It’s a great question and one that many accountants over the years have asked.
Before I answer this, I wanted to welcome you all to 2022 and our first blog of the year. I thought it best to cover off on the most important issue when it comes to partnering with other service providers to help your clients. Why even bother if you think they won’t want help with issues outside your immediate product or service suite?
It can kind of set us up for the year so to speak. Get rid of the biggest hurdle and then everything else is easy. Or so we hope.
Over the last 10 years, I have worked with hundreds of accountants, mortgage brokers, financial planners, solicitors, real estate agents and more in helping them diversify their offering for their clients.
Some wanted to do it for “wallet share” and others because experience told them if you want something done well….do it yourself, or at least be involved!
On thinking about this topic, I came across many different trains of thought on why anyone would want their accountant to refer them to another service provider and just as many other trains of thought on the “how” to refer. Both require thorough exploration prior to committing to anything.
In this article I will focus on the “why” so we can devote the right amount of time required to explore these reasons. They great thing is it also works in reverse. Like when you want to establish a referral channel to generate new clients for your business. You’ll have the tools and expertise to be able to discuss the why and how with prospective referral partners. And I do have to say this is my most favourite way of generating new business.
3 main reasons your clients need your recommendations for additional services:
- Word of mouth is without doubt the most reliable and best way to find a product or service provider
- Finding someone who understand your needs enough to refer the right person to you is very difficult.
- You, the accountant are by far the most trusted professional in your clients financial lives.
Let’s expand:
Word of mouth is without doubt the most reliable and best way to find a product or service provider
If we rank in order of proven results and outcomes, from worst to best in the field of searching for products and service providers, word of mouth is by far the champion. Google, product review and other search engines do a decent job of imitating “word of mouth” especially for those without connections.
The issue here is they are still taking a higher risk as these providers can be gamed and manipulated from time to time. Add to this there is no real human connection or understanding of your actual requirements. Yes it can point you in the right direction for a plumber or such, but for financial services….hmmmm. I know I’d much rather have a recommendation from a trusted professional.
Finding someone who understand your needs enough to refer the right person to you is very difficult.
As my trusted accountant, you know who I am, what I like and won’t tolerate and my price point. No one is better suited to finding a like for like financial service provider than you.
It can be difficult to source the mortgage broker or financial advisor but again, a great way to start is by word of mouth. I’d stay away from asking clients as this can cause a conflict, but you have enough friends, family etc and perhaps even your own finance professional can be of service. An alternative is to put it out to tender and have a process similar to hiring a staff member. This way you can set clear boundaries and objectives too. And don’t forget, this should be a two-way referral street as well.
You, the accountant are by far the most trusted professional in your clients financial lives.
if we jump in our DeLorean, turn on the flux capacitor and go back 30 odd years, you’ll find the accountant at the centre of most Australians financial world. I remember my dad referring me to his accountant when I started working, purchased my first car and more. Our accountant was the “go to” person for all things financial. My folks wouldn’t even buy a car without advice from their accountant.
This remained up until regulators changed our world. The accountant could arrange most things financial. Now it is split between financial advisors and mortgage brokers who do the investment and debt solutions.
However: for most people You, the accountant as still their “go to” person for all things financial. Still the most trusted of the providers. Personally, I think this is because you are thought of as real professionals through generations of excellence. Plus, the transparency in charging for the service is another important factor as well.
So, like all relationships in life it all comes down to trust. Trust built through honest and open exchanges of goods and services gives your clients the assurance you are there to do the very best for them. As an accountant, you’ve earned it!
In our next blog we will discuss “how” to find the right complimentary service provider for your business.
Steve Lake | National Lending Group | www.nlg.com.au
He also owns Referconnect, a marketing company specialising in linking financial service providers to provide better outcomes for their clients and deliver assets and profit to business owners and stakeholders.
- NLG Education Series Part 2 – SMSF Lending for Accountants - 11 July 2023
- NLG Education Series Part 1 – Commercial lending for accountants - 27 June 2023
- Nuts and bolts: How to refer your clients - 8 March 2023
