Broker Check

The Beer Test

| August 13, 2015
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Why My Clients Must Pass The Beer Test 

People often ask me who my ideal client is.  In a world of money, money, money, most financial advisors respond with a certain niche profession, net worth or account minimum.  For years I tried to find my own niche.  I tried to assimilate and define who I wanted to work with by placing that box around certain characteristics.  Finally, I realized that my niche has nothing to do with them, it has everything to do with me.  This is my business and I need to be a little more selfish.  I decided to work with people who I like, quite simply.  I am not interested in how much money you have, what you do for a living or what you can do for me.  To become a client, you must pass the beer test.

Now you are wondering what the beer test is.  No, I do not challenge a 78 year old to down 4 beers in my conference room before deciding to transfer her funds over to me.  My assumption is that would drive me into some sort of compliance issue.  I work with people I like and I define that as someone who I would want to drink a beer with.  As an extrovert, I love people and have to pay close attention to signals to gauge this well.  If clients want me to day trade for them, they don’t pass the beer test.  If money is the most important thing in a client’s life, they don’t pass the beer test.  If someone talks about suing people they don’t pass the beer test.  If clients call every day, are very negative and don’t allow me to help them, they don’t pass the beer test.  If clients want someone to time the market and predict the next market crash, they do not pass the beer test.  If a client has never even sipped a beer, they can still very much pass the beer test.  If a client is focused on their family and career they pass the beer test.  If a client is looking for some help and wants an unparalleled financial relationship, they pass the beer test.  

My clients are the people who I work for, my bosses.  I have roughly 30 more years to work with people and advise their financial futures.  While those 30 years will pass fast, I have chosen to build my business with good people, much like you would build any other business.  So to you advisors out there, I challenge you to look at your own target market.  Do you dread coming into work every day?  Is there a certain client who you dread taking their calls?  This could be something that could help.  Transform your career and how you operate.  One of my favorite quotes about business comes from Warren Buffett's esteemed business partner Charlie Munger who says “Choose clients as you would friends.”  While I call this process the “Beer Test,” it has become a very helpful tool in growing my business the right way.  I love coming to work every day.  My clients are like family and they rarely ever leave me.  

Matt Logan is a Representative with Matt Logan Inc and Summit Brokerage and may be reached at, 336-540-9700 or [email protected]  

Matt Logan Inc is an independent firm with Securities offered through Summit Brokerage Services, Inc., Member FINRA, SIPC.  Advisory services offered through Summit Financial Group Inc., a Registered Investment Advisor.  Summit Brokerage Services, Inc., its affiliates and Matt Logan Inc. do not give tax or legal advice. You should consult an experienced professional regarding the tax consequences of a specific transaction. These are the views of Matt Logan Inc, and not necessarily those of Summit Brokerage Services, Inc. and any of its affiliates and should not be construed as investment advice.

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