CPAs

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Oct 21, 2009 5:33 pm

Has anyone had much success with prospecting, cold calling or walking to local CPAs? What about realtors or small banks with no financial advisors?

Oct 21, 2009 9:15 pm

An alliance with a small bank that does not have a financial advisor program can be very effective.  You can set up an arrangement that they receive a percentage of revenues off the clients they refer or initiate.  The bank gets fee income revenue with none of the liability or cost to carry an employee or clearing company.  This arrangement takes a while to develop the proper trust, but it has proven to work for several advisors. 

Oct 22, 2009 5:00 pm

Hi Steve- I am no expert, but that might be a good market for some CE seminars. you might need to partner with someone on this (lawyer/dealer) but CPAs do need continuing Ed and they are likely a great referral source, so providing something of value on a regular basis for them will help you make contacts and begin to cultivate referral centers. Just a thought!


Good luck!
Oct 22, 2009 8:15 pm
CashFlow:

An alliance with a small bank that does not have a financial advisor program can be very effective.  You can set up an arrangement that they receive a percentage of revenues off the clients they refer or initiate.  The bank gets fee income revenue with none of the liability or cost to carry an employee or clearing company.  This arrangement takes a while to develop the proper trust, but it has proven to work for several advisors. 



Is this legal?

Oct 22, 2009 8:20 pm

One of the mistakes that many advisors make with CPAs is treating them like CPAs.  What I mean is that there is nothing about being a CPA that gives them any investment knowledge.  They also don't have financial planning knowledge.  All that they have is tax knowledge and unless they are doing personal returns, they may not even have that much.  Treat them like anyone else.  This gives you the best chance to get them as a client. 

Oct 23, 2009 8:00 am
anonymous:

One of the mistakes that many advisors make with CPAs is treating them like CPAs.  What I mean is that there is nothing about being a CPA that gives them any investment knowledge.  They also don't have financial planning knowledge.  All that they have is tax knowledge and unless they are doing personal returns, they may not even have that much.  Treat them like anyone else.  This gives you the best chance to get them as a client. 



I was about to make this mistake.  Thanks for the perspective. 

Oct 23, 2009 9:02 am

Absolutely it is legal.  We have been doing this for a while.  I know LPL has programs designed for this as well.  I am sure RJ has similar alliances.

Oct 23, 2009 9:22 am
anonymous:

One of the mistakes that many advisors make with CPAs is treating them like CPAs.  What I mean is that there is nothing about being a CPA that gives them any investment knowledge.  They also don't have financial planning knowledge.  All that they have is tax knowledge and unless they are doing personal returns, they may not even have that much.  Treat them like anyone else.  This gives you the best chance to get them as a client. 

 
I would echo that.  I was meeting with a CPA friend of mine yesterday, and he basically said that he doesn't like offering advice to clients about investments, because that's not his game.
 
Then in the same breath said "but if a client pushes for some thoughts on what to do when the market is down, I tell them 'well if you get to the point where you have lost 40 or 50%, and you can't stand losing anymore, then that's the time to get out'."
I thought, 'gee that's really good advice'.  Hope he never talks to any of my clients.
Oct 23, 2009 11:45 pm

CPE seminars on a quarerly basis will capture CPA relationships. Lunch sminars to realtors to talk about ways to help their prospects get liquidity (Securities backed loans, for example) also get you some headway with realtors.

Relators, howver, tend to have little to invest, they tend to invest in what they know...real property.  They love to learn about self directed IRAs.
 
 
 
steve246:

Has anyone had much success with prospecting, cold calling or walking to local CPAs? What about realtors or small banks with no financial advisors?

Oct 25, 2009 2:44 pm

I target smaller CPA shops... one or two guys/gals... not the huge firms and just do the Jones thing and come in and introduce myself.  Sounds simple and hokey but they have responded well.  Keep going back with ideas for them and their clients... best way is to make it a warm call and visit a CPA that you share a mutual client with.  I simply find out who my clients use and if it is someone I don't know, I get the client's ok to use their name and go meet their CPA.  Takes a while to develop the relationship but you gotta start somewhere.