FROM SEMINARS TO STRATEGIC ALLIANCES

David called it "the grind." Every month, he would spend countless hours cold calling prospects to invite them to a seminar. Then he would deliver the seminar to a roomful of largely undesirable prospects. Then he would meet with the handful of interested prospects and try to open accounts with them. The cost and effort were wearing him down.

"I knew something had to change," he told me. Today, David says he is far happier at work. His assets under management have doubled during a difficult year and the momentum he's built is continuing to breed success. How did he transform from cold calls to a hot streak? This is David's story.

IDENTIFYING THE CENTERS OF INFLUENCE

"It was exhausting to get people out to my seminars," David recalled. "And most of the people who showed up were 'orphan' clients - that is, they had no ties to other potential clients or business referrals."

It was while reading Effort-Less Marketing for Financial Advisors that he finally decided to take action. In early 2002, David started the Effort-Less Advisor Coaching Program and put a halt to his public seminars once and for all. During the program, he found a new channel for generating business: strategic alliances with Centers of Influence.

"During the Effort-Less Advisor Coaching Program I really focused on establishing strategic alliances," he said. His goal was to set up a system that generated a stream of pre-qualified, pre-endorsed referrals and introductions from other professionals such as lawyers, accountants and insurance brokers.

To identify Centers of Influence, David conducted research interviews with his clients and prospective clients. During these discussions, he surveyed each person about their accountant, then created a list of potential strategic partners to contact.

"I was careful in how I approached these accountants," David told me. "They tend to have a lot of aggressive mutual fund sales people contacting them, and I didn't want to be grouped with this bunch. Instead, I explained that I was a fellow professional interested in creating a long-term, mutually beneficial business relationship."

David also tapped into his personal network, including neighbors and acquaintances from church. From this pool, he identified a few very qualified potential alliances.

CREATING A SMART PARTNERSHIP

"I wanted to align with people who were professional and like-minded, but also people I connected with on a personal level," he said. He also made it a point to find out about their client bases how they did business - their challenges, their goals and their processes.

When he finds potential allies, David offers them a "test drive" to experience his client service approach. "The ideal situation is that they become clients of mine," he told me. "Then instead of just referring me, they can endorse my services to their clients."

Already he has established three solid alliances with Centers of Influence - an accountant, a lawyer and an insurance broker - and two of them are currently his clients.

"This is a much better way to do business," he said. "You get higher quality clients who are pre-screened and basically pre-sold. Plus, when you are recommended by someone they trust, prospects automatically trust you. My relationship with these investors starts on solid ground."

JUMPING FROM $8 MILLION TO $16 MILLON

By shifting the makeup of his client base and establishing relationships with Centers of Influence, David has doubled his assets under management this year.

Before he started the Effort-Less Advisor program, he wasn't attracting ideal client. When he recently changed firms, he took the opportunity to shed many of his clients, reducing his assets from $15 million to $8 million under management. Today, he is back at $16 million and growing.

"I've doubled my business in one year," David told me. "And this is during a rough economy when many advisors are struggling."

He added that his new clients are much easier to deal with and appreciate him more. They are well connected in their communities, a good source of referrals and they appreciate the service he provides.

His average account size is also increasing. Typically, David manages accounts of around $350,000. Recently, however, he acquired an account worth $800,000 and is working on one worth $1.5 million. He says he would never have found these investors through his old method of cold calling. "These are not the type of people who attend public seminars," he said.

With his Centers of Influence steadily referring ideal new clients, David has experienced a phenomenal year. This year he had his three biggest revenue months ever. And his top revenue month was double what he had achieved before.

Even better, managing his business is becoming easier and easier as his strategic relationships mature. And as his average client size increases, David is earning more money by working with fewer clients.

Now, David is working to create seven to eight additional strategic alliances. He plans to make some operational changes in his business, as well - to keep up with increasing demand. But even in the face of a growing workload, David is happier than he has been in a long time.

FREEDOM FROM THE GRIND

"I have so much more hope now," David told me. "Before I was using extracurricular activities to escape from work. Now, I look forward to work."

Instead of cold calling, David is working on proposals and meeting with clients and motivated prospects. He is far more productive and has more results to show for his efforts. His expenses have plummeted as well, thanks to the canceled seminars.

"My business has real momentum," he said. "I feel like I'm making great progress and I'm getting to the point where I can take some time off."

David is also getting to the point where he feels comfortable turning prospects away. "I'm starting to get particular about who I will take on," he told me. "I want to make sure the client will be enjoyable and profitable to work with."

ADVICE TO READERS

David said he had a few pieces of advice for readers. First: don't be dissuaded by the lag time.

"It takes a while to establish these strategic alliances and see the return," he said. "There is a lag time of six months to a year."

Perseverance is key, said David. Identifying the right strategic alliances can be a numbers game.

"You have to talk to a lot of people to find the right fit," he said. "There are some accountants that are more business-focused and some who are more technically focused. I've found that the business-focused professionals are the best partners for a strategic alliance."

Above all, he said, keep working toward your goal. "It took a while, but now I'm beginning to see great results," he said. "I'm happy and I'm optimistic about my future."

David is living proof that this strategy works - and the payoff is life changing.

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