A good centre of influence can be an asset to your business, providing referrals for you and valuable service to your existing clients. The key is to find the right COIs — professionals with whom you cultivate reciprocal referral relationships — and that means doing your homework.

“If [advisors] don’t do the planning, then they tend to be disappointed with the results,” says Kevin Toney, marketing coach with Primetime Promotions in Winnipeg. Advisors become disillusioned by COI relationships, especially when they believe they are referring clients frequently but do not receive any in return.

To create a mutually beneficial referral relationship, look for COIs with these five attributes:

1. Similar client base
Look for a centre of influence with a target market that’s similar to yours.

“Look at the client base of that centre of influence to make sure that it is congruent with the types of clients that you’d like to build additional relationships with,” says Terrie Wheeler, founder of MarketYourAdvisoryPractice.com in St. Paul, Minn.

To do that, you must have a clear understanding of who your ideal client is, and be able to articulate that to others. If your target market is retiring business owners, look for a COI who serves retiring business owners. If your target market is IT professionals, look for COIs who serve that market.

2. Shared values
“Find a company or individual who shares your values,” says Toney.

If your core business value is excellent customer service, Toney says, a COI that doesn’t share that approach can reflect badly on you and your practice.

3. Similar business model
Take a look at a business that is similar in size to your own when looking for a COI, says April-Lynn Levitt, a coach with the Personal Coach in Calgary.

“If you’re both small-business people, you’re going to have a lot more in common then you are with a huge accounting firm,” she says. “You can even share business ideas and strategies.”

4. Personal character
When looking at a potential COI, consider his or her personality.

You can’t build a successful relationship strictly on the basis of a person’s ability to provide referrals, Wheeler says. Instead, create a genuine and lasting business relationship by looking for someone you trust and respect.

5. Willingness to share advice
Building a relationship with a COI is about more than just exchanging clients. It’s also a chance to act as a valuable resource to another professional.

A great centre of influence, says Levitt, is one who knows he or she can call to ask you a few questions about your area of expertise with no expectation of payment or business in return. That COI would welcome a similar call from you.

This is the first of a two-part series on centres of influence. Tomorrow: Where to look for COIs.

IE