Identifying high-net worth stock investors
Long time lurker, first time poster.
I am a marketing analyst at a securities litigation class action law firm. In simple terms, our business model is to sue public companies that have allegedly committed fraud, which resulted in a stock drop and economic loss for shareholders. Our entire model is on a contingency and we only get paid if a case settles. In order to initiate an action, we need to represent a shareholder with a large economic loss in the stock. Stock class action cases can last anywhere from 1 year to 10 years and generally settle for tens of millions of dollars. The law firm takes a 20 - 30% cut of the settlement and the rest is distributed to investors based on the number of shares held.
My challenge is to identify high-net worth individuals willing to file an action and represent the class of shareholders. There is no cost for the shareholder to drive the litigation but most consider it an inconvenience. And the shareholder who files the action does not get any monetary benefit on top of a recovery for the class. That being said there are a lot of investors out there who are pissed with losing money and are willing to step forward to recover some of their funds.
With respect to my IM efforts, I created a stock/finance news aggregation site to generate leads. The site has been successful and I have created a database with over 50K shareholders but unfortunately most of them owned an insignificant number of shares and are not ideal for our purposes. I have also created stock specific micro-sites and issued press releases through BusinessWire but this is very costly.
So I turn to the community here for any suggestions on how to target high-net worth investors through the web. Feel free to ask me any questions about the industry.
Thanks
I am a marketing analyst at a securities litigation class action law firm. In simple terms, our business model is to sue public companies that have allegedly committed fraud, which resulted in a stock drop and economic loss for shareholders. Our entire model is on a contingency and we only get paid if a case settles. In order to initiate an action, we need to represent a shareholder with a large economic loss in the stock. Stock class action cases can last anywhere from 1 year to 10 years and generally settle for tens of millions of dollars. The law firm takes a 20 - 30% cut of the settlement and the rest is distributed to investors based on the number of shares held.
My challenge is to identify high-net worth individuals willing to file an action and represent the class of shareholders. There is no cost for the shareholder to drive the litigation but most consider it an inconvenience. And the shareholder who files the action does not get any monetary benefit on top of a recovery for the class. That being said there are a lot of investors out there who are pissed with losing money and are willing to step forward to recover some of their funds.
With respect to my IM efforts, I created a stock/finance news aggregation site to generate leads. The site has been successful and I have created a database with over 50K shareholders but unfortunately most of them owned an insignificant number of shares and are not ideal for our purposes. I have also created stock specific micro-sites and issued press releases through BusinessWire but this is very costly.
So I turn to the community here for any suggestions on how to target high-net worth investors through the web. Feel free to ask me any questions about the industry.
Thanks
Steve Browne, online business strategies, tips, guidance, and resources
SteveBrowneDirect