"You must understand the 'two-way street' nature of such a strategic alliance in order to successfully seek out and find the right attorney with whom to establish a strategic alliance."

Attorneys as Allies

By Patricia J. Abram

"Pull" marketing strategies—strategies that draw clients to you based on the superior service and profound value that you provide—are at the heart of any successful wealth management practice. One of the most critical pull marketing strategies is the creation of strategic alliances with other professionals, especially attorneys and accountants. Such strategic alliances are an extremely efficient and effective way of generating new business with clients who fit your ideal client profile.

Such alliances serve another critical function. While you and your staff may be able to deliver competent services outside of your direct areas of expertise, that's not good enough. Instead, you must be able to deliver world-class services to your affluent clients—it is a buyer's market, after all—and this means you absolutely need to have alliances with the best possible attorneys, accountants and other professionals.

According to research by CEG Worldwide principal Russ Alan Prince, trust and estate attorneys on average refer 10 percent of their clients to investment professionals, with an average of $2.7 million in investable assets per client. Intriguingly, the research also found that three-quarters of surveyed attorneys had not been approached by a single advisor in the previous year! This untapped market represents a significant opportunity for savvy, entrepreneurial advisors.

A strategic alliance with an attorney is, and must be, a mutually beneficial relationship that serves you both. You must understand the "two-way street" nature of such a strategic alliance in order to successfully seek out and find the right attorney with whom to establish a strategic alliance. Then you must make sure that, however informal, there is agreement on how the relationship will provide appropriate benefits to both of you.

Advisors benefit from strategic alliances with attorneys in three ways. First, you will be able to place your clients into the hands of someone who can deliver world-class expertise just when they need it most. As a wealth manager you are concerned with all of your clients' assets, goals and concerns; if a client needs legal advice, you should be quite certain that it will be of the highest quality.

Second, you will have positioned yourself to receive referrals of individuals who have "money in motion"—inheritances, retirement, sale of a business or a lump sum of some kind. Third, because of the nature of attorney-client relationships, there is typically a high conversion rate on such referrals, making this an extremely cost-effective form of pull marketing.

What about the value that advisors give back? First, the attorney can be confident that his or her client is working with a financial advisor who will deliver world-class service. (Sound familiar?) Second, as part of cementing the relationship with the attorney, you can offer your marketing expertise, knowledge of the affluent market, and the many benefits that accrue (for both attorneys and advisors) from having a client-centric focus. Many attorneys are weak in marketing skills and will be glad to benefit from your marketing input and expertise.

Third, over time you will make a number of referrals back to the attorney. Attorneys these days are under enormous economic pressure to perform, especially when they become partners and move from "grinding it" to "finding it." Learning to become a rainmaker is no easy task and trust and estate attorneys who need to generate their own new business will be especially open to the referrals, marketing benefits and other advantages of being in a strategic relationship with a quality financial advisor.

Lawyers' Chief Concerns

To create a strategic alliance, begin by identifying a number of suitable potential alliance partners, including the trust and estate attorneys of your wealthiest and most ideal clients. After creating your list, narrow it down to five or fewer candidates based on reputation and readily ascertainable objective factors.

The next step is to make some initial phone calls to propose the exploration of creating a working relationship, perhaps over breakfast or lunch. Most attorneys can use help with business development, and will respond positively to a respectful and professional inquiry. When you meet, confidently describe and project the value that you would bring to an alliance, and use your intuition to feel out whether there is a good fit.

Carefully inquire as to their philosophy, their values and how they work with their clients. Are they entrepreneurial and marketing-oriented? Do they work extensively with wealthy clients and other professional advisors to the wealthy? Do they have the best interests of their clients in mind, and sincerely want to help their clients solve problems and achieve their goals? Do they share your commitment to client service, integrity and professionalism?

In short, find out what makes them tick and whether you are really compatible with them. Of great importance is the attorney's level of expertise, as you will be referring your clients to the attorney after positioning the attorney as being a true expert.

Next, consider a second meeting with your top one or two choices. There, you can delve deeper into the details of each other’s practices, and further explore how an ongoing strategic alliance would look and function. In most instances, the strategic alliance will be with the individual attorney, and not with other members of his or her firm. Also, any alliance will probably be informal; that is, it won't be framed by a written agreement with revenue sharing formulae or other means of precisely tracking the flow of benefits.

CEG Worldwide research shows that about 12 percent of attorneys will want to have a formal revenue-sharing arrangement of some kind; in such cases, you will need to be certain that all legal and compliance requirements are met. To truly create the win-win that is possible here, a relationship of trust and mutual consideration must be established.

Once you have an alliance, nourish and maintain it over time. Contact the attorney on a regular basis, and have breakfast or lunch a few times a year. In this way, you will continue to be first in the mind of the attorney whose clients need financial advice, and the attorney will likewise receive the benefit of your referrals when your clients are in need.