Centres of influence — professionals with whom you cultivate referral relationships — can be crucial to the success of your practice. “They can be the difference between success and failure,” contends Raymond Yates, financial advisor and senior partner at Save Right Financial Inc. in Mississauga.
COIs are a good source of referrals. You can reciprocate by referring your clients to these professionals. “They are a must at the early stages of a practice,” Yates adds, “and remain an important building block throughout one’s career.”
COIs fall into two broad categories, according to Neil Taylor, group vice president with responsibility for marketing at Winnipeg-based, Investors Group Inc. They are: professionals, such as consultants, accountants and lawyers; and community and professional associations, including cultural and ethnic organizations.
It is important to have more than one COI, Yates says.
George Hartman, CEO of Toronto-based Market Logics Inc., agrees. “Every good advisor should have 10 to 12 centres of influence,” he says. “The long-term value of a COI can be really high.”
How do you find COIs? Says Hartman: “You find them the same way you find good clients.”
Here are some tips on how to build and maintain COI relationships:
> Proactively seek COI relationships
Make a list of professionals with whom you have an existing relationship and those with whom you would like to work.
Your clients can provide you with additional references, such as their accountants, lawyers or other influential professional, Hartman suggests.
“Establish yourself in community groups,” Taylor says. But you must commit yourself to that community, he cautions, so as to not appear opportunistic.
> Pitch your value proposition
Let the COIs know what you do, the way you work and your skills and experience. Show them that you have the ability to work in situations with “overlapping services that are complementary, not competing,” Taylor advises.
Give them compelling reasons why they should work with you.
Remember that this is a reciprocal business and that you should show what you bring to the table. For instance, you can offer to introduce potential COIs to people in your network, he says. Alternatively, expect them to “pitch” you to their network.
When dealing with community groups, you must be credible and make a worthwhile contribution, says Taylor. Find out from community leaders what is the right way to contribute.
> Build trust
The No. 1 reason why a COI might not refer you to a client is if they believe their reputation is at risk, Taylor says.
“They should be proud to refer you and be confident to include you in their network,” he says.
> Provide regular updates
Always let your COIs know how your practice is doing.
“Manage them the same way you would manage a high-value client,” Hartman says. “Maintain regular contact, invite them to client events and share any new developments.”
> Say “thanks”
Remember to thank your COIs for referrals. Send them a personalized note, call them directly or give them an appropriate gift.
“Keep them posted about the progress of any introductions,” Hartman says, “without disclosing any confidential information.”
IE