Helpful Tips for Expanding Your Business: Paying it Forward

Pay it Forward: As a Financial Advisor, Getting Business for Your Clients Can Mean More Business for You

Financial Advisor Client AcquisitionGiven the hyper-competitiveness of the financial planning industry, a financial advisor—regardless of whether they work for an independent broker dealer or a wirehouse firm—must be intensely focused on expanding their client base to maximize their professional success and keep from getting eaten alive by a pack of hungrier financial advisors. 

As a financial advisor, settling for the status quo is wholly insufficient. You simply can’t declare yourself as an elite, stand-out financial advisor and then expect new clients to come banging down your office door. Rather, you must take meaningful action to stand out from your competitors. As the saying goes, “no man (or woman) is an island.” Especially not if he or she is a financial advisor who wants to make it big in this industry. Networking is a non-negotiable necessity for success.

As discussed in the previously published Summit Brokerage blog entitled “Financial Planning Terms: What is a Center of Influence (“COI”)?”, to get a leg up on the competition and reach your practice’s growth potential, it is imperative for a financial advisor to propel his or her referral-building activities by proactively establishing a potent and powerful center of influence network. While a powerful center of influence network is still an essential part of networking and ultimately acquiring new clients, it’s not the only way a financial advisor can successfully network.

The traditional form of networking is to meet and mingle with other professionals to see if any of them might want to do business with you or refer you business. There is also another networking approach that involves helping out the people and professionals you happen to come into contact with, hoping that this good karma and the notion of social and professional reciprocity will lead to them sending you clients in return for your help. While both of these forms of networking can be effective, there’s also a noveler approach to networking you can take: refer business to your current clients and facilitate these valuable connections.

First, you’re going to need to find out more about your clients’ businesses and professions and what their ideal client looks like and then determine the ways you can best add value for them. For example, let’s say one of your clients is a physical therapist. Maybe you know people who need a good physical therapist. If the situation seems appropriate, then go ahead and make the introduction between your client and their ideal client for their specific business.

There are multiple reasons why this form of networking is a value-added proposition:

  • You’ll seem like a hero to your clients. Not only will you be helping them make money and grow their business by providing them with new clients but also they will feel that you personally care about them and are invested in their business success. When a client feels a personal connection with you, they are less likely to leave you for another financial advisor.
  • Ideally, when your clients hold you in you in such a high regard, they will become a powerful referral source for new clients for your financial advisory practice. It’s a win-win situation for everyone.
  • By referring business to your current clients, you’ll be helping them make money. With more money, your clients will be more successful at reaching their financial planning goals. Even if your client could hypothetically find another financial advisor who has lower fees or who could be slightly more successful at increasing their investment portfolio earnings, your client is still likely to stick with you. After all, the money generated by the new clients your referred to your clients most likely far outweighs the money that could be made by hypothetically earning a little bit more in their investment portfolio or the money that could be saved by paying slightly lower financial advisor fees over a long period of time.

For more information on Summit Brokerage Services and our independent financial advisors, visit or contact us at (800) 354-5528. We’ve been voted the number one boutique independent broker dealer firm in the country—let us show you why!


About Summit Brokerage Services

Summit Brokerage Services, Inc. is part of Cetera Financial Group®, a leading network of independent retail broker-dealers. Summit Brokerage provides a broad range of securities brokerage and investment services to primarily individual investors. Summit Brokerage also sells insurance products, predominantly fixed and variable annuities and life insurance through its subsidiary, SBS Insurance Agency of Florida. Summit Brokerage also provides asset management services through its investment advisor, Summit Financial Group, Inc.

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