How to Organize a Client-Prospect Dinner

Bring this all together, and you have the client-prospect dinner, a prospecting strategy that has withstood the test of time.

How does it work?

To understand what the client-prospect dinner is, you must understand what it is not.

• This is not a seminar where you bring 50 or 100 people together.2.  
• This is not a "sandwiches in the back of the room" gathering.
• This is not an online event done via Zoom.
• This is not a gathering in your office conference room.
• The client-prospect dinner is an event taking place at a local restaurant that people would want to experience, preferably without paying. The group size might be six or eight people. You're not renting out the entire restaurant or booking a private room; it's a group of people having dinner together.
• There's no sales presentation. That's a seminar.
• It's an opportunity for your client to introduce you to one of the client's friends. There's the unspoken understanding that you hope the friend will become a client. Everyone gets to know each other around the table. The clients and guests get to know you, too.

Who pays?

Good question.

The financial professional picks up at least part of the cost.

Put another way, the clients and guests don't pay.

You might have business development money you've been granted by your office.

Your manager might have discretionary money earmarked for marketing purposes.

You might spend some of your own money, investing it in your practice as a business development expense.

In many cases, you bring in a marketing partner. This might be an annuity wholesaler or someone from a money manager or mutual fund.

Ideally, the partner is one of your preferred providers.

They want you to be successful, asking, "What can I do to help you grow your business?" They often have budget dollars for business development.

You'd want them to pick up part of the cost. It would be great if they picked up the entire check.

If you know wholesalers who will take a group of agents or advisors out for drinks after work, this is another form of business development.

How does it work?

Let's assume three clients attend, each bringing a guest.

You and the wholesaler bring the number up to eight seats around the table.

You introduce yourselves.

The wholesaler (and you) act as hosts.

The wholesaler is positioned as an industry professional and is called on to share what the economists in the home office are saying about the economy, the stock market, or the bond market. (Wholesalers are usually trained for this role.)

Your clients will likely talk about how they enjoy working with you.

You talk about proactive steps you're recommending in portfolios based on the advice the wholesaler passed along.

Where does business come from?

Here's the brilliant part: Your client has pre-sold meeting you over dinner in advance.

The client has told your story, explaining what you've done for the client.

The prospect is sizing you up while having a great meal and an enjoyable evening.

You might have a takeaway for everyone, perhaps supplied by the wholesaler.

You might exchange cards.

The guests might call you afterward.

Your client might ask their guest if they have gotten in touch.

You might initiate the follow-up.

It's cultivation.

How do I get my client to bring a friend?

Now we get back to "What can I do to help?" You ask the client to bring a friend along.

Some clients are good at referrals. Leave it to them.

Others need coaching.

Suppose they said: "My agent is looking for new clients. Why don't you come with me and meet her?"

Bad idea. The friend would likely run the other way.

Why? There's no benefit for the prospect.

Here are a few ways the invitation might be extended.

(This is not a script! Do not hand this out to clients! Chat with them about the wording.)

The similar problem.

"Fred, you know I have been worried how Judith would cope if I passed away first. I handle all the bills. Fortunately, I found a good advisor (you). He showed me how Judith could get regular monthly income, like a paycheck. I breathe easier now.

"I know you share the same concern about Mary. I'm having dinner with (you) next Thursday. Why don't you come along as my guest? I think you would enjoy meeting (you)."

The stock market.

"Fred, I know you're worried about the stock market, just like me. What will happen next? What should I do?

"Fortunately, I found a good advisor (you). When I get worried, he gets me to focus on the long term. Sometimes he shows me opportunities others are missing. I think you would enjoy meeting (you).

"I'm having dinner with (you) next Thursday…"

The great restaurant.

"Fred, I know you like good food. You've always wanted to try (restaurant). Now's your chance.

"Next Thursday, I'm having dinner there with my financial advisor (you). He said I could bring a guest.

"Why don't you join me? I think you'd like to meet him."

What about the freeloader?

Freddy Freeloader has been a client forever. He never passes up a free meal.

When you plan a seminar, the question is not, "What's the topic?" It's, "Will there be food?" At previous times out, Freddy has asked, "I hope you don't mind if I order the lobster."

Somehow, Freddy got an invitation to your client-prospect dinner. Freddy accepts immediately.

He says, "I'm glad to come, but it will just be me. I can't think of anyone to bring. Don't worry; you can count on me to show up!"

What now? How can you uninvite Freddy?

Here's another strategy I learned in the field.

"Freddy, you must have misunderstood. That's the next dinner. We'll be having a client appreciation dinner in two months. You're definitely invited.

"This is a different dinner. This is the dinner where clients have the opportunity to introduce us to their friends. Everyone will be bringing someone. But don't worry, you are definitely on the invite list for the next dinner."

The Takeaway

The client-prospect dinner makes sense for many reasons.

You are investing money, but you usually have a partner sharing the costs.

Would this strategy work for you?

Bryce Sanders is president of Perceptive Business Solutions Inc. His book, "Captivating the Wealthy Investor," is available on Amazon.

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