Build Networks. Develop powerful referral partnerships. The SunAmerica Client Referral Program

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1 The SunAmerica Client Referral Program Build Networks Develop powerful referral partnerships For financial professional use only. Not to be used with the public.

2 Why Form Referral Alliances with Other Professionals? More than 60% of advisors reported that referrals from other professionals accounted for their five best new clients in the previous Seeking out like-minded professionals to share referrals with can be a powerful business-building opportunity that, if done correctly, can lead to a significant increase in clients. Consider the following: Affluent clients are much more apt to work with you if they were referred by their trusted advisor, lawyer or CPA. Trusted advisors and Centers of Influence (COIs) can deliver pre-vetted clients who immediately have a need for your services, considerably shortening the sales process. Establishing a strategic approach to meeting new partners and learning their businesses can help deliver enhanced results. The SunAmerica Client Referral Program brings together many of the best practices of top referral experts from around the country, including Bill Cates, CSP, CPAE and President of Referral Coach International. The Build Networks module details how to identify and target potential alliances, provides tangible strategies for assessing and qualifying partners and offers insight into how to build and cultivate these long-term referral partnerships. 1 CEG Worldwide Build Networks

3 Develop Powerful Referral Partnerships in 3 Simple Steps Are you getting the most out of your referral alliances? Do you have a select list of partners that continually refer some of your top clients every year? This type of system goes beyond networking and certainly takes some practice, but can be one of the most efficient and effective ways to take your practice to the next level. Build Networks helps you integrate a consistent approach to targeting COIs and establishing referral partnerships. The 3-step process is designed to help you: 1. IDENTIFY key partners and COIs while refining your message and approach. 2. QUALIFY potential partners to see if there is a shared vision and a good fit this may take at least a couple of meetings. 3. CULTIVATE partnerships to better understand each other s business and value proposition this is when partnerships can become highly profitable. The Referral Partnership Process 1 IDENTIFY TARGET key partners and COIs SEGMENT your list and refine your message 2 QUALIFY CONTACT top targets and make introductions SHARE ideas and case study solutions 3 CULTIVATE REFER clients while emphasizing your value proposition DEVELOP relationships with ongoing meetings The SunAmerica Client Referral Program 1

4 1 Identify Potential Strategic Partners Who Should You Meet? The most commonly targeted professionals are CPAs and attorneys who handle financial matters. You can also consider other types of professionals in your local community, such as investment bankers, realtors and HR directors. Focus on Your Top Clients You want to seek out like-minded professionals who share similar client bases, so it makes sense to start with your top clients. Ask clients for permission to meet with their professional advisors. Meeting a COI through an existing client makes you an automatic insider. In addition to meeting the other trusted advisors of your clients, you can also look through local industry directories, associations and business journals to find potential partners. In addition, try networking groups and organizations for other opportunities to meet additional professionals. Other options include conferences, charities, memberships in the community, and select social networking sites. Insurance Agents & Long-Term Care Realtors & Mortgage Brokers HR Directors Potential COI Partners Investment Bankers & Business Brokers CPAs Attorneys: Estate, Elder Care, Divorce Referral TIP Be disciplined and proactive about meeting new COIs or strengthening current partnerships. Schedule one meeting or meal per week with a potential COI or current partner. Consistency in this activity area is critical to building relationships and generating more referrals. Set a goal of how many and what types of COIs you d like to have. How many professionals do you want to have as part of your own personal sales force? Then go about methodically meeting these individuals. 2 Build Networks

5 How to Approach Your Clients Sample Scripts COORDINATED EFFORT George, I believe it s important to ensure that your financial planning is a coordinated effort. So, I m thinking that now might be a good time for you to introduce me to your CPA. I d like him/her to be fully aware of the work we ve done together. As your situation changes over time, we can work together to make sure your plan is the best plan possible. Would you be open to me giving him/her a call? CPA TAX IMPLICATIONS Mary, most of what we discuss over the course of our relationship will have significant tax implications. Because of this, I believe it is vital that we work closely with your CPA on your overall financial plan. I m thinking it might be a good time for you to introduce me to your CPA. I d like him/her to be fully aware of the work we ve done together as well as what we have planned moving forward. Would you be open to me giving him/her a call? ESTATE PLANNING ATTORNEY WEALTH TRANSFER John, as we move forward in implementing your financial plan, we will eventually encounter some wealth transfer issues. With that in mind, I believe it s important for us to ensure a coordinated effort with your Estate Planning Attorney. I d like him/her to be aware of some of the work we ve done and begin discussing the best plan for a transfer of wealth. Would you be open to me giving him/her a call? The SunAmerica Client Referral Program 3

6 EXERCISE 1 Develop Your Ideal Partner Profile Objective: Create an Ideal Partner Profile to help pinpoint the right professional partners. Action Plan: Write down the key characteristics that define the perfect A+ partner. Make sure to include a description of the type of firm, clients served, size, location, revenue and business model, as well as the overall vision and approach of the business. Also include personality traits, community group involvements, personal interests and where you may run across this ideal partner. Example: Who Is the Best Fit for Your Business? Ideal Partner Profile Category Firm Type Size Client Base Leadership Approach Partnerships Vision Referral Approach Ideal Characteristics Regional CPA firm 1-5 CPAs 200 clients per CPA, with many key industry leaders and affluent investors Founder is similar in age and interests, but forward thinking in marketing and management style Takes a holistic approach not just a tax shop Outsources trust and estate planning with an estate attorney Vision aligns with comprehensive planning and non-transactional advice long-term partnership with each client Favors using event marketing to make personal introductions Referral TIP REFERRAL TIP One potential way to get introduced to a client s CPA is to explain to clients that virtually all the financial work you do together will have an eventual tax implication and that it s critical to share your plans with their CPA or attorney. Let clients know that you work most effectively knowing the strategies of their other advisors. Not only are you getting a foot in the door with the advisor, you re also adding depth to the service you provide to the client. 4 Build Networks

7 EXERCISE 2 Create Your Target List Objective: Create a target list of professionals to contact. Action Plan: Write down 25 potential COI targets and segment them according to potential similar to what you did with your clients. Key factors could be that you already have met the person or talked about them with one of your clients or you know they are receptive to referrals. At this point, the list could include a specific client s CPA, even if you haven t spoken to that client yet. Rank these potential targets by both referral potential and your current relationship warmer if you have met the person or know them through a client. The partners who end up in the upper left quadrant will be your top referral targets and the leading candidates for introductions. Example: Who Is an A Target? Partner Segmentation Score Card Warmer Existing Relationship Colder Higher Potential John Smith s CPA John Smith s Attorney Marion Wilson s Estate Planner Bill Johnson (area CPA) Michelle Lawrence (Attorney) George Phillips (Insurance) Abby McDonald (Attorney) Rich Jones CPA Smith, Jones, & Anderson, LLC (Law) Christian Adams (Banker) Melissa Silver (LTC) Billups, Cheney, & Walker, LLC (Estate Attorneys) Mitchell Chin s CPA Maurice Marin (Attorney) Jennifer Smith (Insurance) Lower Potential Richard Murphy s Insurance Agent Michael Dickerson s Estate Attorney John McKay, CPA Bob Nicholson Insurance Steve Good s Attorney Brittney Alexander (HR) Steve Burton (Consultant) Phil Smith (LinkedIn Group Leader) Bill Berman (CPA) Louise Bonerman (Estate Attorney) The SunAmerica Client Referral Program 5

8 2 Qualify Potential Partners A Systematic Process Just like with potential clients, the process of qualifying referral partners is most efficient when you are prepared and targeted in your actions. There are three key aspects to the qualification process: Preparation Fine tune your story and value proposition Introduction Reach out to introduce yourself and your practice Meetings Meet with the COI to explore the merits of a potential partnership Preparation Formalize Your Plan Now that you have a list of potential referral partners and know the key aspects you are looking for in a COI partnership, it s time to understand your goals and figure out what your communications approach will be. Taking a systematic approach to meeting and nurturing COI relationships can be a great benefit. Of course, it should be natural, but with a plan intact, you can begin to formalize the relationships themselves. Revisit Your Value Proposition When talking about your practice, be prepared to explain not only what you do, but also why you are unique. If the CPA or estate attorney doesn t fully understand your value, he/she may dismiss you as a resource. It takes time and practice to communicate the strengths and differentiating factors of your practice. Focus on answering the following questions: What do I do and why do I do it better? Who do I work with and serve best? How do partners benefit from working with me? In preparing to talk to COIs about referral partnerships, revisit your elevator story and value statements and make any adjustments that are specific to COIs. The ability to effectively convey your value in a memorable fashion will give the COI the information and confidence needed to explain how you do things differently to his/her clients. It may take practice to be able to convey your value immediately, but the goal is for you and your potential partner to have an understanding of each other s practice which can then be passed on to clients. 6 Build Networks

9 Introduction Make Initial Contact The goal of this first contact is to schedule a brief meeting to discuss the referral opportunity. Explain that you have a common client or practice and that you want to discuss the benefits of working together and coordinating an overarching financial plan for the client. Suggest a brief meeting at a convenient location, such as the COI s office, where you can discuss working together in the future. If the COI would prefer to meet over a meal, breakfast is a great option because you re both less likely to be absorbed by other tasks and can focus on the appointment. SAMPLE SCRIPT MAKING CONTACT WITH A POTENTIAL PARTNER Ed, I ve been working with your client George. He speaks very highly of you. By the way, I ve told George that it s my goal to make sure that his financial planning is a coordinated effort. With his permission, I ve placed this call to you to let you know about the work I ve done, and to keep you involved moving forward. Develop a Rapport Much of the success of a referral partnership hinges on how well the two of you get along. While you must convey your competence and integrity in your business, you also need to be affable and accessible. By building a mutual understanding, you can help ensure that you are the first person the COI thinks of when a client is faced with an investment challenge or issue. The SunAmerica Client Referral Program 7

10 Meeting The Initial Meeting The goal is to find partners with similar philosophies, tell them about your business, and learn about theirs. You are looking for the right type of firms and personalities ones that share your revenue, marketing and client service models. Use this opportunity to describe your firm and demonstrate how you can provide added value to both their clients and their business. Ask about their practice and listen sincerely. Explore their practice with such questions as: How did you get started? Where is your firm headed? How would you describe your ideal client? What are the main concerns of your clients? How do you market your practice? What are some of the biggest obstacles you face? What challenges do your clients face? Assess the Meeting After the meeting, reflect on the conversation. Remember, this is a qualifying period for both of you. Was there good chemistry? Did the potential partner exhibit competence and integrity? Is a follow-up meeting necessary in order to really get to know each other s business? Do you share philosophies around client service and other financial issues? If yes, then follow up and schedule a second meeting. Either way, make sure that you thank the potential partners for their time and let them know you will keep them in mind for your clients. Referral TIP Never assume COIs know how to give you referrals in an effective manner. Discuss it with them. Talk with them about how you like to be connected to good prospects. If you are planning to give referrals, ask them how they want to be introduced to prospects. 8 Build Networks

11 The Second Meeting If both of you see the value and benefits in learning more about each other s business, explore the opportunity with another meeting. Tell stories, anecdotes and analogies that support your value proposition. Never assume COIs know your business or how to explain it. Provide additional support for your firm and review any information that is unclear. Also, make sure you can effectively explain what makes your potential partner a better attorney, CPA or agent than the competition. If you have performed client satisfaction surveys, you may want to discuss some of the key findings. Don t Ask for Referrals Yet As you get to know your potential partners, look for compelling ways in which you can add value to their practice and to better serve their clients. However, it s too soon to ask for referrals. You should emphasize that you don t expect to receive referrals at this early stage of the relationship. Referrals are something that you would like to earn over time. Do your homework prior to the second meeting. Consider: What client type best exemplifies your practice? What is the most memorable way you can describe your practice in 30 seconds? What are the most effective ways you've given or shared referrals in the past? Referral TIP The SunAmerica Client Referral Program 9

12 3 Cultivate Partnerships Develop a Strong Mutually Beneficial Relationship This step is where referrals are given and received and long-term referral partnerships are established. Once you are both comfortable explaining each other s business, the ongoing partnership can become the source of many pre-qualified clients every year. Earning Your Partner s Trust In a value-added relationship, your goal is to position yourself as a professional resource and a member of your partner s extended team. You want to become the Advisor of Choice the first advisor your partner thinks of when he/she is talking to a qualified prospect. Once you have reached this point, referrals will develop naturally as a result of a relationship based on trust and value. Continue learning about your partner s business and communicate frequently. The quality of your rapport will instill a greater level of trust and therefore confidence in recommending your services. Work on developing a business friendship. Get to know your COI in ways that go beyond the core work you do. The more you genuinely like each other, the more productive your referral relationship will become. For some very active partnerships, you may want to meet as often as once per month. For other less active partnerships, once per quarter is probably enough. Never assume you are referable in a COI s eyes. And just because you give referrals to your partners, doesn t mean they ll automatically give you referrals. In fact, giving referrals doesn t make you referable. When they truly trust you and understand the value you bring to others, you become referable. Referral TIP Continuing Education Maintain an ongoing two-way conversation and relationship as your respective businesses evolve. Remember, a COI relationship does not need to be reciprocal in terms of referrals. COIs may happily give you referrals because they truly value the work you do and want others to experience your value. The value you bring to them can come in other forms, such as helping with their marketing plan and/or just being a sounding board for their ideas personal or professional. 10 Build Networks

13 Bring Referrals to the Table When you give referrals to COIs, devote special attention to making great connections between them. Introduce clients to your partners in a way that is most comfortable and follow up a few days later to make sure it was a positive connection. Referring one of your clients to a partner can help solidify and improve the relationship with that client when you choose the right partners, you will be a valuable source of positive referrals as well! SAMPLE SCRIPT PROMOTING PARTNERS TO YOUR CLIENTS On a related note, your wealth management goes way beyond investing. It s insurance, estate planning, tax accounting and much more. I work with some very good and talented people attorneys, accountants, tax specialists and insurance agents who could provide you with these services. Do you need help finding a reliable professional in any of these fields? Ongoing Process It s an ongoing process that takes time and effort, but the right strategic partnerships can deliver significant A client referrals that already fit in your Ideal Client Profile. You may want to establish and reference a Referral Partnership Action Plan that includes details and guidelines for each referral source number of meetings, expectations, consistent reporting and follow up. This can help keep you both on track and accountable. Referral TIP Add Value to a Partner s Practice Send Articles & Research: If there are new studies or reports that relate to your partner's practice, forward them to him/her. The COI will appreciate that you are thinking about his/her practice. Contribute to Newsletters: Many partners may be looking for relevant (compliance friendly) investment information and financial market news to share with their clients. Host Joint Events: Bring value to your partner s clients and position yourself as an expert he/she can trust. For a joint seminar, you can also invite your own clients to the event. The SunAmerica Client Referral Program 11

14 Strategies for Success Making Introductions Here are a few methods of introduction you can discuss with each potential referral partner to ensure the best results: The COI introduces you to the client in his/her office, so you are perceived as part of the team. This is the most effective method of introduction. You should convert close to 100% of these introductions into clients. The COI gets his/her client to call you to set up an appointment. With this strategy, the COI has to do a good job of selling you to ensure the client follows through. It's the next-best method, but only if the COI is effective and persuasive. A third option is when the COI does the introduction, then lets you know that his/her client is expecting your call. Receiving Referrals When a partner gives you a referral, be sure to respond appropriately. Here are a few tips on showing your appreciation and turning these referrals into clients: Be efficient If the COI asks you to call a client, do so immediately. Communicate Keep the COI in the loop update him/her on your activity with this new client. Treat the new client like royalty Give the new client exceptional customer service. Be willing to move away from a deal that is not a complete win" for the client. Say thanks When you send a thank-you gift for referrals, it can increase the number of referrals you receive. It s not about the money you spend; it s about the thank you. Recap When the work is done, send a summary letter for the COI s files. (Must get permission from your client.) Say thanks again If possible, get your new client to thank your referral partner. You can also send a joint thank-you note or the two of you can take the referrer out to lunch. 12 Build Networks

15 Upgrade the Quality and Quantity of Your Partner Referrals with a Systematic Process Affluent clients want to find you through professional referrals. In a study of investors with over $1 million in assets, 54% were referred to their advisor through an attorney or CPA while 30% were referred from a client of the advisor. 3 Don t be a financial advisor who isn t committed to referrals as a key source of new clients. Help maximize the number of high-quality referrals that you receive from COIs and strategic partners in 3 simple steps: Identify the best candidates which to establish partnerships Qualify partners to ensure it's the right fit for both of your practices Cultivate the relationship to generate a recurring source of referrals Create a potentially endless flow of pre-qualified leads with the SunAmerica Client Referral Program! Contact your SunAmerica wholesaler or call our Sales Desk at for details. 3 CEG Worldwide. The SunAmerica Client Referral Program 13

16 For financial professional use only. Not to be used with the public. CRMD3 (2/11) Distributed by SunAmerica Capital Services, Inc.