Network hubs: Use professional associations to generate more referrals

(September 2005) In a recent workshop for a national dealer a few days ago, I spoke briefly about the concept of building “network hubs” to generate referrals. As I explained then, a network hub is an influential associate who functions as the “hub” of larger professional networks. By building relationships with these people, you gain access to all of the people on the “spokes” of that person’s hub.

This can be an exceptionally effective strategy for those who want to target-every advisor’s favourite—business owners. Due to their busy schedules and tight focus on building their business, many owners have little time to meet with you. That makes it extremely difficult to target business owners directly. In this instance, the network hub functions as an introduction, a way of getting in front of business owners who otherwise wouldn’t have the time to meet with you.

In many cases, a professional association or business group can also serve as a network hub. Instead of targeting an individual, you target a specific group of business people working in the same industry or trade. After establishing some key relationships within that group, you use the association as an introduction to more members of that group.

How can you use a professional association as a network hub? Here’s a simple process that can help you:

Identify appropriate associations

First, you need to identify local and regional organizations that cater to a specific group of business owners you want to do business with. Start with identifying a trade or industry—perhaps one a key client belongs to. Self-employed professionals such as dentists and doctors are obvious possibilities, but don’t forget about the many trade associations out there—many of their members are “millionaires next door,” and the source of excellent referrals.

Join associations and develop contacts

After you’ve identified several groups or professional associations, you’ll want to become involved with them. Most professional associations offer “associate” memberships to other business people who have an interest in the group. Become involved in those associations, and members will start to know who you are. If you can serve on the board—perhaps as an outside advisor—even better. Remember to take a slow and steady approach to building relationships—don’t force it.

Establish credibility by publishing

Once members know who you are, you need to make them aware of what you do, and how you do it. One of the best ways to do that is to publish financial content in an association newsletter. Not just any content, mind you: you need to tailor your content to members, and focus on financial topics of concern to them. The idea is to establish yourself as a specialist who knows about the issues that matter to members. This “inside knowledge” of their industry and professional concerns gives you a sustainable competitive advantage over an outside professional.

Develop a communication strategy that speaks to professionals’ concerns

Follow up your publishing with specialized marketing communications created specifically for members of the group or organization. This could take the form of a special quarterly newsletter. Or it could take the form of special speaking engagements on financial topics that intersect with the group. Whatever you do, the point is to create content that addresses the issues and concerns of group members. Communicate on a regular basis, and over time you’ll be considered an expert in your field.

As with other referral strategies, the key to utilizing network hubs is to be authentic. While members of professional organizations realize and accept members who join only for the networking and business-building opportunities, they are much more likely to do business with those who are genuinely interested in their industry. So stick to the businesses you find interesting. Get to know the people personally, as well as professionally. Success will follow.

Jeff Thorsteinson is the creator of the YouFoundation, an organization that has helped advisors build world-class practices through innovative concepts, tools, and systems since 1993. Contact strategicadvisor@youfoundation.com or 1 800-223-9332, ext. 21, for more information to help you build your referral business. Or visit the website at www.youfoundation.com

(09/12/05)