Working with centres of influence can be the fastest, easiest way to build a practice, says Sandra Bekhor, president of Bekhor Management in Toronto.
COIs can be the best sources of referrals because they know you, your clientele and your business — and they want to tell people about you. And because these professionals are familiar you’re your business, they can send the “right” referrals to you.
Traditionally, a centre of influence is one of a group of professionals whose work complements your business — such as an accountant or a lawyer. But, Bekhor says, you can also build a network of referral relationships that includes other financial advisors, also known as advisor-to-advisor COIs.
Advisor-to-advisor COIs can also be an excellent source of referrals, but they are not for everyone.
Here is a strategy for developing advisor-to-advisor COIs:
> Find your niche
Define your ideal client. If you specialize in a certain type of client, you won’t be in direct competition with other advisors who do not serve that market.
Most advisors are generalists who don’t specialize in a defined ideal client profile or target market, says Louise Maurice Taylor, coach and owner of the Okanagan Valley Business Coach in Vernon, B.C. For these advisors, everyone is their competition, making it difficult for them to build advisor-to-advisor COIs.
But specialists can work with advisor-to-advisor COIs. For example, if you cater to retired professionals, you can build a relationship with an advisor who specializes in working with young families, to refer clients to each another.
Also, Bekhor suggest, reach out to advisors in different cities or regions. They are not direct competitors, either.
> Follow your passions:
Use your personal interests and hobbies to find COIs.
For example, if you like to write, start a blog or newsletter, says Bekhor. Reach out to other advisors who blog or write newsletters for feedback and to discuss each other’s businesses. Then if you feel you’re of like-minds, promote each other in your writing through links or a small mention to reach a wider audience.
You may not see any immediate financial results from this strategy, but over time, building a profile in the industry will help your business.
> Focus on one strategy
Choose one plan for building a centre of influence and stick to it.
You might be good at five things, but most of us are great at only one thing, says Bekhor.
Whether you choose blogging, public speaking or volunteering with an industry association to meet other advisors, focus on just one method.
> Return the favour
To strengthen make your relationships with other advisors, become a valuable COI yourself.
Ask yourself how you can help your COIs and bring them business as they have done for you, says Taylor.
As well, when someone makes a referral or recommends you, Bekhor says, remember to thank them.
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