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2018 U.S.
MILLIONAIRE REPORT
info@wealthengine.com
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2018
Know Your Customer Every company, brand, and nonprofit organization is constantly striving to increase sales or donations. There is an unprecedented fragmentation of the HNW and UHNW audiences that is occurring, as wealth has spread across generations, and the number of millionaires has exploded. This has created a new challenge – and opportunity – for sales, marketing, and fundraising professionals to find, understand, and engage with people of all ages and stages of wealth.
Know Your Millionaire THERE ARE APPROXIMATELY 16 MILLION IN THE U.S.
Where do they live? What do they do in their spare time?
Where do they work?
What causes are they passionate about?
Do they have children?
Where do they spend their money?
How many properties do they own?
Since the 1980s, the number of millionaires in the United States has increased exponentially and is only expected to keep growing in the upcoming years. Millionaires have become very diverse and can no longer be defined by one persona. Sales, marketing, and fundraising professionals now have the dizzying challenge of marketing to both the “traditional” millionaire of days past and the many distinct types of “modern” millionaires. *March 8, 1985 count provided by IRS. ** 2008 count provided by The Huffington Post. ***2018 count provided by WealthEngine.
THE 2018 U.S. MILLIONAIRE REPORT
How old are they?
Sales, marketing, and fundraising professionals now have the dizzying challenge of marketing to both the “traditional” millionaire of days past and the many distinct types of “modern” millionaires.
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2018 With the explosion in the volume of buyers and donors comes the necessity of knowing as much as you can about them. It is crucial to understand the spend or giving capacity of a buyer, donor, or prospect so that you know how to properly engage with them. If you don’t understand the capacity of person, you are missing key personalization and sales or fundraising opportunities. The good news is that is it easy to understand your millionaire with the right data.
We Know Wealth WealthEngine is the leader in wealth intelligence in the United States. We specialize in helping you find, understand, and engage with wealthy individuals. Our database compiles 1,500+ lifestyle and wealth data attributes on over 240 million individuals in the U.S. That’s nearly a half-trillion data points to help maximize your sales, marketing, and fundraising efforts. While our data covers 89% of the U.S. population, most marketers and prospectors focus on a much smaller subset, those with a significant financial capacity. They are looking for “the millionaire next door.”
The 2018 Millionaire Report ~25,000 People $1M - $2.5M $2.5M - $4M $4M - $5M $5M - $10M $10M - $25M $25M - $50M $50M - $100M $100M - $500M $500M+
The following report details millionaires with a net worth greater than $1 million in the United States. We’ve identified them based on their investable assets, real estate, charitable donations, and other financial indicators. Millionaires make up approximately 7% of the adult population of the U.S. The analysis contained here is based on the adult population over 21.
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Understanding the Millionaire Not all millionaires are created equal. As the millionaire population has exploded and wealth has spread across multiple generations, there is no longer one millionaire persona. Their lifestyles, savings, and buying patterns are incredibly diverse. Some prefer experiences and travel, some are environmentally conscious, and others are traditional hard goods buyers and collectors. The status conscious trend followers also still exist, aggrandized and exposed for all to follow in the age of social media.
The smart marketers are doing deep dives into their databases and using data and analytics to identify the many millionaire personas thriving in their audiences. The smart marketers are doing deep dives into their databases and using data and analytics to identify the many millionaire personas thriving in their audiences. This enables organizations to personalize marketing messages for each
of the segments that are appearing.
WHO ARE THE DEMI-BILLIONAIRES? Demi-Billionaires are defined as those individuals who have a net worth of $500M+
~ 1 MILLION ARE NONPROFIT BOARD MEMBERS
Average Age: 63
Business Owners: 76.9%
Average Number of properties: 10.1
Board of Director Members: 76.9%
~ HALF A MILLION SERVE ON A CORPORATE BOARD
Board membership indicates a lifestyle of outreach, giving, and philanthropy. It is also an indication of high potential spending. Board members are a subset of millionaires who are influencers, not just for the organizations they represent but for communities, industry sectors, and the nation.
36% of multi-millionaires are business owners. This indicates a powerful connection between business ownership and higher wealth.
THE 2018 U.S. MILLIONAIRE REPORT
36%
BUSINESS OWNERS
12%
SENIOR EXECUTIVES
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Age Matters Buying and giving patterns change with age. A 40-year-old millionaire requires different messaging and attention than a 60-year-old. Both segments are vital to the bottom line, one for its current wealth and high spend, and one for its potential and considerable impact on long term growth.
MILLIONAIRE BREAKDOWN BY AGE
28.34% 24.10% 20.01%
12.16% 6.78%
6.74%
>90
80-90
70-80
60-70
50-60
40-50
1.54%
30-40
<30
0.33%
Millionaires and Their Cars Millionaires in the United States have unique vehicle tastes. We have listed the top car makes and models among these wealthy individuals. Mercedes-Benz is the most popular car make for this group, and the Mercedes-Benz E Class is the most popular car model. The top 3 for each category are listed below.
TOP CAR MAKES
TOP CAR MODELS
1 Mercedes-Benz 2 Ford 3 BMW
1 Mercedes-Benz E Class 2 BMW 3 Series 3 Lexus RX350
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Expanded Geography Historically, millionaires have always held property in traditionally wealthy locations. However, with the unprecedented growth in the millionaire population, these locations have expanded and diversified. The traditional streets and avenues of wealth still exist, but there are many more untapped pockets to discover.
TOP 5 ZIP CODES
33109 94027 94028 94539
Miami Beach, FL Atherton, CA Portola Valley, CA Fremont, CA
1 2 3 4 5
TOP 10 STATES
California New York Texas Florida New Jersey
6 Massachusetts 7 Virginia 8 Washington 9 Illinois 10 Maryland
Conclusion The 16 million U.S. millionaires have tremendous buying and giving power. While they are a small subset of the entire U.S. population, they are the influencers and market leaders we all watch. This population is comprised of the “Super Spenders,” demi-billionaires, and multi-millionaires whose spending and philanthropic habits influence our entire economy. The millionaire population is more diverse now than at any other time in history, affording sales, marketing, and fundraising professionals an ever-growing universe to engage with. The data highlighted in this report is a small sample of what capabilities exist for uncovering the millionaires you are already engaged with, or want to be engaged with. Behind each chart and statistic are millions of buyers and donors ready to move. The millionaire next door is waiting for the right message, product, or offer to come their way. At WealthEngine, we support over 3,000 customers with critical wealth and lifestyle data and analytics. The right alignment of data is necessary to an organization’s success. We are here to help.
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About WealthEngine WealthEngine is the leading provider of predictive marketing analytics, audience development, and wealth intelligence services. Named a Cool Vendor in Data-Driven Marketing by Gartner, marketers and fundraisers use WealthEngine’s comprehensive insights to understand what drives consumer and donor decisions and when best to engage them. For more than two decades, WealthEngine has provided wealth intelligence solutions to help marketing, sales, and fundraising professionals create strategies to extend their reach and build their prospect pipeline. WealthEngine’s leading database contains 1,500+ attributes on over 240 million U.S. individuals. That’s nearly a half trillion data points powering its suite of products and services. This combination of products and world-class data has positioned WealthEngine as the premier consumer wealth intelligence solution. Headquartered in Bethesda, MD, WealthEngine provides clients in the United States with solutions to provide a complete picture of the people they already know, and tools to find new people they would like to know. WealthEngine works with luxury organizations, financial services firms, nonprofits, hospitals, institutions of higher education, political campaigns, advocacy groups of all sizes, and other organizationa looking to use wealth data to enhance their efforts. WealthEngine’s primary mission is to provide their clients with consumer intelligence to achieve marketing, sales, and fundraising success.
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© 2018 WealthEngine, Inc. All Rights Reserved. Reserved reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been compiled together for informational purposes. WealthEngine is not making any recommendations for action based on the data within this report. Readers are encouraged to engage with their appropriate legal, accounting, and professional counsel before implementing any suggested actions. WealthEngine has no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof and shall not be held liable for any claims or losses that may rise from the implementation of the data in this report. The data is subject to change at any time.
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