Generating Referrals through Centers of Influence Brian D. Gallary Senior Vice President Head of Wealth Management Consulting 1 1

Source for the majority of new clients 0% 10% 20% 30% 40% 50% 60% 70% Client Referrals Centers of Influence Networking Non-Client Referrals Sponsored Events Source: FA Magazine, 2013. This chart represents financial advisors > $500,000 in revenue.

Source for the best new clients 0% 20% 30% 50% 60% 70% 80% 90% 40% 10% Centers of Influence Client Referrals Networking Non-Client Referrals Sponsored Events Source: FA Magazine, 2013. This chart represents financial advisors > $500,000 in revenue.

Generating business through centers of influence 1) Create a healthy pipeline 2) Identify the “right” referral sources 3) Maintain frequent contact 4) Compete for the business There are four things you need to be able to do to generate business through professional centers of influence First, you need to create a healthy pipeline of professionals Second, you need to be able to identify the right professionals Third, once you identify the right referral sources, it’s about maintaining frequent contact Finally, once you are referred a piece of business, I will share with you how to compete for that business

Generating business through centers of influence 1) Create a healthy pipeline 2) Identify the “right” referral sources 3) Maintain frequent contact 4) Compete for the business So, let’s start with creating a healthy pipeline

Create a healthy pipeline Who do you know in common? The first meeting you have with a professional, is the hardest one to get. They don’t know you and you don’t know them. Your best chance of getting in the door is “who do you know in common” With this in mind, you want to start with your existing client base and capture all of the names of the professionals that are attached to your existing clients. Once you do this, it’s an easy phone call to make.

Generating business through centers of influence 1) Create a healthy pipeline 2) Identify the “right” referral sources Once you get in the door, your main objective is to figure out whether the professional already makes it part of their practice to introduce their clients to a financial advisor when they come across an opportunity. Because the single most important factor in whether someone will refer to you…is do they refer to others already.

Identify the “right” referral sources Three main factors Currently refer today Good rapport Believe you will add value There are really only three factors that determine whether you and a professional will do business together. First, as I mentioned already, do they currently refer today Second, do you have good rapport. If not, your chances of doing business are not great. Third, they need to believe that you will add value to their business. This could be through introductions, referrals or they type of work you are doing.

Identify the “right” referral sources Important Information Are they currently referring today? Who are they referring to? Why are they referring to them? How often? Proactive / Reactive? What is their “process” for referring? Again, the most important factor is determining whether the professional already refers business to others. The best predictor of future behavior is past behavior, so you want to understand if the professional already makes it part of their practice to make introductions.

Identify the “right” referral sources Qualifying the accountant or attorney Direct questions Indirect questions Pre-referral conversation Post referral conversation There are a few ways to qualify the professional First, you can use direct questions. In other words, just ask them directly. Second, you can use more indirect questions. An example of an indirect question will sound like this…”Joe, just out of curiosity, who is it that you most respect in this area when it comes to financial advisors or financial advisors firms? So when you clients have had a need over the last year or two, who is it that you most respect? Third, you can ask them before you send them a referral of your own Finally, for those that you have already referred to in the past, you can just call them up and ask them.

Generating business through centers of influence Create a healthy pipeline Identify the “right” referral sources Maintain frequent contact Once you have determined your “short list” of those that refer and are willing to engage you, it’s then just about maintaining frequent contact.

Maintain frequent contact To be “top of mind” when they have an opportunity The whole reason you want to maintain frequent contact is to be top of mind when an opportunity presents itself to the professional You need to have a process for this. It can not be something you just wing. My process is very simple I conduct 4 meetings per year and each is less than twenty minutes. I always bring them something unique and interesting. I then drop something off to their office and I do this 2 times per year. And, finally, I will send them four customized emails. These emails are about them…they are not about my practice.

Maintain frequent contact Structure of meeting Open Confirm agenda One broad question Body Socratic listening Share ONE message Close Schedule the next meeting When it comes to the structure of my four meetings, it’s very simple I confirm the agenda Ask them a broad question Once they start talking, I will start Socratic listening. You have to be very careful about not guiding them. Once I have listened, I will usually share one message with them about my practice And, then, I will get the next meeting scheduled right then and there. This makes it easier for the professional, so we don’t have to play phone tag.

Generating business through centers of influence 1) Create a healthy pipeline 2) Identify the “right” referral sources 3) Maintain frequent contact 4) Compete for the business After you are referred a piece of business, you will need to compete for that business.

Compete for the business To create a favorable pre-disposition, as early as possible, relative to the other advisors being considered. When you are competing for business, you want to create a favorable pre-disposition, as early as possible, relative to other advisors being considered

Compete for the business Good advisors sound similar Comprehensive wealth management Sophisticated planning for high net-worth individuals and families Work closely with clients to establish asset allocation and spending policies Strategy incorporates a broad, all-asset approach, tactical allocation shifts and risk management overlays Provide multi-generational wealth planning Implementation of wealth transfer strategies and education for next generation Our mission is to provide quality strategies customized to your needs Our goal is to be your primary source of financial advice We develop long-term relationships through a commitment to quality client service High level of service and an ongoing dialogue Regular portfolio reviews and performance analysis You need to create this favorable pre-disposition because good advisors sound similar If you wait to get in front of the client, you are too late

Compete for the business Create a favorable pre-disposition Pre-meeting call Arrival to your building Discovery Affirmation Reflective listening Presentation (first few minutes) I create this pre-disposition in several ways First, I will do a pre-meeting call Second, I will make sure that they have a great experience when they arrive to the building Third, I make sure to increase my use of affirmation (finding the positive in what they have been doing in the past) and reflective listening (using statements of understanding) And, finally, I want to make sure that I start my presentation with the most important aspect of my practice.

Summary 1) Create a healthy pipeline 2) Identify the “right” referral sources 3) Maintain frequent contact 4) Compete for the business Again, these are the four things that will help you generate significant business through COI’s.