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Written by: Jeff Thorsteinson
Your ability to generate referrals from professionals depends on one thing: confidence. COIs must believe in your expertise and commitment to client service so they’re confident you’ll enhance their reputation, not hurt it. Here’s how to earn that trust.
Years ago, I read about how important it was for advisors to spend time and money building relationships with "influencers"—people connected to key organizations who could open doors to more influential contacts. The idea was simple: the more you invested in these groups, the more referrals you'd get. While joining professional and community groups is still a great way to meet COIs, thinking you can buy relationships or referrals is naive. It’s always been about genuine, meaningful connections.
If you want to build relationships with COIs (and you should), you need to be a little more sincere, strategic, and subtle than that. You need a system for converting casual acquaintances and chance meetings into reliable referral sources. That's what we'll talk about here, but first, I'd like to answer the top three questions I hear from advisors about utilizing COIs to build your business.
How many COIs do I need? While many advisors focus on building a few deep relationships, there’s no reason you can’t have both quality and quantity. One of our clients has developed 1,100 COI relationships, and while that’s an outlier, it shows that working with multiple referral sources can be highly effective. Aim for as many solid, manageable relationships as you can realistically connect with each quarter.
Who should I target? When you think "professional," you probably think of accountants, lawyers, or bankers. But expand your horizons. Professionals like general insurance agents, chamber of commerce presidents, local radio personalities, or architects encounter potential clients every day. Don’t limit yourself to the financial industry. In smaller communities, knowing the right people can be even more valuable.
How long should I invest in building these relationships? Earning professional referrals takes longer than client acquisition. In fact, it’s about four to five times longer. Be patient. If you don’t see immediate results, don’t abandon your strategy. And if referrals slow down after an initial success, don’t rush to change your approach. Relationships take time to nurture.
OK, now let's talk about that strategy. We recommend a five-step system:
1. Combat Misperceptions with Proven Systems and Expertise
Many Centers of Influence (COIs) wrongly see financial advisors as salespeople rather than trusted professionals. This misconception, especially common among accountants and lawyers, can limit referrals. To shift this perception, demonstrate the rigorous standards of the financial industry, including your qualifications and the ongoing professional development that ensures the best outcomes for your clients.
Most importantly, show them your success is built on proven processes, not just salesmanship. Systematize your practice with a transparent, client-focused wealth management system, then explain it simply and directly. COIs, particularly accountants and lawyers, value efficiency and structure. You'll earn their respect and confidence by clearly outlining how you’ve refined your systems to elevate the client experience.
2. Create a Compelling Referral Guide
Once you’ve refined your systems, it’s time to share them with your COIs through a well-crafted referral guide. This concise tool helps COIs understand when and how to introduce you to their clients, ensuring they present your services with confidence and consistency.
Your guide should include:
- A summary of your unique value
- A clear list of services
- An explanation of your proprietary process with visuals
- A case study or client success story
- Testimonials that showcase your expertise
- A professional bio of you and your team
This guide will empower your COIs to always refer you to the right clients.
3. Host a Quarterly Leadership Summit
Create an exclusive quarterly event for COIs where industry leaders discuss topics that can benefit both their businesses and clients. Invite 20–100 top professionals and offer them valuable education from experts, showing your connection to the best in the field.
Share a summary or article based on the summit’s content. This creates an additional opportunity for exposure and positions you as an ongoing resource.
4. Educate Through White Papers or a Book
Busy COIs crave valuable insights. Offer them education in white papers, articles, or even a book where you share strategies to help them enhance their practice. Whether you’re covering investment tips, offering a deep dive into industry trends, or sharing client stories, focus on providing actionable insights that benefit their clients and strengthen your relationship.
5. Maintain Consistent Communication
Your referral network thrives on regular, meaningful communication. Aim to connect with each COI 20 times a year through phone calls, face-to-face meetings, and events. A monthly COI-focused newsletter featuring industry insights, case studies, and resources can keep you top-of-mind and demonstrate your ongoing value to their practice.
This strategic communication ensures you're always in the loop and fosters long-term, mutually beneficial relationships.
Conclusion: Build Confidence and Long-Term Relationships
Success in generating referrals relies on demonstrating your expertise, commitment to client service, and willingness to educate. COIs need to trust that working with you will enhance their own professional reputation. Building this confidence takes time, but by consistently applying these strategies and nurturing relationships with authenticity, you’ll see the referrals—and your network—grow.
Related: Stop Sharing, Start Solving: Delivering Real Value to Your Audience