatar

Retention

Competition

The 4 P’s Product, Price, Promotion and Place.

Acquisition

Collaborators Context Company

Source: Adapted from Harvard Business School, Framework for Marketing Strategy Formation, 2019

Profits

Consider this scenario

Time for a 30” stretch

Tool 3 – Business Ecosystem

Business Ecosystem

From Financial Planner to Business Owner

Defining and Designing a Business Ecosystem Identify all elements of your client needs Identify all elements of your business needs Create a relationship and shared understanding of your business with all partners

Building and Growing your Business Focus

Leverage

Outcomes

• Business Strategy

• Expertise of Partners

• Confidence

• Marketing

• Existing Processes

• High Quality work

• Business Development

• Shared knowledge

• Team Redundancy

• Client Relationships

• Cost Savings

• High performance

• Operational Cadence

• Superior Service

Building ONE Team

Let’s Review the 3 Tools Value Creation

Value Capture

Marketing Plan

Business Ecosystem

• Product

• Pricing

• Analysis

• Focus

• Extras

• Customer

• Planning

• Leverage

• Measurement

• Quality

• Value Pyramid • Quality is key

Loyalty/Advocacy

3 Steps you can do in an afternoon

FIND the VALUE you can create for clients using the Value Pyramid

BUILD your Marketing Plan and COMMUNICATE your VALUE clearly

IDENTIFY gaps in your BUSINESS ECOSYSTEM & solutions to fill them.

Any last questions?

Your Advisable Australian Resources Your Advisable Australian Resources www.netwealth.com.au/web/insights/the-advisable-australian Read the full report The Established Affluent 2022 Report

The 6 Dimensions of the Advisable Australian Discover the dimensions

Read the full report The Emerging Affluent report

Advisable Australian Masterclass Series – Coming up Thu 17th Feb at 1pm Setting up your advice practice for HNW clients Tue 22nd Feb at 1pm Building strategic relationships for a pipeline of new, affluent clients Thu 24th Feb at 1pm – Super, SMSFs and technical strategies for HNW clients

Disclaimer This document is for general use.

This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.