A Marketing Guide for RIAs: Part 7 ? Implement a Centers of Influence Referral Strategy
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This is part seven of a ten part series on marketing an RIA. Read A Marketing Guide for RIAs for a full overview. To view the installments in this series, select “RIA Marketing Guide” in the left margin.
Leveraging relationships with other professionals, or centers–of-influence (COIs), is an effective way to generate new clients. Instead of chasing one client at a time, one COI relationship can lead to multiple clients. If you are successful in developing a COI referral strategy, the leads you receive will be warm and qualified. While a COI referral strategy can be lucrative, it is a long-term approach that can take years to successfully develop.
In order to start your own COI strategy, follow four steps:
Step 1: Meet new COIs
Whether you have existing relationships with qualified COIs or are starting from scratch, meeting new professionals on a consistent basis will create new opportunities for you. There are several strategies you can utilize to meet new COIs:
- Attend networking events – Join professional associations for CPAs, attorneys and other COIs and attend their events to meet dozens of professionals.
- Ask clients for introductions to their professionals – Ask your clients for their CPA and attorney and request permission to call those professionals to introduce yourself.
- Host CE courses – Create your own continuing education courses for the professionals you are trying to reach, and pitch it to professional associations. You can also host your own live or online events and promote them by purchasing email/mailing lists.
- Utilize LinkedIn – Send messages or InMail to professionals you find through the site’s search function or LinkedIn groups.
Step 2: Educate COIs
To generate referrals, it is essential that COIs clearly understand what you do so they can refer qualified prospects. You can explain your services during a meeting or provide them with a marketing piece that summarizes the information. Whether you decide to explain this verbally or in writing, be sure to include the following information:
- Market niche or ideal client – Describe the types of clients with whom you work.
- Value proposition – Describe how you help clients and what makes you different from other advisors.
- Services – List the specific services you offer.
- History – Explain the history of your firm and its mission.
- Bios & Credentials – Provide a biography about the firm’s advisors and any information that adds to the firm’s overall credibility.
- Process – Explain the process a new client would expect to go through.
