Cultivating relationships with CPAs, attorneys, and other centers of influence (COIs) can be a powerful marketing strategy for a financial advisory firm—but it’s not without its challenges.

Practically every financial advisor has been educated on the importance of cultivating relationships with bankers, real estate professionals, estate attorneys, trust officers, tax professionals, and other centers of influence who can refer clients and help resolve complex issues.

Indeed, for every $1 spent on cultivating a COI relationship, advisors generate an average of $3 in revenue, according to Kitces Research. The same research shows that, aside from direct client referrals, working with COIs is the most commonly used marketing strategy among advisory firms.

Source: 2022 Kitces Research Study on Advisor Marketing

Moreover, collaboration with outside professionals appears to matter to clients—particularly higher-net-worth ones. A study published in the Journal of Financial Planning found that these clients were more likely than mid-tier clients to report their advisor’s coordination with CPAs and other professionals, reinforcing that multidisciplinary collaboration is part of the service these clients expect and reward.

But what happens when cultivating those relationships isn’t so straightforward? What if competition for COIs in a specific market is intense, making it difficult to stand out? Or what if a market is so small that it’s hard to find COIs with experience in complex matters—and the time and capacity to be responsive? And what if a COI drops the ball—or worse, makes a costly mistake for a client?

To see how these common what-ifs play out in practice, three experienced financial advisors share how they work with centers of influence—finding ways to build productive relationships while making sure their clients are well served.

How do advisors handle the challenges of working with centers of influence?

Larry Mathis, CPFA​ • Financial advisor at Pearson Financial Group • Lake Oswego, OR

“Finding new centers of influence—it’s a long game. There is no, ‘Hey, I’m over here, I’m great at this, refer people to me,’ which is what many advisors start doing. That doesn’t work. It’s about relationships you build over time based on follow-up and trust.

“Many times, some education is involved. I’ve pointed out small or new things to estate planning attorneys and CPAs. They may not know the benefits of a particular strategy, or they may have heard of it but don’t necessarily understand it or have experience implementing it. That makes them appreciate our relationship more because it shows the value that I can bring. I include them on the consult as a trusted advisor for the client.

“You have to stay in touch with these professionals just like you would a client, but in a slightly different way. We might go to lunch and talk about cases I’ve referred to them, and inevitably it comes back to, ‘Well, what did you do with them on your end?’

“Sometimes I’ll ask a question I already know the answer to, just to hear their thoughts. I tell them I’m trying to accomplish something for a client and ask what they would recommend. I may have already worked through it with the client. However, I still appreciate their input because they may have experience doing it another way that could be better or apply in another situation. If they’ve done it differently, that’s great—I can learn. Most COIs enjoy being a trusted resource and knowing you value their opinion and are willing to take additional input.

“A lot of times, it’s procedural. I may recommend something I’ve used before and know works, but I need their legal or professional expertise because of a twist in circumstances. That can turn into a learning opportunity for both of us. There may be multiple solutions, but one approach may help my client a lot more—for example, how something is titled or if we cite it in a certain state.

“When it comes to vetting, it usually starts with a referral—they’ve done work for someone I know, and it’s gone well—or they’re a specialist I need. In one case, I needed a settlement specialist to help with the tax implications on the growth of invested settlement funds for a client, and I was referred to someone by a very trusted resource.

“What would I say to a COI if they botched something or let something fall through the cracks? I may reach out to say my client has run into a bit of a time crunch and that I have another person who can step in. I understand that certain times of year are extremely busy, but the client still has a deadline, and my name is ultimately attached to that recommendation.

“Fortunately, I’ve never had to deal with that. I vet these people thoroughly. We talk about expectations, and I try to have some skin in the game by using them myself before referring them out. You need to be confident that the people you recommend are proactive and highly qualified to avoid slow service—or an outright mistake.

“Over the years, I’ve found that referrals from centers of influence are one of the most effective ways to be introduced to new clients. Those individuals already have a desire to learn more about the services a qualified financial advisor can offer. Being referred by a trusted third party also helps establish a certain level of credibility going into the process.

“This is a two-way street, and I try to reciprocate with referrals of my own. When I do, I ask the person receiving the referral to help me craft a message that I can deliver about their practice and services. I also help those referring clients to my practice with a clear message about who I am, my experience, and the services I can offer.”

Scott Winslow, MSFS, ChFC, CLU, RICP, AEP, CCFC​ • Managing partner of Nabell Winslow Investments & Wealth Management • Wilmington, NC

“When people move to Wilmington—one of the retirement boomtowns of America—they may realize they need to change some things, as different states can have different regulations around wills, estates, and trusts.

“They’ll often start by looking for an attorney. At that point, they may or may not be ready to hire a financial advisor. But eventually, many of them do. That’s when relationships with centers of influence become very important. Other times, clients come to me first, and I then refer them to estate attorneys for that work.

“Another trigger point for referrals is when people in the accumulation phase of wealth end up buying stocks, bonds, and annuities from lots of different advisors without a coordinated financial plan. They may meet with a high-end estate attorney to get that all buttoned up. Sometimes it’s just paperwork, but that process often leads them to thinking about whether their assets and tax planning are integrated. Next thing you know, they’re looking for a referral or searching online for a financial advisor.

“Having a good reputation, a good brand, and relevant credentials is important. In my case, holding the Retirement Income Certified Professional designation, along with a master’s degree with a concentration in retirement, catches their attention. If prospects can see how you’re branded online and then hear about you from their attorney, that’s how you convert those people into clients.

“How do I get to the top of a CPA’s referral list? I focus on making the CPA’s life easier—whether that means emailing or hand-delivering documents with the client’s permission, or just providing excellent service. We treat them like VIP private wealth clients because our goal is to support them and make their work easier.

“While we host networking events to connect with other professionals in our community, the most common way I meet CPAs and attorneys is through joint clients. You get to know them, taking them to lunch to develop relationships. Then we start talking about client outcomes—are we on the same page for the benefit of the client?

“Sometimes a CPA or attorney brings me in to help clean up a major mistake made by another advisor. It’s often stressful, time-consuming work, but it also builds credibility. They realize that they have a professional resource they can trust to execute well, which makes you more referable going forward.

“When collaborating with CPAs, attorneys, and other professionals, we take a team-based approach. That’s essential. When everyone involved understands the full picture, the client benefits.

“If you’re mission-focused, highly credentialed, and skilled—and you can show how that benefits clients without threatening the CPA or attorney—you’re going to win in that world.”

Theodore Hicks, CFP, CKA, CMT • Founder, CEO, and chief investment officer at Hicks & Associates Wealth Management • Cary, NC

“We bring a family office–style approach to our services, offering personalized attention and comprehensive financial management. This involves coordinating various aspects of each client’s financial life, from investment management to retirement planning and everything in between. Our goal is to provide a holistic approach to financial management, helping clients put all the pieces of their financial puzzle together in a way that clearly supports their goals.

“In that process, we want our clients to view us as their chief financial officer. That doesn’t mean that we handle every financial decision, but it does mean clients expect us to collaborate with other highly qualified professionals. Whether it’s an insurance specialist, a tax accountant, or an estate attorney, we want to work with highly qualified professionals. Otherwise, we risk looking unqualified ourselves.

“We’re currently working on an estate settlement case that is, truthfully, a complete disaster. The client chose to use a different attorney than the one we originally recommended. They now regret that decision, and it’s costing them big time. Situations like this are exactly why we want to collaborate with professionals that we know are competent. The only good news in this case is that I have another story to tell clients to underscore the importance of working with professionals we have thoroughly vetted.

“Unfortunately, over the years, I’ve worked with a number of accountants and estate attorneys that I would never be able to recommend to a client for a variety of reasons. So we’re always looking for experienced, responsive accountants and estate attorneys, and we have very good relationships with a select few.

“There’s no shortage of accountants in my market. However, there seems to be a shortage of responsive accountants. Unfortunately, many highly competent accountants have retired these last several years.

“Some accountants specialize in more complicated situations, while others compete primarily on low fees. I’ve tried for years to caution clients against choosing an accountant based solely on fees when their situation is complex, but it’s a struggle. I often advise them to pay a bit more for someone who is more experienced and may be far more responsive. 

“There needs to be good collaboration between an advisor, an accountant, and an estate attorney. That doesn’t mean all three have to get along and agree all the time, but there should at least be effective, professional collaboration. When there’s not, something needs to change.”

The opinions expressed in this article are those of the author and the sources cited and do not necessarily represent the views of Proactive Advisor Magazine. This material is presented for educational purposes only.

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