IN THE FIELD -- A winning combination

Accountants are usually overlooked by brokers, but these number crunchers can often prove to be the winning referral partnership.

In what is still an uncertain economic environment, it’s important for brokers to have strong referral relationships with partners who can provide them with a steady pipeline of leads.

But while many brokers enjoy strong ties with real estate agents, for example, fewer have accountants in their sights as prospective referral partners – meaning they are missing out on potentially lucrative business, according to Tiffen & Co and The Mortgage Detective director David Friend.

Mr Friend says there are several reasons why accountants make good referral partners.

“Accountant-referred customers tend to be in strong financial positions, are often self-employed, and can become good repeat customers,” says Mr Friend, who derives more than 20 per cent of his business – and his top five clients – from his referral relationship.

But he is quick to point out that a successful referral relationship involves give and take.

“My referral partner refers clients on to me and I refer clients on to them. It is not a competition,” says Mr Friend, who has enjoyed a strong referral relationship with an accounting firm for the past two and a half years. He says the firm has a national presence and a client base that ranges from mum and dad residential upgraders to businesses with an interest in commercial property.

“If they give me three leads in one month, they do not expect the same number in return.

“Rather, we have a very friendly and mutual agreement with each other.”

Mr Friend met the directors of his accountancy firm referral partner at a Christmas function three years ago, and they arranged to catch up in the New Year. A strong rapport was built and as a result, “[we] decided it would be beneficial to both parties if we entered into a business agreement”.

“I have been in this business nine and a half years and never had such a good relationship in place,” he says.

Fundamental to the relationship is trust. “Trust has always been really important to me,” says Mr Friend. “I won’t enter into a business relationship with [just] anyone and often the right referral partner is hard to find.”

Mr Friend says before striking up a referral partnership brokers should satisfy themselves that their prospective business partner is the right fit and that “their morals and mindset echoes your own”.

“In my career as a broker, I have entered into some unrewarding relationships and been forced to cut them later. My advice is to take your time, do your research and make sure you build up a friendly relationship with the business before jumping in feet first.”

GIVING BACK TO THE BIZ

Referrals from accountants can be highly lucrative for brokers. And the good news is – there is no shortage of accountants in Australia.

In fact, there are more than 157,000 fully qualified accountants operating throughout the country.

But for brokers to build a relationship with a

well-respected and highly qualified accountant, Mr Friend says they need to offer good, quality business in return.

“Quality and accuracy are two traits accountants highly value. I advise any broker looking for a long-term relationship with an accountant to deliver both,” he says.

“A referral partnership is just like any other... no money switches hands between my referral partner and I, however, I do like to provide them with quality leads that have the potential to become quality business.”

Mr Friend says accountants are also looking for well-structured loans “that are correct both legally and in terms of tax. Brokers need to know their way around these issues,” he says.