Make a CPA Your Primary Client

[Brian Anderson]

Interesting article about a financial advisor who has made the CPA his primary client instead of trying to eke out referrals of that CPA’s “B” or “C” clients. Here’s a couple of excerpts from the article (link below):

“Instead of the standard fee-based investment plans, Lombardi more typically helps a CPA’s high-end client whose needs might range from a defined benefit plan to an employee stock ownership plan or a large insurance policy that will shield its owner from estate taxes. He’s doing one of those, a $14 million policy, for a CPA’s 50-year-old client right now that should generate a premium of $500,000 a year, resulting in a commission of about $400,000.”

“These [A clients] are worth hundreds of millions of dollars," Lombardi says. "That translates into over $100,000 in fees to the CPA. They’re never going to take the risk of sending you those clients.”

It was that realization that caused him to rethink how advisors need to approach CPAs. It dawned on him that he needed to stop threatening to compromise the CPA’s relationship with his clients and instead enhance that relationship.

Any thoughts on this approach?

Advisor Goes From 860 Clients to Zero, Makes More Money

 

[Cash]

It sounds to me like he is selling a marketing system. For all we know that CPA could have been his best friend or brother in law.

In the time it takes to get a referral, which like the guy said usually is not that great anyways, one can make thousands of cold calls. With those cold calls you can make sales and get actually good referrals and probably talk to a few clients CPA's if you really want to.

 

[walthamny]

There are quite a few people selling selling systems which basically say that we will show you how to take your client base of 500,800 or 1200 clients and cut it down to 10, 20 or 35 and you can still make at least 1 million dollars a year only working only on February 29 every 4 years. This article sounds very similar except they cut your client size to 1. You could also prospect with next Oprah and make much more than what this article suggests.

I never cold called a CPA, I always went with an introduction from one of their clients. CPA's are more likely to take your call when you are working with one of their clients.

 

[kgmom219]

I have met with CPA's for referral partnerships. I have several groups that are CPA firms. I have individual CPA clients. And they have always been lousy referral sources. I always wondered why and now I know....

 

[Stephen]

It sounds to me like he is selling a marketing system. For all we know that CPA could have been his best friend or brother in law. In the time it takes to get a referral, which like the guy said usually is not that great anyways, one can make thousands of cold calls. With those cold calls you can make sales and get actually good referrals and probably talk to a few clients CPA's if you really want to.

You know what, I was also thinking that this guys brother in law must a high power CPA , and he is trying reverse engineer that into a "system".

No doubt that an alliance with a CPA would be awesome, I am just skeptical of anyone that proclaims to make a ton of money working 1 day a week.

 

[DHK]

It depends on that 'one day'.

Just remember that CPAs aren't having meetings on how to cultivate US. We don't compete with CPAs (except those who are PFS credentialed).

Problems with CPAs come up when a client takes a recommendation from their agent/advisor to their CPA to get their opinion... without the recommending agent/advisor present. The CPA can torpedo any recommendation you make within a couple of minutes... just because they can... no matter how long or how well researched the recommendation is. The more simplistic the proposal, the easier it is to dismiss it.

CPAs will also want to see that you take your profession seriously. Networking in similar circles and associations (National Association of Estate Planners and Councils comes to mind) and having your designations (CLU, ChFC, CFP, etc.) and a proper biography sheet will help to put a face to the recommendation or illustration.

CPAs are the ultimate tax & financial problem solvers. So are we. What we need to do is solve problems for each other's clients where there can be compatibility... not competition.

It would be a very powerful meeting indeed if a client's CPA AND agent/advisor is recommending (or at least both attending the same meeting) a particular financial course of action.

I wouldn't use this as my primary prospecting method... especially when new. But if you're in a networking group with a good CPA... then you're both 'hungry' and should be working to synergize the opportunities between you both.

 

[scagnt83]

Although I do not do it, I know of more than one agent who successfully works with CPAs. But most do not pitch it as an "added service". And all are veterans, not green agents; CPAs are well aware of the average life span of the average green insurance agent.

 

[Cash]

You know what, I was also thinking that this guys brother in law must a high power CPA , and he is trying reverse engineer that into a "system".

No doubt that an alliance with a CPA would be awesome, I am just skeptical of anyone that proclaims to make a ton of money working 1 day a week.

Especially with his "I wasn't making any money" spill when he was making a ton of money with that many clients.

If memory serves, he said something about the clients with 100 million dollars that the CPA's have. $100,000,000!!!

There is exactly one billionaire in my entire state! How many people have 100,000,000? I doubt that many. And I bet most of them are from out of state and just wanted to live in Charleston.

It just goes to show the best way to make money marketing is to market marketing.http://cashdillinger.com/2014/09/marketing-blogs-suck/

 

[MW Agent]

I know others that get decent CPA referrals. One guy in my office had a good referral source until the CPA died. A couple thoughts:

1. If this guy had 860 active clients for AUM/life insurance, he was rolling in dough already and must have had a good process to get there. It seems crazy to walk away from all that money.

2. Instead of talking about past big sales he has made, he is discussing one potential sale that might net him $400K once completed.

3. If you find this golden goose, do you really want to bank all your revenue on him keeping you fed? People die, sell their business, or change partnerships. I can't imagine a CPA would care for a person coming in one day a week and writing big cases based of their recommendations. Maybe if your dad is a CPA.

4. He said advisors are out to make money off of clients, while CPA's are out there to help clients with their money. Not true. Both are trying to make money off their clients.

5. If you are making huge money, why bother doing sales training for a small group of agents where you will make a few extra dollars? Why not find another Golden Goose, work Thursdays as well as Friday, and call it a life?

This guy may be legit, I don't know. But there is enough smoke signals that I would investigate it further before doing anything with his operation.

 

[agentinsouth]

I do a very good job getting referrals from mortgage brokers and REALTORS for home, auto, and life, etc... It is now time to ditch those sources who consistently send lower business and focus on my sources that send better clients. I am thinking about adding CPA's as an addition referral source to my current referral network.

What are some successful strategies and techniques you use to encourage CPA's to refer their clients to you?