A Marketing Guide for RIAs: Part 6 - Develop a Networking Strategy

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This is part six of a ten part series on marketing an RIA. Read A Marketing Guide for RIAsfor a full overview.  To view the installments in this series, select “RIA Marketing Guide” in the left margin.

Many advisors groan at the thought of networking as a way to generate new business.  They think networking means they have to attend a BNI or LeTip breakfast meeting and exchange referrals with complete strangers – many of whom are engaged in multi-level marketing schemes.  

In reality, networking is one of the most effective and inexpensive business development activities an advisor can utilize.  By effectively networking, you can expect to see the following benefits:

1. Raise awareness about your business and expertise
2. Create new marketing and networking opportunities
3. Prospect for ideal clients
4. Develop referral sources
5. Build relationships
6. Create word of mouth marketing

In order to utilize networking, you need to have a well thought out strategy.  Here are five steps to developing your own networking strategy to acquire clients and develop referral relationships:

Step 1: Define your target

There are thousands of networking opportunities available to you.  The key to success is to create a focused strategy which ensures that you are spending your time and money wisely.  The first step is to identify the people with whom you want to network.  Networking without a clear focus will lead to frustration and failure. 

You should network with two main groups: 1) your target market/ideal client; and 2) centers of influence (COIs) who can provide you access to your target market.  Use the boxes below to list the people you hope to meet through networking.

Step 2:  Identify Networking Opportunities

Once you have identified exactly who you want to meet, research where these people congregate.  Don’t limit your search to traditional networking events like BNI or Chamber of Commerce.  Consider professionals associations, charitable organizations, social clubs, community groups, conferences and alumni associations, to name a few. 

Networking can take many forms, including attending an event, joining an association and volunteering on a committee.  The more creative you are in finding different networking opportunities, the less likely your competition will be there.   If you aren’t sure where to find your target market or COIs, use LinkedIn as a research tool.  Find a prospect or COI in your network you would like to replicate and see which associations and groups they list on their profile.  These may be organizations you should consider joining as well. 

You may also want to consider attending casual events that are posted on Twitter (Tweet Ups) and Meetup.com.  Once you have completed your research, use the boxes below to write down the networking opportunities you will consider attending to meet both your target market and COIs.

Read more articles by Kristen Luke