Most Popular ArticlesDecember 22, 2009
If you aim to integrate the spirit of the holiday season into your practice, consider a networking strategy that emphasizes providing support without the direct expectation of receiving referrals.
That framework underlies the Strengthening the Advisor Channel (STAC) networking group, which was created by Andrew Magnus, a business development officer at Schwab. The idea behind STAC is to bring together individuals who serve the advisory profession, drawing on technology, accounting, legal, and consulting firms.
STAC meetings are focused on allowing participants to share their experiences, challenges and successes they’ve had working with advisors and their clients. Referrals may come from the meetings, but that is a secondary or tertiary goal that occurs down the road.
STAC advocates networking with a client-centric twist. While you measure the success of traditional business networking by how often your colleagues and friends help you get what you want, STAC re-defines networking success from your clients’ perspective.
“Our members network with the sole focus of making connections so they can better serve their clients, rather than with the hope of gaining new business,” explains Magnus, who founded the group in June 2008. “If you give something without the goal of getting in return, that puts you in a unique position to strengthen your relationships with clients and add real value.”
STAC members meet over dinner every other month in New York City. Magnus initially extended invitations to professionals who he felt helped advisors in interesting ways, but members’ referrals have grown the group. “We have advertising executives and technology and operations specialists committed to common business values such as open communication and enriching everyone’s perspective into the advisory business,” Magnus explains. “There is no overlapping of members’ capabilities. Each member has an area of expertise and all bring something unique to the table.”
Gary Davis, president of Beneficial Concepts Group, a Stockton, N.J., operations management firm, admits that traditional networking groups have not worked well for him. He says the first step in trying STAC’s new approach was getting rid of his networking baggage. “You can’t walk around with a ledger thinking, ‘If I give you this, then you will owe me.’ If you forget keeping score and open up to a whole new way of thinking, you realize benefits for your clients,” he comments. “I’ve enjoyed learning about other members’ capabilities and several have referred me to business resources in Philadelphia who I have contacted about working with my clients.”
STAC’s core focus on helping clients has similarly energized Gregory Roll, principal and chief creative officer of Ronin Associates, a boutique White Plains, New York advertising firm that works exclusively with RIAs and multifamily offices. “You cannot explore synergies when you’re interested only in yourself,” he says. “That’s why most structured networking doesn’t work. It’s ultimately not sustainable. If everyone shows up and says, ‘Nice to meet you. Do you have any leads for me?’ the conversation goes absolutely nowhere.”
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