How to find the best commodity clients

how to find ideal clients

Financial Advisors (FAs) to HNW clients are in the business of gathering assets and wrapping them up in a “fee for service” asset management program built around an asset allocation model.

I know they like to call themselves “money managers” but they don’t know their asses from a hole in the ground about portfolio management. Their sole focus is to get in front of money in motion. That’s why they have as many as 5 securities licenses, in addition to the health and life insurance licenses. FAs are in the business of consultative sales – it’s a marketing job.

You can bet that if their clients are considering an alternative investment or managed futures, that the Financial Advisor will have a product in-house to allocate their client funds into (and get the fees too). This isn’t altruism.

Conclusion

Your best leads – the Glengarry leads – will be the people you already know who deal with commodities as part of their business. They understand the cyclical nature of commodities, they have superior fundamental knowledge of the business, and they understand basis risk.

These are the perfect candidates for you to market your services to. The less you have to explain to someone about how commodities work, the easier it will be to get your message across. If you run a long/short equity fund, these are good candidates for you too as they inherently understand the nature of shorting / short selling.