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Advisors have relied on centers of influence (COIs) to build their businesses.
Through relationships with lawyers, accountants, and other financial professionals, it’s been relatively easy to get referrals.
Not anymore.
Consistent referrals from COIs are drying up.
It is more and more difficult to get new COIs to trust you and start sending you referrals.
If that is what you are seeing, you’re not alone.
Marketing organizations and other “mother ship” industry leaders have been preaching the COI model as the best way to build an advisory business.
That was appropriate. But that channel to high-net-worth clients has been commoditized.
When a channel becomes commoditized (everyone is told to use it), it stops working for those who weren’t early adopters.
In theory, finding a COI, approaching them with the message that you can add value to their clients in ways they can’t, is a “no brainer” proposition.
And it is, theoretically.
The majority of COIs have already been approached by many advisors with the exact same proposition.
They’ve heard the pitch, and they already have a relationship with another advisor.
Someone else got there before you.
Are they going to switch from their current referral partner advisor to you?
Maybe, but unlikely, unless you’re willing to court them for many months, maybe even years.
If you believe (as many prominent advisors tell you) that this is most efficient new-client-acquisition model to grow your business, then ask them how many referrals they have received from their COIs, consistently, every month for the last 12 months.
They’ll probably put it back on you to say: “If you work harder with more outreach, eventually you’ll get there.”
That’s the old “you’re the problem” switch, deflecting reality.
Here's what you need to know: The COIs are a “middle man” model. You have no direct access to your ideal clients, unless the COI feels like giving you one of theirs.
To make your business resilient enough to withstand the even bigger seismic shifts coming, you can no longer rely on someone else’s influence for access to new clients.
You must become your own center of influence.
You must become a trusted authority to your ideal client market, so they sit up and pay attention to you.
And if you’ve been relying on COIs to get where you are, wean yourself off that dependency as soon as possible.
Learn to engineer a new client-acquisition system built on your own authority, not someone else’s.
Your authority and influence, when packaged correctly, can never be commoditized.
Ari Galper is the world’s number one authority on trust-based selling and is the most sought-after high-net worth/lead generation expert for financial advisors. His newest book, “Trusted Authority” has become an instant best-seller among financial advisors worldwide – you can get a free copy of Ari’s book here and, when you click the “YES” button in the order form, you’ll also receive a complimentary “get new clients” lead generation consultation. Ari has been featured in CEO Magazine, Forbes, INC Magazine and the Australian Financial Review. He is considered a contrarian in the financial services industry and in his book, everything you learned about selling will be turned upside down. No more chasing, no pressure, no closing.
Read more articles by Ari Galper
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
