Accredited Investors: Marketing with High Net Worth Mailing Lists

by Dave Hare

Accredited Investor Profile

The SEC defines an Accredited Investor as an individual with an income of over $200,000 ($300,000 if married) for the last two years, with a likelihood of the same income for the current year or a net worth in excess of $1,000,000 excluding the primary residence. Companies that market to accredited investors are required to confirm eligibility.

An accredited investor is often an individual in the age bracket of 50 years plus. They have a secure financial future and they have taken care of their kids financially as well. Along the way they have probably made a few mistakes in various investments.  Therefore, they apply their knowledge and skill set to evaluate new opportunities carefully.

Reaching the Accredited Investor

As individuals acquire wealth they are often marketed to with financial offers. It is challenging to get them to respond and even harder to get them on the phone. Most (about 90%) are on the Do Not Call Registry.  Those that are not often look to see if they recognize the number before answering.   They may avoid a VOIP (voice over IP) number completely.

People who market to accredited investors successfully need to have an offer that makes sense. One well known marketing guru put it this way: “These people have a finely tuned shit detector.” However, once you have them as a client they tend to continue to use you and refer their friends.  That makes a high initial cost of sale much more reasonable over the long term. Direct mail is still king in this channel unless you are a house hold name.  Unlike telemarketing, direct mail has the unique ability to get inside the house.  And, it is “sticky”; direct mail will sit on the desk or kitchen counter until someone looks at it and deals with it.  It is the salesman that never sleeps.