Last week I closed on a $2 million account, thanks to a very warm referral from a CPA who routinely refers business to me. I also receive many referrals from the CPA down the hall—an established professional who is reluctant to provide referrals to anyone for fear of jeopardizing his relationship with his client if the referral goes south.
Why am I so lucky? How is that I have received valuable referrals from professionals who would otherwise be very reluctant to expose themselves or their clients to the risks of working with an investment advisor?
As a former attorney and CPA, I have walked in the shoes of each of these professionals in my previous careers. I no longer practice law or tax accounting, but while I did, I was frequently pitched by advisors, particularly those from the large wirehouses. Because their overtures, were transparent and focused on themselves and their own business-building goals, I didn’t trust their intentions or their level of expertise. I was unwilling to risk my relationship with my clients by recommending them to a possibly unqualified advisor.
There is much material available today that strongly encourages this type of prospecting, marketing to lawyers and CPAs through lunch dates and mass mailings. Nevertheless, the facts from my experience weigh heavily against this approach. I’m not so sure directly pitching attorneys and accountants will work, but having been on the other side of the equation, I can tell you what will impress them and make you desirable as a professional ally. Here are six ways to demonstrate you are the kind of financial advisor any CPA or attorney can entrust with their clients:
1. Serve your clients well
Although I do not pitch accountants or attorneys, I do make sure that I serve my clients well and also accompany them to the attorney’s office to discuss estate planning issues. By demonstrating a strong commitment to serving my clients, I immediately impress and distinguish myself from the other advisors out there. In addition, by speaking the attorney’s language and demonstrating competency and interest in technical areas (such as estate administration or tax), you display a level of knowledge and professionalism that will naturally garner respect from your fellow professional.
2. Introduce yourself
Whenever new clients come on board, I send a letter to their tax professional introducing myself and offering any assistance the accountant might need from me. Although I do not see this as an extraordinary marketing move, coupled with my other actions, it helps reinforce my image as a thorough and organized professional. And remember, you are not the only one trying to gain access to this accountant’s clients.
3. Screen out the competition
A colleague of mine who prepares taxes (as well as managing investments) received a referral from an advisor to prepare taxes for their mutual client. During the course of the relationship, the client grew comfortable with the tax professional and decided to move his seven-figure investment account to the tax professional (now turned investment advisor).
A word to the wise: some CPAs are starting to enter the financial services business. Some of them are out there forming strategic alliances with financial advisors. Be careful who you provide or seek access to, because you may come to regret it. In fact, I require the tax professionals I work with to sign a letter stating they will not serve my clients beyond the scope of tax preparation or advice, nor will they solicit my clients for financial services—ever.
4. Spend some time learning the biz
I receive numerous referrals from tax professionals, divorce attorneys, litigators, and so on. How do I do it? Why do they choose me over the competition? It’s the two Cs—competence and compassion.
In terms of competence, remember that although attorneys and tax professionals are often tired and overworked, these folks were trained as technicians and they will respect someone else who also shows technical expertise. If you can speak their language, you will earn their respect and their referrals.
And why be compassionate? When you demonstrate genuine concern for clients, an attorney or accountant can rest assured that their clients will be in good hands with you. The referrers know you won’t embarrass them. Displaying your competence and compassion will garner more meaningful referrals from your fellow professionals than any other marketing strategy.
5. Create the dream team
One of the best ways to get a referral is to give a referral. I am routinely searching for the best professionals in my geographic area so I can develop partnerships, share ideas, and gather feedback. As a by-product of these outreach efforts, the relationships generate great referral webs.
I have actually created different teams including attorneys, CPAs, and myself to serve certain clients through these referral webs. Everyone on the team benefits and it certainly positions all of us to gather more referrals in the future and more business from the particular client. One of my top clients refers to us as her “dream team” and she doesn’t make a move unless we all agree on a strategy. Moreover, this client has referred many other ideal clients like herself.
6. Create processes to protect your clients
Creating an intake process is absolutely critical to the smooth functioning of your practice, particularly when it comes to converting prospects into clients.
When a prospect calls our office, it sets in motion an entire set of processes beginning with the mailing of our information kit. The information kit includes a detailed questionnaire along with our marketing materials. We require that the clients complete the questionnaire and submit their related documents, such as wills, trusts, powers of attorney, prenuptial agreements, tax returns, and property settlement agreements.
As part of the intake process, we review these documents and make any recommendations. Often this entails communication with the estate-planning or matrimonial attorney and accountant as the documents invariably need to be updated or amended. This is a great opportunity for the new advisor to shine. You demonstrate your commitment to a thorough analysis on behalf of your client—something that is sure to impress everyone involved. And the other professionals are thrilled because you have just sold their services without any effort on their part.
Following these team-building situations, I often obtain referrals from the professionals, as they have witnessed my dedication and my professionalism firsthand and feel comfortable vouching for my services in the future.