A good centre of influence can be an asset to your business, providing referrals for you and a valuable service for 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.

Financial advisors who start referral relationships often become disappointed because they believe they are referring clients frequently but do not receive any in return, says Kevin Toney, marketing coach with Primetime Promotions in Winnipeg. To create a mutually beneficial referral relationship, look for COIs with these attributes:

> A Similar Client Base

A professional who has a target market that’s similar to yours is more likely to refer clients who are a good fit for you.

“Look at the client base of that [COI] 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 your ideal client profile, and be able to articulate that profile to others. So, if your target market is retiring business owners, look for a COI who serves retiring business owners.

> A Similar Philosophy

“Find a company or individual who shares your values,” Toney says, adding that if your core business value is excellent customer service, a COI who doesn’t take that approach can reflect badly on you.

> A Similar Business Model

Look for a business that is similar in size and structure to yours 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 than you [would] with a huge accounting firm. You can even share business ideas and strategies.”

> 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. You must also trust and respect that person.

> A Willingness To Share Expertise

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 — and vice versa.

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

> Broaden Your Search

Although networking with accountants and lawyers is a good start, there are other professionals, such as real estate agents and elder planners, you can work with to create a referral network.

Start your search for COIs by looking at your clients. Your own book of clients could contain some valuable potential COIs, Toney says. Consider clients who are professionals or business owners with whom you could develop a referral relationship.

So long as they can help you connect with your target market, says Levitt, a COI could be anyone.

Developing COI arrangements can be a long process, so be patient. It can take two or three years to build a productive relationship with a COI, Levitt says. That’s why it’s important for you to keep in contact and to stay top of mind with a prospective COI, just as you would with a prospective client. So, send potential COIs your newsletter or hold a seminar solely for COIs.

To keep your strategy on track, Toney says, meet regularly with the COI to discuss what has happened so far in the relationship and what the next step will be for your joint referral strategy. IEr