Referrals from centers of influence (COIs), most often accountants and attorneys, remain the most effective way to build a high-end wealth management practice, according to Financial Advisor News. The publication reports that most wealth managers view COI referrals as the most reliable source of high-net-worth clients. Even so, only a small percentage of advisors consistently generate meaningful referral volume from these relationships, Financial Advisor News notes.
Financial Advisor News reports that a review of referral activity among 401 accountants and attorneys helps explain why outcomes differ so sharply. Over the past three years, roughly half of surveyed COIs made between five and 10 referrals per year to wealth managers. About one-quarter made fewer than five referrals annually, while approximately one-fifth generated between 10 and 15 referrals each year. Only 5 percent produced 15 or more referrals annually, according to Financial Advisor News. The data also showed no meaningful difference in referral behavior between accountants and attorneys.
As reported by Financial Advisor News, the findings suggest that the primary obstacle does not stem from COI type, but from how wealth managers select and engage potential partners. A critical driver is a COI's desire to grow their own practice. The analysis divided COIs into high-growth and low-growth groups based on stated goals. Nearly four-fifths of respondents said they aimed to significantly expand their practices, while the remaining group reported satisfaction with their current scale. Financial Advisor News reports that high-growth-oriented COIs generated substantially more referrals than those content with the status quo.
Financial Advisor News further reports that many wealth managers dilute their efforts by treating every accountant or attorney as a viable referral source. This lack of selectivity limits results. Advisors achieve stronger outcomes when they qualify COIs before investing significant time and energy, according to the report.
Discovery remains the most effective method for assessing whether a COI truly wants to grow, Financial Advisor News explains. Through open-ended questions and thoughtful follow-up, wealth managers can uncover how accountants and attorneys think about income, clients, and long-term goals. Financial Advisor News reports that effective discovery creates insight into motivation and lays the groundwork for sustainable referral pipelines.
According to Financial Advisor News, questions that explore future vision, income targets, firm growth goals, and aspirations often reveal whether a COI prioritizes expansion. Additional inquiries about ideal clients, moving upmarket, and the number of high-net-worth clients needed to meet income goals further clarify intent. These conversations require probing and empathetic listening to surface meaningful signals, the publication notes.
Financial Advisor News also emphasizes that follow-up technique matters. When responses indicate strong growth motivation, wealth managers can deepen the relationship and position themselves for ongoing referrals. When responses show little interest in growth, the most effective strategy is N.E.X.T., meaning Never Extend Extra Time, according to the report.
By sourcing COIs more selectively, verifying growth orientation through discovery, and collaborating intentionally, wealth managers can generate more consistent referrals, serve more clients effectively, and build stronger, more scalable practices, Financial Advisor News reports.
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