Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Readers,
In a training session last week, advisors asked me about the best ways to gain referrals from centers of influence (COIs). They talked about the frustration of referring to accountants and attorneys but often not getting reciprocated. For this week’s column, I’ll share a few insights I have learned that will help with these relationships:
1. Remember that COIs don’t know the difference between what most advisors and planners do. They are focused on their clients and their day-to-day business and don’t spend time thinking about differentiation! When I do branding projects for advisors, often I will interview their COI relationships. Inevitably I hear, “I really like him/her/them so I work with them, but I can’t really say what their firm does or why it is different.” You have to continually remind your COI connections about (a) why you are different; (b) what exactly you can do to help their clients; and © how to best engage and work with you. Think of them as the perpetual prospect. It isn’t just one meeting here and there, presenting what you do, and then forgetting about it.
2. Expand your definition of “COI.” In many cases, I have worked with advisors to expand their new business opportunities by aligning with those other than accountants and attorneys. In one case, the realtor in a local, wealthy area, became a great ongoing COI. In another, it was a physical therapist who had worked with the advisor to heal from an injury, and they ended up partnering to do “wellness” projects with prospects. In another, an existing client with significant connections in the town where the advisor practiced became the biggest evangelist and best COI for the advisor. Think outside of the standard box: Who works with your target market? Who do you know that might also want to grow their business? How can you partner in a meaningful way?
3. Identify those COIs who are also looking to grow. Many of the advisors I talk to are working with accountants or attorneys in their 60s (sometimes 70s) and these are not people who need, or want, to grow. Find the young up-and-comers – the 30s, 40s and early 50s who still have bandwidth and are interested in expanding their own practice. Don’t just sell to them; partner with them for mutual benefit.
4. Be present. Have lunch, coffee, send articles of interest. Learn about your COIs as people, not just who they serve and how you can get your hands on their clients. Care about them, as you would care about a client. Learn what they like and don’t like. Share insights and ideas expecting nothing in return. The more you get to know someone, the more you will naturally treat them as an ongoing relationship – not just when you have an opportunity to invite them to an event or you want to check in about what’s happening with their clients. It is a relationship that needs to be nurtured and treated with respect.
5. Consider how you can help them with their needs. Can you share a story about a client who you worked with and how you helped them? Can you show them how the process would work and how they could be incorporated into it? Can you outline ongoing communication and how you will share updates and insights? They may be afraid to hand over an important relationship if they don’t know you well enough. Be transparent about how things will flow and what – exactly – you will do.
6. Focus on only a few relationships. Some of our advisors tell me they have 25-30 COIs in their CRM database. You can’t cultivate a personal and ongoing relationship with 25-30 people. Sure, you can put them on your email list and share updates, but when it comes to consistency in referrals and relating, I suggest focusing on three to five. They also should be people you like to work with and respect. You won’t be able to consistently follow through if these elements are not in place.
COIs don’t “owe” you anything. Yes, you can help their clients and you want the opportunity to show what you can do. But you must have patience, care about them and their practice and be in it for the long haul.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry, in 1995. The firm also founded and manages the Advisors Sales Academy. The firm has won the Wealthbriefing WealthTech award for Best Training Solution for 2022 and 2023. Beverly is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. She is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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