06 Jun 6 Headaches Faced by Centimillionaires with Richard Wilson – CREPN #199
Headaches faced by Centimillionaires, really? If you had $100,000,000 would you really have headaches?
Richard Wilson is the authority on wealth challenges faced by the ultra wealthy. He is the founder of he The Family Office Club, and author of the best seller, The Single Family Office where he helps Family Offices deal with the challenges of preserving and transferring the family wealth to the next generational.
By design, centimillionaires, families with net worth in excess of $100,000,000, keep a low profile. They don’t do interviews, nor share publicly about the the challenges of managing and maintaining their wealth.
In today’s episode on CREPN Radio, Richard takes us through the 6 Headaches Faced by Centimillionaires in his book Centimillionaire Migraines.
Prior to starting The Family Office Club, Richard worked in risk consulting for publicly traded companies and then as a placement agent working with hedge funds calling on investment managers. During his investment placement work, he realized that the investment managers were not a good fit for his opportunity. He also learned about Family Offices.
Family Offices were the qualified prospect that had the ability to invest in his opportunities. He searched for information about Family Offices, but found very little. There were no white papers, no network, nothing.
To satisfy his own curiosity, he followed Gary Vaynerchuk’s advice and documented his journey. He started reading, meeting with family offices, and sharing his findings online. Shortly after starting and documenting his journey, he received invitations to speak at family office events. Suddenly, he had the attention of the audience he sought, family offices.
Looking for expand his reach, he purchased Family Offices.com and focused all his efforts on meeting with family offices to learn more. Since 2007, he has done over 115 events, written a dozen books, posted 1800 videos, all of this on family offices.
His progression from finding a need for information, gathering the information, and sharing the information is a textbook example of how to develop and be recognized as an expert in your field.
Inefficiencies in Family Offices Developing the Niche
Inefficiencies in the Family Office industry are and forever will be. Which provides the opportunity for Richard or anyone seeking a chance to develop a niche in a marketspace.
While he developed a ton of digital information, it was not until he was invited to speak at events that his family office consulting business took off.
The cycle of marketing
Richard truly started from scratch. As he researched and shared what he learned, the volume of digital content grew. Once he had the digital content, he got the opportunity to speak at events, which put him in front of his ideal client. Being in front of his ideal client gave him access and deal flow with his ideal client, which provided him additional, quality content. This cycle continued to where he it fed itself.
Additionally, he has found that the best way to attract investors is to take the long view and provide the most value. When you you believe in the niche, and want to be involved in 20 years, it shows.
Family offices have specific needs. For those, Richard and Family Offices provide consuslting help to get set up, and connecting them with providers to meet their needs.
On the other side of the fence are the service providers and Investors looking to provide services or raise capital from Family Offices. For these, Richard shares what information that helps these business tailor their offer so to better appeal and attract the attention and business of family offices. Richard has also authored the number one book, Capital Raising which teaches investors how to raise capital.
Knowing both sides of the market allows Richard ot better serve these individual markets, and be the connector between the two.
The centimillionaire is one that has $100,000,000 net worth. There are 16 times more centimillionaires than billionaires. Every billionaire was first a centimillionaire. The centimillionaire has just as many headaches as a billionaire, less identifiable and typically more accessible.
6 Headaches Faced by Centimillionaires
In Richards book, Centimillionaire MIgraines, he found six unique pain points. Here he shares a few. To learn more about each pain point and get a free copy of the book, go to and complete the webform at https://centimillionaires.com/book/.
Most Centimillionaires achieved their wealth through the sale of their business for which they had a single focus for as many as 20 or 50 years. Now they have hundreds of millions of dollars and could literally do anything they want. They have request to participate in multiple investments, and joint ventures. What they need is clarity specific to what they want. Without it, they will be instructed by others on what to do.
In order to gain clarity, they need to make decisions, on what they want regarding income, investment returns, transparency, where do they want to live, where they what their kids to go to school, etc.
Mismanaged expectations and communications are a recipe for disaster. A lot of families stop talking when money is involved. Without mutual understanding of what is happening things can go awry. Why is the brother, who has an interest in and operates the family business, using the company jet? If the brother happens to lose the sisters money in the business, what happens?
Deal Flow Deficiency
Centimillionaires may not even know they have a deal flow problem. If they are only seeing three deals a quarter, how would they know this a problem if they are not talking with a similar family office to compare notes?
Sense of Loss of Control
These ultra wealthy acquired their wealth due to their ability to control their outcome. Now they have a less control, and they don’t know what to do.
To learn more go to https://centimillionaires.com/.
Sensitivity to Fees
Too many times service providers think they can charge more because you are wealthy. For most wealthy people, part of the reason for their success is due to not over paying for things. While the ultra wealthy can afford to pay more, they are not interested in paying a luxury price for budget level service. They are willing to pay a high price for a high level of service.
They need people who they can trust and who are in it for the long run. Not someone who is short sided. They need ethical people capable of providing valuable service.
Each week I ask my guest what is the Biggest Risk they see that real estate investors face.
BIGGEST RISK: The BIGGEST RISK is Key Man Risk. Most ultra wealthy individuals have developed the specific skill set and knowledge over time. If they drop out of the picture, how long can the business sustain itself?
How to manage the risk: As much as possible, systemize, push the task down to support staff. Realize that the results may be less, but still effective.
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