I realised recently that this is the unasked question behind a number of approaches I have received in recent months. Such approaches tend to come from business service providers who want my views as to how they can best work with accountants.
Invariably they start from the premise that accountants would want to promote the new service and the provider to their clients as there’s a healthy commission in it for the accountants. Easy money. And yet the service provider is struggling to generate interest among the accountants they know, let alone the ones they have yet to approach.
In this connection I was recently asked an interesting question:
Does the offer of money for referrals dilute the proposition of a partnership?
In my view few accountants will make a referral purely because of a possible referral fee/reward. Some will have no interest in one at all. Others are more commercial and can see it makes sense especially if they’ve saved the service provider spending as much on more direct marketing costs. However I also think that the ‘offer’ can undermine the prospect for a longer term relationship if mentioned too early.
What do you think?
Of course, when it comes to regulated financial services advice there are specific regulations and rules with which qualified advisers must comply. I guess that for some people that’s more hassle than they think it might be worth.
Equally I’m aware of statistics suggesting that most accountancy firms could generate at least 20% more turnover (if not profit) by providing financial services to their client base.
I’d value your views and comments on this post.
Ah, the thorny issue of Accountants and Finacial Advisers working together.
As I was previously a Personal Tax Manager in a Big 4 firm and also a qualified Financial Adviser, I understnd both sides of the fence.
Finacial Advisers have no problems in talking to Accountants and offerking their services. It is the Accountants that seem to have the problem.
It seems to come from a fear that they will somehow lose their clients.
An example.
A local accountant to me wrote an article in a small paper extolling the virtures of shareholder/partnership protection. It ended with a statement that if interested, people should talk to a Financial Adviser.
I approached said Accountant and it transpired that he has no affiliation so we agreed to become a “team”.
I even took office space in his firm so I could be on hand.
Anyway, 2 1/2 years on, he has not referred one client for such protection.
Solicitors seem to have the same issue but all I want to do is offer a good service, deal with clients problems and at the end of the day make money for myself and the Accountant if that is the route he wants.
I would be daft to do anything “dodgy” as I want to cultivate relationships with clients as well as their professional advisers.
Accountants need to loosen their grip on clients and offer an all encompassing service – they already should give good tax advice so why not spread the availability of good financial advice as well.
OVER TO YOU