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The importance of networking and referral partners for professionals

As soon as COVID-19 restrictions started easing, one of the things I was looking forward to the most was the return of in person networking events. I believe networking events are the ace in the hole for any professional, including lawyers who wants to continue to evolve and solidify themselves as one of the most well-rounded in their field. Networking events are the primary tool for finding and building new relationships with other professionals who work outside your field of expertise. These professionals can introduce you to new clients which will in turn provide your firm with a financial benefit and give you invaluable learning opportunities.

What I love about networking events is that they do not have a set structure. It is not like speed dating where you are confined to one part of the room and are forced to speak to every person in the room for a couple of minutes at a time. Networking events can be anything, so long as it allows people who work in professional services to interact with one other and establish a relationship. Some networking events may still follow the traditional format of gathering a number of professionals in a room and leaving it to the attendees to talk. Networking events can also have a fun theme like a wine and cheese tasting night. I have found themed networking events have been successful for my business growth, because through them I have been able to establish long term referral partner connections. Networking events are an ice breaker that assists in fostering personal connections between professionals which then leads to us becoming more incentivised to find opportunities to help each other’s businesses.

Any employee who works in a professional service-based business, who can pass and action referrals, should look to become involved in networking. The financial, educational, and social developments that result from effective networking can positively influence the way you provide services to your clients. As a result of the specialised training and education that is required for occupations that fall under professional services, these individuals should be striving to continually be learning new ways to assist their clients. Occupations such as lawyers, accountants, financial planners, marketers, etc. should be investing time into networking because of the continued and long-term development opportunities and benefits it can provide, some of which are outlined below.

1. Source of Business Income

Securing new referral partners who can provide you with paying clients, may provide your business a substantial financial benefit. The connections and friendships you make with other professionals through networking events will transpire into being able to cross refer clients needing assistance in each other’s respective areas of expertise. Your referral partners will be able to introduce you to new clients who can provide you with additional paid work and the potential to establish a relationship with that client so they will continue coming back to you for your assistance. These new clients may also then refer you to their own network of friends and family after they realise the quality of work you are able to deliver them.

2. Gain New Knowledge

Professionals often require specialised education and training in order to provide the best advice to clients. Other professionals are generally the people who provide this education to you in their area of expertise, which is also known as continued professional development. Being knowledgeable in other professional service areas will allow you to have a competitive edge over your peers, as you have unique expertise that you can assist your clients with by referring them to the appropriate professional. An example of this may be a commercial property lawyer assisting a client with a joint venture development purchase, where the lawyer is able to refer the client directly to a trusted referral partner being the accountant for strategic advice on whether the desired structure from a tax perspective will be viable.

3. Referral Partners can Provide Advice

The contacts you gain from networking can provide you with off the cusp advice which you can use to answer any questions that arise from your clients. Being able to utilise this advice will have a positive impact on your client’s perception of you because you can answer the questions that your peers cannot. This may also be a good opportunity to refer the client to the referral partner directly. The benefit of referring is that it can often result in a return referral for you for additional work or to a whole new client.

4. Expanding your knowledge beyond existing boundaries

Obtaining new knowledge from a different professional allows you to become more experienced in your role. For example, as a lawyer it is part of our ethical duties to act in the best interests of the client. Having well rounded knowledge of other services allows you to identify what type of assistance your client needs from your referral partner. You will be able to point your referral partner in the area your client is most interested in engaging their services for and feel assured that your client will be well looked after.

Having the ability to effectively network and knowing what type of people to establish a referral connection with will assist in building your business or the business you are employed under. An excellent networker is aware of what type of professional they will collaborate best with to be able to pass quality referrals between each other. Being able to identify this, develops business skills and undoubtedly allows you to have a better understanding of how a business relies on referral leads.

5. The Power of Giving

Networking is not just about receiving; it is also important to give. Being able to establish a referral relationship is not just dependent on one person getting the benefits of new clients. If you can provide your referral partner with work, it puts you at the front of their mind when thinking of who is best to assist with their clients. You never know whether your client has the need for another professional’s services unless you ask the right questions, and your referral partner may be the missing ingredient they need to rise to the top. Referral relationships will evolve over time and eventually start occurring without having to think too much about it. However, it is always important to remember that every referral is precious and therefore you should thank the referrer and keep them updated on the progress of the matter.

How do you Find the Best Networking Events?

It is easy to say why going to networking events is so important, but it is harder to implement it as a regular part of your working schedule. You want to make sure that you are going to networking events that are going to have the types of people you want to establish long term connections with and who will be able to introduce you to new clients and vice versa. The best way to do this is through the following three-step process:

1. Target specific events

Get an understanding of where your existing clients have come from i.e. how did they find you in order to engage your services. For example, if most of your existing clients have been referred by real estate agents then you want to attend networking events where other real estate agents will also be present. You offer a service that real estate agents can refer new clients to and in exchange your clients will also be looking for your advice on trustworthy real estate agents to engage.

2. Locate an upcoming event where your ideal referral partner will be in attendance

Sign up to mailing lists so you are notified of upcoming events. My insider tip is also to look for events that are hosted by a particular group on a recurring basis as these are more likely to be well attended as opposed to a one-off event. For example, as a lawyer your ideal referral partner may be someone who works in the finance sector, whose clients are always looking for legal advice. You will also be able to refer your clients to these finance professionals for asset protection and wealth advice. Therefore, you may look at attending various networking events such as a monthly meetup arranged for finance and legal professionals or an established networking group that has a finance professional as a member already. This will ensure you that there will be somebody from the finance sector for you to connect with.

3. Always be in touch with your referral partner

It is not enough to meet one person at a networking event and hope for the best that they will give you work. Remember, you need to compete with your peers who are also talking to your potential referral partner and are hoping to establish a similar relationship. Make sure after your networking event that you send an email to your new connection; it will give them your contact details, so they know how to find and contact you. Try to schedule a time to meet up with your new connection outside the event so you can have one on one time to chat about your services and how you can help each other to grow your businesses.

You also need a long-term strategy to be able to contact your referral partner, so they do not forget about you a month after the networking event. It is always a good idea to touch base with your new connections on any new developments in your area of expertise. If your new connection does give you work, make sure you keep them informed as to the progress of it. Not only is updating them a good way to contact them but they have the peace of mind of knowing their clients are being taken care of. Professional social media accounts like LinkedIn are also a great way of staying connected and up to date with your referral partners.

It is never too late or too early in your career to start networking. Networking does not just have a financial benefit at the outset, but it also allows you to develop your knowledge, professional skills and stand out amongst your peers. Remember that effective networking does not just stop at the event, you should also try to develop a new referral relationship by meeting with your new connection one on one and finding ways to cross refer clients.

Learn more about Kayleigh and the work she does for NB Property Law.