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In a time when multiple referrals sources are required for profitable growth, it’s imperative that financial advisors accelerate their referral-building efforts by proactively creating a powerful center-of-influence network.
Whether you’re just getting started or have a network already in place that you want to develop further, several initial steps can help you sharpen the focus and efficiency required to cultivate relationships with those who are most likely to provide coveted introductions.
Step 1: Define the criteria for establishing your relationships
It’s easy to peruse LinkedIn and, as many advisors have told me they do, become amazed, overwhelmed and even intimidated by others who have 200, 300 or more connections.
While impressive positions and connections are nice, they're not the most important qualities for a powerful center-of-influence network. Pursue relationships that promise to be compatible and mutually beneficial over the long term. Just as with a sports team, the "chemistry" has to be right for your network to function well.
What criteria should you look for when building your team? It’s simple. You need to pursue relationships with professionals who possess all three of these qualities:
- They have regular contact with the types of individuals who fit the profile of your ideal client.
- They are trusted and respected by you and by others.
- They are willing to provide you with regular referrals.
Step 2: Look in the right places to find professionals to include in your network
When looking for center-of-influence professionals, broaden your search beyond the obvious and the immediate. CPAs and attorneys are great resources, but don't stop there. Consider business executives, business owners, bankers, venture capitalists, insurance brokers, consultants and other professionals who meet the criteria established in Step 1. Bankers who are middle-market lenders or who work at institutions that offer limited wealth management services are especially good candidates.
To find potential referral sources, try the following approaches:
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Join, regularly attend and serve on the boards of organizations and associations that attract the types of professionals you want to meet. Consider business organizations, civic clubs, trade associations and philanthropic groups. Start close to home and expand your geographic horizons in the same manner that Deirdre Prescott, President of Massachusetts-based Sandy Cove Advisors described to me:
One thing I've learned from my twenty-plus years of working at wealth management and banking institutions is that it pays to expand your horizons when building a referral platform of center-of-influence relationships. There are many professionals outside of metro areas who are seeking highly reputable financial advisors that they can refer their clients to, and there are fewer advisors vying for their attention. I often look to establish new relationships with professionals that reside thirty, forty or even fifty miles away from my office.
