Finding success with centers-of-influence marketing

In the search for new clients, many financial professionals are turning to centers-of-influence marketing, which enables them to network with other professionals and grow their business.

When it comes to embarking on centers-of-influence marketing, “there has been a big shift in the last decade in how good alliances are formed,” said John Pojeta, vice president, business development, The PT Services Group, “and I think it’s critical to understand the lay of the land before approaching this valuable opportunity.” Pojeta and Brian Haney, founder and CEO of The Haney Co., recently shared some advice on finding success with this approach.

Pojeta’s first piece of advice is that developing successful centers-of-influence joint ventures requires patience. “These relationships rarely develop quickly, and it can take time to build trust and allow your partner to analyze the benefits methodically,” he said.

According to Pojeta, two types of professionals tend to make the best partners for centers-of-influence joint ventures: CPAs and property/casualty agents, particularly those who don’t want to be involved in money management.

Although there are differences and benefits for each, they both have one thing in common: It is vital to develop a formalized relationship. “In the past,” he added, “these types of alliances were friendly and done over a handshake, but for actual value for both parties, you should look at them with a more critical eye, and at the very least, you should have a plan for revenue sharing (particularly for PLMA states) and joint marketing efforts.”

Working with CPAs

There are a few things to be aware of when it comes to CPAs, Pojeta said. First, it’s smart to position the CPA as the lead in the relationship. Owning the relationship and taking the lead are very important in order for them to maintain the role of trusted advisor.

Next, connect with small, independent firms; large firms will already have in-house advisors, he advised. As mentioned before, CPAs will take a long time to develop this relationship. “Be sure to consider their motivation and benefits for embarking on this relationship, and be sure to align with your audience,” he said.

According to Pojeta, two types of professionals tend to make the best partners for centers-of-influence joint ventures: CPAs and property/casualty agents, particularly those who don’t want to be involved in money management.John Pojeta, PT Services Group

A fantastic way to build this relationship is to develop CPE credit classes, providing your CPA partner with an additional benefit. CPE classes are also excellent for meeting 10 to 12 CPAs who may become great partners, he added.

Teaming up with P/C agents

In terms of P/C agents, there are some additional considerations, Pojeta said. First, P/C agents already are licensed, making revenue sharing more straightforward. Additionally, they are already sales-focused, which can make the development of the joint venture progress more quickly.

On the other hand, P/C agents may not be as well-organized regarding initiatives such as marketing. “Lastly,” he advised, “you will want to look for independent P/C producers, as large firms are frequently more restrictive in permitting outside joint ventures.”

More candidates

In addition to CPAs, Haney has formed successful working relationships with:

» Attorneys. The attorneys Haney has received the most value from are merger and acquisition attorneys and transactional attorneys specializing in helping businesses that are being sold or buying other businesses. “Transactional attorneys have been much better resources for our practice since we too specialize in the small-business marketplace and help our clients build businesses that are highly sellable,” he said.

» Chief financial officer for hire/outsourced human resources. Staying with the small- business theme, other partners that often fly well under the radar are outsourced CFO services and HR specialists, Haney said. “With so many businesses looking to these kinds of providers to support them operationally, finding a good partner here can be a huge benefit to your practice. These professionals often see the ins and outs of the business’s cash flow, employee benefits and even sometimes the commercial P/C insurance,” he added.

» Financial coaches. These individuals have the potential to be a gold mine if you find the right candidate, Haney said. Essentially, he explained, coaches help clients launch themselves financially, addressing critical core needs such as budget and cash flow, getting out of debt, and various other foundational needs.

Once clients achieve their stated goals, they often “graduate” to the next level of financial viability — one that naturally lends itself to a financial advisor who can continue to build off the coach’s good work.

“They also might be a perfect practice partner for those clients who just aren’t ready to work with you yet because they need help with things that might be a bit outside your wheelhouse,” he said.

» Bankers. Forming a good relationship with a few bankers can be an excellent practice synergy to develop. As a former banker, Haney said that he can speak from firsthand experience of how valuable bankers can be. Again, there are some criteria to consider in choosing a good candidate, and the first is to make sure the banker is not part of a banking system that already has its own insurance and investment services, he said.

» Credit unions as well as community and even regional banks also can be good candidates. “To get even more strategic,” Haney said, “find a business or commercial banker who concentrates on working with entrepreneurs and small businesses looking to grow or expand. These can be great relationships where you enhance one another’s capabilities to help the business owner start off on the right footing and grow successfully.”

» Industry influencers. Few professionals (financial or otherwise) know how to develop these individuals, Haney said, and there may not always be ideal candidates that fit this category.
However, he added, here’s how to find out:

“Search for the top podcasts, YouTube channels or blogs read by some of your best clients or even prospects. Ask them who they listen to, the books they read, and even look at the speakers who headline their industry conferences. Often there may be a highly visible person known for their industry expertise, major industry consultant or media expert, and forming a solid relationship with this type of professional could be rocket fuel for your practice. If you do it right, you gain from their visibility and credibility, which has powerful reputational implications you might not be able to develop on your own.”

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].