Centres of influence (COIs) represent a strategic method of bringing in new business — as opposed to the hit-and-miss of cold calling.

“Cultivating a relationship with another professional,” says Sylvia Garibaldi, a business building coach with SG and Associates in Toronto, “is an effective way to have qualified referrals come into your business.”

Follow these tips to develop strong relationships with COIs:

> Start with your clients
Ask your clients about the other professionals they work with. Having a client in common is a good starting point for a COI relationship.

Garibaldi recommends sending your clients a note telling them that you plan to expand your network and your services through other professionals. Ask your clients if they work with professionals they could recommend.

While accountants and lawyers are the traditional COIs used by financial advisors, she says, you should look for other professionals as well, such as a certified divorce financial analyst or an HR consultant.

> Develop a wide network
Similar to a lead-generation strategy, your COI pipeline should include many professionals, from which you may create a few strong relationships.

You should have a network of 15 to 20 COIs, says Garibaldi. Out of those professionals, you may have only five solid relationships that result in referrals.

“When it works, it can work extremely well and be extremely lucrative for the advisor,” she says. “But [a COI strategy] is a lot of work. It’s trust; it’s building a relationship, and it takes time.”

> Ask questions
During your initial meeting with a potential COI, find out as much as you can about that professional.

Think of it as an interview process, Garibaldi says. Come prepared with a list of questions to find out more about the professional and his or her business.

Garibaldi recommends starting with questions such as:
– What types of clients do you want referred to you, and why?
– What types of problems do you solve for clients?
– What are the most compelling reasons why I should introduce you to my top clients?

> Come prepared
Be ready to talk with the COI about your own business.

Prepare a brief presentation outlining the problems you solve for clients, Garibaldi says. You may wish to include a sample financial plan or case study of what you do.

As well, you should provide a bio, she says, and an outline of your values and code of ethics.

> Sign them up
Add your new contact to your communication materials.

“If you feel that this would be a good working relationship,” Garibaldi says, “then you can ask the COI if you can keep [him or her] updated by sending some of your client communications.”

For example, you could add the COI to your newsletter mailing list.

This is the first in a two-part series on COIs. Next: How to strengthen your COI relationships.