Nixing referral partners and doing it all
Who needs a referral partner when you can do your client's mortgage, insurance, et al? Advisors are increasingly seeking out and winning a second, third or fourth designation in related fields as a way of claiming more of a client's business. But can the strategy backfire? WP reports.
Video transcript below:
Reporter, Wealth Professional TV
Reporter: Financial planners may be missing an opportunity if they stick only to planning. As barriers between planning, insurance and mortgages breakdown, gaining an extra foothold could help grow your business, although maybe it is best to stick with what you know.
Standard advisors model has been to refer clients [only]. But there’s a real benefit expanding your expertise and your accreditation.
Chris Karram, SAFEBRIDGE Financial Group & Investment Planning Counsel
Chris Karram: As a company we really believe based on [Jim Connors book] it would be great that we define what we could do best in the world and focus on that. And so when it comes to the opportunity to expand your accreditation, to expand your licenses and the value proposition you provide for your clients, we truly do believe that there’s a lot of value in being able to learn more and
understand more about the other cohesive services you can provide.
Reporter: Having additional credentials will help you add value for existing clients and you may do a better job than your referral partner.
Sudhir Bhalla, G.N. Financial Group
Sudhir Bhalla: I would say as a financial planner, we are in a better position to help the client needs. In terms of we provide, we know their financials much better than anybody else and at the same time being a, this is not our, mortgage finance is not our prime business. Then we can provide an independent advice that whether that product is suitable not as on today, from the future point of view. Because if I am not dependent on this mortgage financing, my primary focus is to give them the right financial advice. When we are talking financial advice, it also includes mortgages. So that is why I am saying it is, it becomes more important for it, from the client point of view.
Reporter: But maybe the old ways are best and you shouldn’t be a jack of all trades.
Chris Karram: You might you know be better off to potentially create those referral partners that can come in and work alongside of you, because if you know there is the risks and the responsibilities we have as advisors is substantial and to try and spread ourselves too thin, really tends to not be the best option, both for yourself, but also for the clients that you work with.
