If centers or influence or COIs aren’t already the VIPs of your referral strategy, they should be. According to a recent survey of financial advisors in US, more than 80% said that referrals from other professionals were a very important source of getting new clients. The survey was conducted by Raymond James, an investment firm based in US.
Who are COIs?
COIs are established professionals and community groups whose strong reputations and influence can provide an excellent gateway for referrals. COI is an individual who is well respected, socially involved, active in the community and willing to advance personal connections.
Where to find COIs?
Participants in the survey emphasized the importance of joining outside networks to meet centers of influence, especially for younger advisors. They recommend looking into community groups like:
- Country clubs
- Rotary clubs
- Cultural organizations (e.g., museums, theatres, etc.)
- Kid’s activities requiring parental support (e.g., sports day, annual functions, etc.)
Making introduction
Once you have made the connections, it is time to ask them to make introductions. Many advisors say the key to initiating a referral lies in timing, knowing when to tap into those networks. Generating referrals from professionals is a client strategy first and a business development strategy second.
When you target specific prospects and then search for “human chains” that connect them, you will soon become acquainted with centers of influence (COIs) and networks.
How to work within a network
While working within a network, your goals could be as follows:
- Identify COIs who are well known and respected in the network.
- Learn more about the publications, trade organizations and lingo of the network (“talk the talk”).
- Identify specific target prospects in the network. Revise your ‘Target Prospect List’ and profiles, if necessary.
- Determine the best ways to gain introductions to specific target prospects.
Another whitepaper from Advisor Groups says that you can find your COI through your LinkedIn account. “Your “network” is defined as a group of users that each member can contact through connections up to three degrees away. Your first degree connections are people whom you know personally. A second degree connection is a person to whom you have been introduced by first degree connections. A third degree connection is introduced by a second degree connection. You can contact anyone within the entire circle (first, second or third degree connections) through the network,” states the white paper.
Gajendra Kothari of Etica Wealth Advisors believes that having contacts with the community groups and participating in such cultural activities helps you to get quick referrals.
Another Bangalore based IFA Deepesh Mehta has also got referrals by being active in community groups. “Various cultural organizations help you meet new people who can be your strong center of influence to get more referrals,” advises Deepesh.
