Investing In Referral Partnerships: The Key to Financial Success and Control

by | November 30, 2022

In the recent annual Berkshire Hathaway shareholders meeting, Warren Buffet and Charlie Munger talked about the difference between investing and jumping in and out of the stock market.

Investing they say is about doing your homework, being patient and building for the long term.

They believe market players use the stock market as a “gambling parlor” where the strategy is one of timing it right, with the hope of getting lucky.  This simply does not work as a long term strategy.

Buffet and Munger believe the best investment that one can make is in themselves. Improving skills through continuous learning and attracting people to do business with you using “trust” as the glue that makes the relationship work. This is what will create significant value long term.

A service professional’s value

If you are in a service profession, such as being an attorney, accountant, banker, consultant, broker, etc., you are likely invested heavily in your education. That education is a valuable asset that makes you marketable and attractive to a firm or company that needs your technical services.

As your experience increases, your career advances. Your salary rises within a limited scope. That is, your services are valued up to a certain level.

The reality is, you become a liability if your compensation surpasses the revenue your work brings to the firm. Your role then becomes replaceable by those who are on their way up and are more affordable.

Are you goal driven to create the life you want?

Like most of us, financial goals include taking care of ourselves and those we love most. Further, we want to be able to afford nice living arrangements, vacations, education for our children, and a safe retirement. How much money do you need to accomplish these goals?

If you are driven to achieve these goals, you must make sure the revenue you drive to yourself and your firm is multiples of your compensation requirements. Why? The revenue you drive  must cover a percentage of firm overhead plus your personal income requirements.

Your personal income requirement is based on what you require to take care of your family, pay taxes, lifestyle, education, retirement needs, etc.

Example: $$$$ Revenue you create must be multiples of your $$ compensation

A small percentage increase in salary each year will not get you to your financial goals because that increase just keeps you even with the increase you see in your everyday living expenses and future cash needs.

Here is a PBS Frontline documentary “ The Retirement Gamble” that speaks to the reality of having the right funds to retire.

How does one create the financial success and control over their career in a service profession?

The short answer is being a consistent revenue producer!

Whether you decide to be in business for yourself or be part of a company or firm, you must invest in the effort to be a significant revenue producer if you want financial security.

How do you become attractive to firms (whether your current firm or a new one) that will pay large signing bonuses, revenue growth incentives, or equity via partnership interests, stock grants or options?

As a skilled professional, you are a business within a business. Your greatest asset is the investment you have made in your knowledge and experience that clients value and will pay for.

But ,you must also bring in new revenue through new clients and expanding existing relationships. As you build your book of business, you become more valuable to your firm and will share in its growth in revenue and net income.

Your income is more likely to be what you want it to be, not what someone else says it should be. Why? Because you become highly marketable. Companies will pay those who drive revenue to their firms.

How do you become a revenue producer?

You must invest the time and develop trusting relationships with those who are willing to refer you business. Clients who value your service will refer you business. Other professionals that serve similar clients (in your market and market segment) will refer you business and because of your investment in relationships you are in a position to reciprocate. It’s pretty simple. Stay close to those you can help and can help you.

It is about building relationships with new clients and those who serve them. They value a professional relationship with you because you have demonstrated that you can help them enhance their businesses and their lives by helping them solve problems.

To get the right client referrals is about investing in professional relationships.

Think about it. Why is someone going to pick up a phone and call you with a great client referral if all they have done is met you at a recent networking event? There is no relationship and certainly no commitment. They can call whomever they want. You are gambling with “hope” as a strategy which as you know will not work long term.

How are referral partnerships developed?

Getting the right client referrals consistently is not about attending every networking event in town.

It is about investing in and creating long term REFERRAL PARTNERSHIPS. By investing in just 10-15 REFERRAL PARTNERSHIPS over a two or three year period, you will be able to hit or exceed your numbers.

Becoming a consistent revenue producer long term will significantly increase your value to your firm and your business. As a result, you will have more control over your career and will enjoy the financial benefits for you and your family that the investment provides.

People do business with people they can count on.

Please take a look at our informational website at . We offer the information and tutorials to help you have a clear understanding on how to invest in profitable REFERRAL PARTNERSHIPS that get results over time.

Download our app today and begin your journey to financial success and control

Our new mobile app, Relpip, ( free) is on the Apple App Store and Google Play Store and provides you with the tools and process to help you create the right REFERRAL PARTNERSHIPS that can change your life.

Our community is growing and if you decide to stay in the community, you can always upgrade your membership to be with other like minded professionals who might also be potentially good REFERRAL PARTNERS.

We wish you much success and hope to see you in the Relpip community!



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