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Build NetworksDevelop powerful referral partnerships

The SunAmerica Client Referral Program

For financial professional use only. Not to be used with the public.

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.

1CEG Worldwide 2010.

Build Networks

Why Form Referral Alliances with Other Professionals?

The SunAmerica Client Referral Program 1

CULTIVATE 3

QUALIFY2

Develop Powerful Referral Partnerships in 3 Simple StepsAre 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

TARGET key partners and COIs

SEGMENT your list and refine your message

SHARE ideas and case study solutions

CONTACT top targets and make introductions

DEVELOP relationships with ongoing meetings

REFER clients while emphasizing your value proposition

Why Form Referral Alliances with Other Professionals?

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IDENTIFY1

Build Networks2

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.

Identify Potential Strategic Partners1

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.

Investment Bankers & Business Brokers

Realtors & Mortgage Brokers

Insurance Agents &

Long-Term Care

HR Directors

CPAs

Attorneys:Estate, Elder Care, Divorce

Potential COI

Partners

Referral TIP


Identify Potential Strategic Partners

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?

“

“

“

”

”

”

Build Networks4

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 Ideal Characteristics

Firm Type Regional CPA firm

Size 1-5 CPAs

Client Base 200 clients per CPA, with many key industry leaders and affluent investors

Leadership Founder is similar in age and interests, but forward thinking in marketing and management style

Approach Takes a holistic approach – not just a tax shop

Partnerships Outsources trust and estate planning with an estate attorney

VisionVision aligns with comprehensive planning and non-transactional advice—long-term partnership with each client

Referral Approach Favors using event marketing to make personal introductions

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.

REFERRALTIP

Referral TIP


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

Higher Potential Lower 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

Richard Murphy’s Insurance Agent

Michael Dickerson’s Estate Attorney

John McKay, CPA

Bob Nicholson Insurance

Steve Good’s Attorney

Brittney Alexander (HR)

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)

Steve Burton (Consultant)

Phil Smith (LinkedIn Group Leader)

Bill Berman (CPA)

Louise Bonerman (Estate Attorney)

Existing Relationship

Warmer

Colder

Build Networks6

➨ ➨

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:

Qualify Potential Partners2

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.

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


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.

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.

“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.

”

Build Networks8

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.

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.

Referral TIP


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

Build Networks10

Cultivate Partnerships 3

Earning Your Partner’s TrustIn 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.

Continuing EducationMaintain 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.

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.

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


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!

Ongoing ProcessIt’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.

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.

“”

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?

Referral TIP

Build Networks12

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 ReferralsWhen 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:

Give the new client exceptional customer service. Be willing to move away from a deal that is not a “complete win" for the client.

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.

Keep the COI in the loop—update him/her on your activity with this new client.

When the work is done, send a summary letter for the COI’s files. (Must get permission from your client.)

If the COI asks you to call a client, do so immediately.

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.”

Treat the new client like royalty

Say thanks—again

Communicate

Recap

Be efficient

Say thanks


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 800-232-1230 for details.

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

3CEG Worldwide.

For financial professional use only. Not to be used with the public. Distributed by SunAmerica Capital Services, Inc.

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