Centres of influence can be key to future referrals 

A steady stream of referrals is critical to the health and sustainability of any financial advisory practice. Advisors understand this, yet few have an intentional strategy to inspire and motivate referrals.  

There are a couple of reasons. First, many advisors believe that if they deliver exceptional service, clients will naturally refer them to others. Second, those clients who don’t proactively refer have to be asked directly to do so. That is, to say the least, uncomfortable.  

Referrals are an important way to grow your business, but focusing on your clients’ friends, family members and colleagues is inefficient. There is a bigger opportunity — it is easier and more effective to ask your client for an introduction to other financial professionals they work with, like their accountant or estate-planning attorney for example. 

These professionals operate as centres of influence (COI). Each has a network of clients that trust their expertise and judgment. Let’s examine the opportunity to identify and establish COI relationships by framing client conversations that naturally lead to introductions.  

What works and what doesn’t 

Like anything else, there are strategies that are more effective than others when it comes to developing COI relationships. Cold calls and emails don’t work. COIs are inundated with these messages and are unlikely to respond. A personal introduction can work, especially if it comes from one of the COI’s valued clients.

Think about it. If one of your best clients asked you to meet with someone, you would do it.  

Ask your client how satisfied they are with the financial professional whose name they’ve shared. If they are unsatisfied, you might offer to introduce them to someone that could be a better fit. 

If they are satisfied, and you don’t know the individual, ask them to tell you more about them. Ask what they like most, and what the biggest impact of working with them has been. 

Let your client know that you are looking to expand your trusted network of financial professionals that you refer clients to. And then ask for an introduction. 

Engaging the COI 

Clarity is important in your first conversation with the COI. Clearly frame your objective and how they’ll benefit from a relationship with you. Explain that your goal is to refer clients to a trusted financial professional that can work collaboratively with you to meet client needs.  

Base your conversation on these five important points: 

1. Emphasize that they came highly recommended by your mutual client. 

2. Ask what types of clients they work best with. 

3. Understand how they work with clients.  

4. Determine if they are open to making reciprocal referrals should an opportunity arise. 

5. Plant a seed — ask if they’ve ever surveyed their clients about their experience with the COI and if they have other financial needs best addressed by a financial advisor? 

Long-term mutually beneficial relationships take time to build. What steps will you take to nurture the relationship? How can you stay in touch and seek to add value? How will you encourage them to do the same?  

Focus and patience can help you build a steady pipeline of externally sourced referrals to supplement client leads and accelerate your growth.