Journal of Financial Planning: March 2024
Kristine McManus is chief adviser growth officer at Commonwealth Financial Network, member FINRA/SIPC.
JOIN IN THE DISCUSSION: Discuss this article with fellow FPA Members through FPA's Knowledge Circles.
FEEDBACK: If you have any questions or comments on this article, please contact the editor HERE.
Click HERE to read this article in the DIGITAL EDITION.
We often work with younger advisers looking to grow their practices and expand their reach. Most of them understand the importance of referrals to their future success, and they’re developing the skill sets necessary to have positive introduction and referral conversations with clients.
While referrals from current clients are a great way to prospect, another effective method is networking—and it’s crucial to build this skill. But networking isn’t simply going to a meeting and handing someone a business card: that won’t do much to advance you. When it comes to networking, think first about building a relationship with someone, not selling something. Let people get to know you and build bonds the way you would with any new friend. Ask them questions about themselves, what they love to do, or the causes they’re passionate about. It might take a little time, but once people get to know you and how you help people, the referrals should start coming in.
Here are five best practices to help you get your networking off on the right foot.
Think about your approach. CPAs and attorneys can be great centers of influence (COI) for an adviser’s business, as they often have valuable insights into a prospect’s financial situation. But these professionals get pitched to all the time by financial advisers, and they may already have a relationship established with another adviser. So find a solid reason to approach these busy professionals, such as asking about a client you share in common, offering CE credits or a course, receiving a personal introduction from a friend, celebrating the end of tax season, or doing something different to separate yourself from the pack.
Be strategic. Having a plan for networking up front will save you time and energy. First, ensure that you have a clear idea of who your ideal clients are. Once you know that, is there a particular COI who could refer you to these types of clients? One adviser wanted to work with business owners and found that joining the local chamber of commerce was incredibly valuable for meeting her ideal prospects. Another adviser in a coastal community wanted to develop a niche with boat owners. For him, the marina owners and operators in his area proved to be his most valuable COIs.
Give yourself time. Create a plan for yourself that sets aside specific days or times for networking when you will reach out and connect with friends, colleagues, or prospects. Realistically, if the time isn’t booked on your calendar, it may not happen; there’s always something more immediate that will require your attention. And remember, you can network in a variety of ways—phone, email, social media, events, or one-on-one conversations. The medium doesn’t matter as much as the activity does.
Leverage social media. Social media can help you expand your reach exponentially. If something you post is liked by others and picked up and reposted by them, you appear in front of a wide new pool of people without spending extra time and energy. Because it’s low or no cost, tools like LinkedIn, Instagram, and Facebook offer great opportunities for next-gen financial advisers to build a presence and scale their marketing and messaging easily. Please consult your member firm’s policies regarding social media prior to utilizing the features/platforms discussed.
Look for additional opportunities.
- Join groups (including virtual ones) that are relevant to your ideal clients, such as a trade group or organization. A quick Google search can give you a list in your area.
- What contacts do your friends and family have? Start taking an interest in where they work and who they interact with, as a personal connection makes an introduction much easier.
- Look for charities and organizations that you have a genuine interest in. If you love the outdoors, join a wildlife group, or look for an opportunity to volunteer locally.
- Think about the professionals your ideal clients may work with and create a specific center of influence. For example, architects, home builders, realtors, interior designers, and mortgage lenders may have many relevant points of connection.
For next-gen advisers looking to develop their business, strategically networking and building bonds can offer great opportunities. Who knows—your next great client could be right next door.