Think back about the place you grew up in when you were a kid. If it was the suburbs (any suburbs) this will probably be more relatable, but stay with me here - thinking back, you probably had a “rich kid” in your school. His parents had the biggest house in town, maybe up on a hill or on the water or with a hidden driveway. Maybe a chauffeur took that kid to school. Maybe you heard stories from a sleepover other kids got invited to about a basement full of arcade games that didn’t need quarters. Maybe the rich kid had a crazy Sweet Sixteen or took a whole friend group on vacation.

But the thing is, it was one kid. And everyone knew about that kid and it was just “yeah, that’s that girl who’s daddy has a mansion.” Or “that’s the kid who drives a Porsche, so what.” And it wasn’t a big deal. The envy was in check because everyone else around you, all day and everywhere you went, seemed just like you and your family. Normal. You were happy being normal.

That world is gone now. In today’s world, the rich kids have multiplied. They’re everywhere. Their parents may or may not have done anything special. When even the most banal businesses like landscaping and dentistry are attracting the attention of buyout firms and private capital, people who seem “normal on a Monday” can end the week looking like Lifestyles of the Rich & Famous.

In every county, in every state, every town and in some cases every neighborhood, there are now multi-millionaires and deca-millionaires. The number of households with a net worth over $30 million has absolutely exploded in recent years thanks to the stock market. There are now twice as many centi-millionaires ($100 million) than there were twenty years ago. This means the lone rich kid phenomenon you grew up with has given way to a situation in which there are seemingly wealthy people everywhere you look. You might even be one of them.

And the number one thing Corporate America has figured out in recent years is that this cohort will absolutely pay a lot more than the standard price if you offer them a premium version. Doesn’t matter what it is - section of the plane, area around the hotel pool, access to the theme park, viewing area at the festival, parking spot at the arena.

Upgrade it and they will pay.

You can use technology to figure out the point at which they’ll stop paying. And until you hit that point, keep throwing up the velvet ropes and upping the service.

It’s funny when you think about how many articles are being written about how wealth management fees will “inevitably” come down by reporters who cover our industry. It’s like they have a paper bag over their heads. What on earth are you talking about? Every entrepreneur I talk to in the wealth business is scrambling to add services, not cut fees. From a profitability standpoint, this may be a distinction without a difference - it’s margin compression (because you have to hire more people) rather than a fee compression. But the end result is the same - catering to today’s wealthy has nothing to do with price and everything to do with providing value.

Wake the fuck up. The last thing a high-earning rich person is looking for is to get less. Of anything. They want more and they want to pay more to experience it. I know, I know, “THIS is the top.” Wow, what a super original take, you’ve really outsmarted us all this time.

Inside Wealth

Robert Frank, CNBC’s in-house billionaire whisperer and an incredible reporter, absolutely crushed the pod this weekend. We went deep into the lives and spending habits of the newly wealthy and the fabulously rich.

I don’t want to spoil it for you, so watch or listen below!

Apple, Spotify, etc:

Robert is coming to Future Proof Citywide in Miami next month. If you work in wealth management, I hope to see you there.

Have a great weekend! Talk soon - Josh