To build an effective referral strategy you must start with a plan about the kinds of professionals you intend to partner with.
Take a strategic approach when developing relationships with centres of influence, says Terrie Wheeler, founder of MarketYourAdvisoryPractice.com in St. Paul, Minn. Your objective is to build a lucrative referral network in which your contacts understand your ideal client profile.
While networking with accountants and lawyers is a good start, there are other professionals you can work with to create a referral network. Follow these tips to help you find the right COIs for your business:
> Check out your client list
Start your search for COIs by looking at your own clients.
Advisors often look externally first for a COI instead of looking internally, at their own client bases, says Kevin Toney, marketing coach with Primetime Promotions in Winnipeg.
Consider clients who are professionals or business owners with whom you could develop a referral relationship, he says.
> Think outside the box
Consider everyone in your network — not just accountants and lawyers but gardeners and nannies — who might be able to introduce you to the right client.
So long as they can help you connect with your target market, a COI could be anyone, says April-Lynn Levitt, a coach with the Personal Coach in Calgary.
> Work with a marketing partner
Once you have found a professional who shares your goals, consider a joint marketing initiative with that contact, Wheeler says.
You could co-write articles for a local newspaper with your new marketing partner. Or you might host a seminar together, to which you each invite a large group of clients and prospects.
> Give it time
Developing COI arrangements can be a long process, so be patient.
It can take two or three years to build a relationship with a centre of influence, says Levitt. That’s why it’s important to stay top of mind with a COI, just as you would with a prospective client.
Keep in contact by sending potential COIs your newsletter, she says, or holding a seminar exclusively for COIs.
> Set up a routine
Keep your referral strategy on track by consistently meeting with your COI.
Make arrangements with the COI to meet regularly, says Toney. It could be once a week, every two weeks or once a month. At those meetings, discuss what has happened so far in the relationship and what will be the next step for your joint referral strategy.
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