Advisor explains the importance of a network building strategy, but emphasizes that trust is earned through quality work
There’s a moment in the early months and years of an advisor’s career, when they start urgently searching for an introduction. The first stage of this career, for many, comes with their own personal networks and the centres of influence they already know. Friends, family, and a widening web of connections often make for an advisor’s first set of clients. After a point, though, that network starts to run out and a young advisor realizes that they need a source of referrals that can take their practice in the right direction. They need a strategy and a structure for network building.
Wes Ashton learned those same lessons early in his career, and applied them into a practice built to serve high net worth (HNW) and ultra high net worth (UHNW) families. Ashton is Co-Founder and a Senior Portfolio Manager at Harbourfront Wealth Management in Vancouver, overseeing over $650 million in assets. Serving those ideal clients, he explains, requires earning their trust. A strong referral can help lay the foundation for that trust, but quality service is key to making these relationships last long-term.
“People who have been able to do this for a number of years have figured out there were their referrals a little bit different,” Ashton says. “But it starts with trust. That’s the biggest thing. Building that trust from day one is essential.”
Ashton draws a number of key distinctions in his networking approach. He explains how networking has changed from his early days in the industry, when things might have felt more transactional. Now network building is more of a natural outgrowth of relationships, though he notes younger advisors may still have to deal with a slightly more transactional tone in the way they start.
Another important distinction Ashton highlights is between networks of clients and networks of professionals. While trust underpins both areas, building client networks involves elements of subtlety and serendipity. Building professional referral networks involves assessing reputations and learning if you can trust that lawyer or accountant to do a good job, just as much as they might assess the quality of any advisors they refer out to.
In both cases, Ashton’s view is the best way to represent yourself as an advisor is to deliver. By doing the best job possible for your clients, you are creating a base of trust that might encourage them to refer you to their friends and family. Delivering for clients referred to you by another professional engenders a deeper trust between you and that lawyer or accountant, increasing the likelihood of another referral.
While ‘just do a good job’ might seem like obvious advice, Ashton highlights the important pieces of diligence around the core of quality work that some advisors might not think to do. The first comes in setting expectations. Delivering, in his estimation, means doing what you say you will do. Therefore, advisors ought to maintain clear expectations about what they can deliver and what is beyond the pale. In that process they can highlight areas some clients may not have thought of before, such as cashflow management, legacy, and philanthropy planning.
When working with a client referred by a lawyer or accountant, Ashton also encourages following up with that professional to ensure your work is meshing with theirs and that the client is satisfied.
Ashton admits that none of this is easy, especially for young advisors. Working to serve clients well can feel like it detracts from time spent networking, and vice versa. He says it takes intention to lift your eyes and build plans to attract new clients and referral partners while managing your existing book of business.
“You get so caught up working in the business, you don't work on the business,” Ashton says, “But you’re essentially an entrepreneur, you need to be mindful of that.”
The trust earned by good service is particularly important when seeking to break into HNW and UHNW client networks, Ashton explains. These successful individuals and families want to work with people they can trust. Earning a referral from someone they already know, be that a friend or a professional, can mean an advisor begins with a bit more trust already. Ashton explains that the referral means these individuals are entering the relationship with a bit more comfort, a key step in building a lasting relationship.
When encouraging referrals from clients or other professionals, Ashton is aware of some of the issues that could arise. He notes that some clients might not want to mingle their friendships with their professional relationships. He also sees potential trepidation that could come if a referred client ends up unhappy with their service. Rather than explicitly asking for referrals, he prefers to showcase his qualities as an advisors and the depth of what he can offer, letting his clients come to the realization that he can help other people in their network.
“It starts with actually doing a good job for them first. Because once they recognize the value, it's easier for them to introduce a friend, family member, colleague,” Ashton says. “True wealth management isn't just about portfolio management. It's about lifestyle planning. It's about cash flow, estate, taxes. When our folks recognize that we actually go beyond traditional advice, it becomes a lot easier for them. If you do a good job, you set yourself apart a little bit, you remind them that that what we do is more comprehensive, then ultimately we end up getting introduced to folks.”
