As an advisor, have you ever had a business relationship with a CPA or an attorney that is the professional equivalent of unrequited love? Do you find that there are some business professionals to whom you have provided multiple introductions, yet receive very little in return? Generally, are you dissatisfied with your network, or lack thereof, of other trusted advisors?
You are not alone. If fact, these conditions are pretty commonplace in the dynamic between advisors and other business professionals. At ClientWise, we have conducted our own research study into how financial advisors interact with other professional advisors, and have identified five specific misconceptions:
Misconception #1: The primary reason to build a network of professionals is to receive reciprocated introductions.
Reality #1: The primary motivation to build a network is to comprehensively support clients and thus allow you to fulfill your role as a wealth advisor. Introductions are a byproduct of this effort.
Misconception #2: CPAs and attorneys are the primary professionals with whom you should network.
Reality #2: The network of professionals that you work with should be a function of your clients served, which may or may not lead to networking with CPAs and attorneys. For example, we work with one advisor who is raising $30 to $40 million annually by working with business owners who have recently sold businesses. His professional network is skewed to business brokers and business valuation specialists, because that’s what his type of clients need.
Misconception #3: When you offer up referrals of your own clients to another professional, they will reciprocate in kind.
Reality #3: Until you have had the larger conversation about how both parties might benefit from collaboration and the protocols are in place, you cannot have a bilateral advocate relationship.
Misconception #4: There are certain times of the year when contact with other trusted advisors should be avoided at all cost, e.g. CPAs in April.
Reality #4: In truth, your clients will need other trusted advisors throughout the year and a growing number of clients expect you to facilitate those connections as a wealth advisor.
Misconception #5: With regard to your network of business professionals, the more, the merrier.