The Rule of 150, first posited in the 1990s by British anthropologist Robin Dunbar, refers to the maximum number of people with whom any person can build meaningful relationships. While there appears to be a spirited debate over the actual figure (100? 150? 250?), the general assumption that humans maintain closer relationships within small groupings seems to have some historical merit. In military leadership dating back as far as the Roman centurions, history has borne out that, once the number of 150 is exceeded, it's nearly impossible for individuals to form strong enough interpersonal bonds to work well together.

The lessons learned from military leaders past and present is an interesting one to compare with some classic marketing tactics in assessing whether or not marketing relationships can benefit from the Rule of 150 as well. A few of these key marketing practices are examined here.

Alternatives require extra attention

Due to their diverse and often esoteric nature, marketing alternative products to investors is a lengthy and detail-oriented process. Before actual sales efforts can begin, marketers of these alternative assets must engage prospects through education about the suitability and attractiveness of these strategies and their relevance to portfolio allocation. Once this groundwork is established, then the more selective process of determining appropriate strategies can begin. This means that potential investors must be willing to work with alternative marketers to form a dynamic and interactive relationship as they move through the educational and informative stages of this process.

Think smaller to get bigger

How can alternatives marketers use the Rule of 150 to its maximum advantage? Here are four suggestions where applying the Rule of 150 may serve in forming stronger relationships with prospects.

Add value up front: The initial outreach to prospects should focus on providing a le......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.