From hairdressers to horse brokers, advisors can add value through an extensive referral network for clients.PeopleImages/iStockPhoto / Getty Images
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Advisors looking to expand their professional networks beyond lawyers and accountants need to consider their clients’ needs beyond finances.
Grant White, portfolio manager, investment advisor and managing partner of Endeavour Wealth Management at iA Private Wealth Inc. in Winnipeg, says the secret to building centres of influence (COIs) is for advisors to look inward at their interests. He calls this “passion prospecting.”
For example, an advisor in Mr. White’s group is an avid fan of Formula One and often hosts events for local enthusiasts featuring racing experts. Through those gatherings, he’s met several quality referrals.
“What started as a passion has now turned into a business-generation tool,” he says. “You’re going to find other like-minded people interested in the same things.”
Years ago, Mr. White made the mistake of pursuing hobbies that he felt were good for business. He took up golf, considering the sport the perfect forum for building connections. But as a newcomer, it was hard for him to embrace it – he just didn’t like it enough.
Instead, his charity endeavours such as the United Way were more of a fit as he worked with many different professionals on a like-minded project. Some ended up sending referrals to him that were well-known in community circles.
For Samantha Sykes, senior investment advisor with Sykes Wealth Management at Raymond James Ltd. in Toronto, it’s not just about building like-minded relationships but understanding what her clients may require outside of their finances, tax planning and legal matters.
“Your clients have lives outside their portfolios, so I think of other services they may need,” she says.
Ms. Sykes serves a clientele of executive women, predominantly, some of whom are going through a divorce or separation. She has found many of them appreciate help from professionals such as a high-level matchmaker, real estate agents, health-care professionals, sommeliers and even hairdressers. She has made a point to network with different types of professionals during the late spring and summer months.
“We have an opportunity to be advisors who can quarterback our clients’ lives,” she says. “I want them to feel they can come to me for any recommendation.”
That’s also the thinking behind the extensive network Brianne Gardner, senior wealth manager and co-founder of Velocity Investment Partners at Raymond James Ltd. in Vancouver, has cultivated: a specialized travel agent, mortgage brokers, real estate agents, and even a concierge who can source Taylor Swift concert tickets or a hard-to-obtain restaurant reservation.
But she says a horse broker is the most unconventional example. Her client wanted to bring a dressage horse to Canada from Spain, so she worked with a broker to make it happen.
“It’s just a value-add that we offer to our clients and that we feel differentiates us from a servicing perspective,” Ms. Gardner says.
However, Ms. Gardner vets the professionals who form part of her COI extensively via an interview process, as trust and reliability are paramount.
“We want to make sure they’re someone who provides the same level of service to our clients we do,” she says. “We look at how they communicate. What’s their service level? If it’s just facilitating and doing a transaction, that’s not the level of service we expect and provide for our clients. We’re looking for someone who goes above and beyond and provides white glove, first-class service.”
While most advisors prefer to concentrate on lawyers and accountants, Ms. Sykes cautions against discounting anyone. She’s received referrals to artists from gallery owners, and hairdressers have referred her to corner-suite executives.
“You don’t know who people know,” she says, and a hairdresser’s clients may tell them everything – from whether they’re considering divorce to stock option deals to news about a family member who is dying.
Referrals often go both ways, and Mr. White believes in disclosing those relationships to clients, even though there are no referral fees.
“We’re quite upfront about the professionals that we work with,” he says. “We always talk to the client first about it and as long as they want a referral, then we’ll do the introduction to them either electronically or in person.”
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