Building a better referral network

(September 2008) Imagine receiving a phone call from a respected accountant or lawyer, telling you that he has a client who really needs your expertise and would like to speak to you as soon as possible. The client fits your ideal client profile.

How do you make this scenario reality on a regular basis? Start by following these steps to getting to know centres of influence.

1. Figure out where you fit.

Think about what unique ability you bring to the table that can help other professionals provide better service to their clients. Be definite about what it is that you do better than everyone else, focus your attention on that specific service or product and articulate it clearly.

The narrower your focus, the easier it is to find people who can become referral sources. For instance, I only provide services related to fee-based corporate, tax and estate planning. The only products I sell are life and health insurance. Since I don’t sell investments or money products, I can work closely with investment advisors who are not strong in the insurance field.

2. Where to find COIs? Start with your client base.

Every advisor has at least one client. That client must have an accountant and a lawyer. Your mutual client makes for an ideal reason for you and the COI to talk together. The accountant, for instance, will always appreciate meeting the client’s advisor. Make an effort to meet all of your clients’ other professional advisors to see if they are people you can connect with on a personal as well as professional level. Once there has been a first meeting, it will be obvious whether or not you’ll want to continue meeting with these COIs.

Also call COIs who you respect and feel are outstanding in their fields. Introduce yourself, let them know that you respect their expertise and ask them if they are interested in having the discussion about working in an alliance. You need to work through the issues relating to independence, liability, egos and the process of how the client would receive your combined services from a practical perspective.

3. Have passion.

When talking to COIs, be clear about your values and your vision, and commit yourself to adhering to them as your guiding principles. It is your values that will become the basis for all of your relationships, especially the relationships you will share with your COIs. Your passion — if it’s genuine — will win people over. Spend some time identifying that product or service that you are passionate about.

4. Work on the relationship.

When you meet other advisors who you click with and they see potential in working with you, enter into a formal arrangement defining how you will work together and how you will share revenue generated by the products or services provided to that client. Organize regular meetings for planning and discussion.

Most of us want to be in personal and business relationships that are inspiring. We want to feel like we bring as much to the relationship as we take away. It always has to be win-win.

I speak with some COIs almost every day because we are working on mutual client affairs in the normal course of business. I welcome every opportunity to connect with them because they are not only COIs but have become friends as well. We have agreed that we will call each other often even if it’s for no other reason than to touch base.

5. Get over rejection.

The fact is, not every COI will want to work with you. But don’t stop looking and be discouraged if every relationship doesn’t work.

Say no to relationships that violate any value or preference because there are enough people in the business world to find common ground. Building relationships should come naturally and you want to click with any COI in your network.

I’ve had push back on many occasions. When it happens, I don’t try to continue the relationship except for any professional reasons that may exist. I will only align myself with people who genuinely like me and respect the role that I play in a client’s affairs.

The process of building a successful advisor referral network is both fun and frustrating. You open yourself up to others and with that you will receive criticism. You must be prepared to grow from that and adjust your course as you go. If you make the effort and have the vision anything is possible, especially when you have other likeminded people in your corner. Good luck.

Bernie Geiss, CFP, CLU, RHU, is the president of Cove Financial Planning Ltd., based in North Vancouver. He was the 2002 recipient of the Advisor of the Year Awards for the BC/Territories Region.