The Power of Strategic Networking
This is the season for social prospecting and strategic networking. There probably isn’t a better time to rub shoulders with affluent investors, whether they’re clients, prospects or strategic referral alliances. The holiday season is upon us, and yet somehow, for some reason most financial advisors do not understand the importance of social prospecting and strategic networking. Which is probably one of the reasons so many advisors struggle at Rainmaking.
The following is a real story of social networking under pressure. I’m going to let Stephen Boswell, one of our top-notch performance coaches, share a coaching experience with a veteran advisor who had moved his family across country and is now rebuilding his practice.
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Portland: Ring Ring – I answered the phone to find Jim, an advisor who, like many others, desperately wanted to build his practice. He said, “I just sold my practice in Tennessee, I moved to Portland, and I’m starting all over”. I assured him we’d seen this situation many times, yet he insisted, “You don’t understand, I really need to build my practice. I convinced my wife to make the move and she was against it all the way. I promised her that I would rebuild our lifestyle, but with this market downturn I think I’m in over my head.”
The market downturn was the least of Jim’s worries. His poor sales skills were a much bigger issue, hence his call to our office. Convinced we could help, he entered into our Performance Coaching and committed himself to doing everything possible to rebuild his practice the right way.
Jim was fighting an uphill battle. Even though his new market was wealthy, his in-town connections were minimal. They sparsely consisted of two clients and a couple of wholesalers. In his own words, he was forced back into "rookie mode" -- with one clear exception. He knew full well that the way he built his first practice wasn't the way to rebuild in today's environment. Times have changed and the affluent are more cynical and skeptical than ever. Any attempt at cold calling just wouldn't bring in the type of clients that he was now capable of servicing. Jim had to do something – and fast.
I'm about to outline one of the core methods used by this advisor to start the rebuilding process with a bang. This will be useful, not only for rookies or those rebuilding a practice, but for anyone looking for more affluent clients. The answer, believe it or not, is strategic networking.
Notice that I said “strategic” networking. This isn’t your ordinary meet and greet or card-swapping party. This is getting on the affluent playing field, going where the affluent go, doing what the affluent do. This is your entry point for strategically (and seamlessly) selling your professional services.
Granted, this seems like a pretty basic principle. Which begs the question, why do so many people have a negative feeling about networking? The main reason is that most people aren’t good at networking.
Strategic networking is highly effective. We hear it every day in our coaching and we see it in our research. 35% of advisors brought in at least one new million dollar client last year through networking. If everyone really networked the right way, we know this statistic would be far higher.
Getting Started
Get involved with 2 to 3 strong networking activities. This could be at a weekly poker group, a Rotary club, a country club, a charitable organization. Look for groups that:
• Put you in contact with affluent prospects
• Have regular meetings – once per quarter isn’t enough interaction to build
meaningful relationships
• Give you time to interact with people at the meetings/events
• Will allow you to get involved; showcasing your competence
• Involve the kind of people and activities that you enjoy!
There is a six month rule of thumb regarding social networking. Develop relationships, get involved and make a good impression before proactively marketing your services. So…
For the first six months, ease your way into these groups, become involved and think in terms of:
1. Targeting specific people that fit your ideal client profile.
2. Developing meaningful relationships with them.
3. Unless they bring up business before then, work hard for six months then
start proactively putting them in your pipeline.
Jim understood the task at hand; he had to start making a footprint in the new community that he’d targeted. He started reaching out to various charities and community groups that would allow access to the movers and shakers. After a half dozen calls and a handful of trial meetings, he had a much better idea of where the affluent congregated in his community. Not to mention, within his first month (not six), he landed a $1.2mm client (was going through a divorce and needed help), connected with the top real estate agent in town (a great COI), and played three rounds of golf with an Indy racing team owner. The last time we touched based with Jim he estimated a little of $10mm in his pipeline as a result of his networking efforts. Was that a bit of social prospecting and strategic networking? You bet.
-----------------------------------------------------------------------
Most likely your situation is much less stressful than Jim’s – however, the importance of social prospecting and strategic networking must not be overlooked. Think in terms of social holiday lunches, connecting with people in the organizations where you are a member, and accepting invitations to holiday events.
Whenever you are in a social setting, defenses go down and your Rainmaking skills can work wonders.
The following is a real story of social networking under pressure. I’m going to let Stephen Boswell, one of our top-notch performance coaches, share a coaching experience with a veteran advisor who had moved his family across country and is now rebuilding his practice.
----------------------------------------------------------------------------------
Portland: Ring Ring – I answered the phone to find Jim, an advisor who, like many others, desperately wanted to build his practice. He said, “I just sold my practice in Tennessee, I moved to Portland, and I’m starting all over”. I assured him we’d seen this situation many times, yet he insisted, “You don’t understand, I really need to build my practice. I convinced my wife to make the move and she was against it all the way. I promised her that I would rebuild our lifestyle, but with this market downturn I think I’m in over my head.”
Jim was fighting an uphill battle. Even though his new market was wealthy, his in-town connections were minimal. They sparsely consisted of two clients and a couple of wholesalers. In his own words, he was forced back into "rookie mode" -- with one clear exception. He knew full well that the way he built his first practice wasn't the way to rebuild in today's environment. Times have changed and the affluent are more cynical and skeptical than ever. Any attempt at cold calling just wouldn't bring in the type of clients that he was now capable of servicing. Jim had to do something – and fast.
I'm about to outline one of the core methods used by this advisor to start the rebuilding process with a bang. This will be useful, not only for rookies or those rebuilding a practice, but for anyone looking for more affluent clients. The answer, believe it or not, is strategic networking.
Notice that I said “strategic” networking. This isn’t your ordinary meet and greet or card-swapping party. This is getting on the affluent playing field, going where the affluent go, doing what the affluent do. This is your entry point for strategically (and seamlessly) selling your professional services.
Granted, this seems like a pretty basic principle. Which begs the question, why do so many people have a negative feeling about networking? The main reason is that most people aren’t good at networking.
Strategic networking is highly effective. We hear it every day in our coaching and we see it in our research. 35% of advisors brought in at least one new million dollar client last year through networking. If everyone really networked the right way, we know this statistic would be far higher.
Getting Started
Get involved with 2 to 3 strong networking activities. This could be at a weekly poker group, a Rotary club, a country club, a charitable organization. Look for groups that:
• Put you in contact with affluent prospects
• Have regular meetings – once per quarter isn’t enough interaction to build
meaningful relationships
• Give you time to interact with people at the meetings/events
• Will allow you to get involved; showcasing your competence
• Involve the kind of people and activities that you enjoy!
There is a six month rule of thumb regarding social networking. Develop relationships, get involved and make a good impression before proactively marketing your services. So…
For the first six months, ease your way into these groups, become involved and think in terms of:
1. Targeting specific people that fit your ideal client profile.
2. Developing meaningful relationships with them.
3. Unless they bring up business before then, work hard for six months then
start proactively putting them in your pipeline.
Jim understood the task at hand; he had to start making a footprint in the new community that he’d targeted. He started reaching out to various charities and community groups that would allow access to the movers and shakers. After a half dozen calls and a handful of trial meetings, he had a much better idea of where the affluent congregated in his community. Not to mention, within his first month (not six), he landed a $1.2mm client (was going through a divorce and needed help), connected with the top real estate agent in town (a great COI), and played three rounds of golf with an Indy racing team owner. The last time we touched based with Jim he estimated a little of $10mm in his pipeline as a result of his networking efforts. Was that a bit of social prospecting and strategic networking? You bet.
-----------------------------------------------------------------------
Most likely your situation is much less stressful than Jim’s – however, the importance of social prospecting and strategic networking must not be overlooked. Think in terms of social holiday lunches, connecting with people in the organizations where you are a member, and accepting invitations to holiday events.
Whenever you are in a social setting, defenses go down and your Rainmaking skills can work wonders.
posted by Matt Oechsli at
1:33 PM
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