Marketing frontlines: Community activity can help you establish credibility with prospects

(March 2003) In last month’s column, I talked about the need for most advisors to go beyond client referrals to grow their business. Going forward, any prospecting activity will have to start with a solid foundation of credibility among the investors with whom you’re hoping to do business.

Last month’s column focused on targeting one or more very specific client communities with a view to developing visibility and reputation within those segments as “the best choice” for their financial needs.

This month we shift gears to another tactic that establishes credibility — taking leadership roles in high-profile community activities.

Talk to a group of highly successful advisors and look for the common traits. Aside from a very strong work ethic and a disciplined approach to doing business, you’ll likely find active involvement in one or more local charities. That’s especially the case in small- and mid-size communities. As a general rule, the smaller the community, the more business is done on the basis of personal connections and reputation — but this principle also applies in the largest of cities.

Of note, the positive impact from leadership in community activity goes well beyond the people you meet. Advisors who are active in the community find their names become familiar to prospective clients. Even if you are speaking to someone who hasn’t heard of you, the fact that you’re able to talk about your participation in the community builds credibility and sets you apart.

Now you might ask which came first: Did advisors’ involvement in the community make them successful or did their success lead to them being invited to participate in community activity?

The answer seems to be a combination of the two. Many advisors became involved in one or more community activities early in their career and as they became successful, their level of involvement often increased. This was partly because they had a bit more time as they got over the hump of getting their business launched and partly because they became better connected and could make more of a contribution.

As you reflect on how you’re allocating your time in 2003, you might want to give some thought to your focus on community activity. A few simple guidelines apply as you think about this.

Start by determining which areas you’re already involved in — whether it’s the school association, the Rotary Club or the local chapter of Big Brothers and Big Sisters.

If you’re not currently active in community affairs, talk to friends about where they’re involved — chances are their group would be happy to take on an additional volunteer and the fact that you know someone makes it more likely that you’ll find the experience an enjoyable one. Be sure that any group you join is one that interests you — if you don’t enjoy theatre, becoming active in the local theatre is unlikely to be sustainable.

Once you find an activity you enjoy, make it a point to make a real contribution. You’re far better off taking a leadership role in one organization and making a real impact than joining two or three and simply showing up for the odd meeting.

Two final notes: First, stifle the impulse to turn your involvement into overt business generation. For example, have cards with you to hand out if you’re asked for one but let other people take the first initiative. People look skeptically at anyone who is seen to be using community involvement as a sales opportunity.

Second, be prepared to be patient. It takes time to build credibility and for people you meet in one context to become comfortable with you in another. Make a real contribution in the community and over time, chances are you’ll start seeing results.

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This article was originally published in the March 2003 edition of Advisor’s Edge magazine, a sister media property of Advisor.ca in The ADVISOR Group. To register for a free one-year subscription or to view archived Advisor’s Edge articles, please click here.

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For more marketing and communications tips and tools, be sure to check out our special online report, Maximum return marketing and communication strategies by clicking here.

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Dan Richards is CEO of Cartier Partners Financial Group.

(03/21/03)