It started out as a simple conversion from a term life policy to a permanent policy. But there was more to the issue than just that.
When I visited a 79-year-old orphan client in his assisted-living facility, I learned his home was paid for, but he was paying several thousand dollars a month for assisted living, and he wanted to return home. Luckily, I had a senior services business alliance I could fall back on to help him. I put him in touch with my alliance's in-home care specialist, and we were able to make it happen.
When businesses that serve the same market come together as a team, called a business alliance, you can bring your clients added value and you can get new business through referrals.
Why a business alliance works for you and your senior clients
Business alliances are useful for selling to any market segment, but they are a particularly powerful tool when selling to seniors. Frequently, seniors do not have the energy, health or knowledge to build their own team of professionals. A one-stop shop is a powerful service and life-changing gift to seniors and their families. The ability to trust professionals and the peace of mind that brings to them is huge.
My 79-year-old client would tell me, "At my age and health, I have difficulty understanding things I used to understand. I need someone I can trust who will make things simple. I can trust you."
What a gift that statement was.
ReMax Realtor Karen Fulghum and I founded the Senior Resource Alliance in the San Antonio, Texas, market in 2006, bringing together professionals who serve the elder market.
We've found that with a business alliance, you can:
- Exchange endorsements with your alliance partners. You'll add credibility to your business and gain your potential customers' trust.
- Increase customer service by solving your customer's problems faster with a larger base of professionals who can meet their needs. You are telling them you are there for them when life gets too complicated. Such service will set you apart.
- Increase word-of-mouth promotion of your business.
- Share advertising and marketing costs.
How to build an alliance
Our team grew organically - as we faced clients with different needs, we invited other members to join us. Today, in addition our financial and realty services, our alliance includes an elder law attorney, CPA, reverse mortgage specialist, geriatric-case manager, Medicaid/Medicare supplement insurance specialist, relocation specialist, in-home care agency, durable medical equipment service and nursing home/assisted living/independent facility representatives. Notice there is no overlap in professions, a critical element to a successful alliance.
Here are some action items when starting your own alliance:
- Brainstorm. Who are your customers and where else do they go for services? What is the niche you want to serve? What other professionals serve that niche?
- f you don't know anyone who offers the services that would be a good fit, get referrals only from trusted sources.
- Mechanics of the system are up to you. It can be a formal group or just a handshake. We have a DBA and rules of conduct. With our DBA, we have a name we can use as a group. It formalizes the structure beyond that of a referral group. We've also written articles and given seminars as a group. But an informal alliance can work, too. It's the commitment of the professionals, not the structure that will make the alliance work.
- Start with a monthly meeting for sharing leads -- everyone should bring something to the table.
Tips for a successful alliance
Choose your team members carefully -- your relationships with them can affect your relationships with clients. While a good team can lift you up professionally, untrustworthy team members can damage your reputation. Also, a member should not be there solely to collect leads, and they shouldn't have their loyalty elsewhere. Finally, make sure the members are established and in their field for the long haul.
By starting a business alliance to serve seniors, you can provide a holistic solution to a client's problem and make real changes in people's lives. For example, in one situation, our alliance's attorney was asked to write a will for a senior. She discovered the senior was living alone and unable to care for herself. The group moved in and took care of her: She was introduced to an assisted living facility; the realtor sold her house; the financial advisor turned equity from the house into income through an annuity; a relocation specialist managed her move; and a medical equipment company got her a wheelchair.
In addition, we kept frequent communication with her son who lived in another state. We turned a life-changing process into a seamless enterprise, and made a wonderful friend in the process.
A higher calling
Serving seniors is an honor for financial advisors. We have the opportunity to make a difference in lives. Seniors are vulnerable, and, unfortunately, there are people who will take advantage of this vulnerability. Sometimes seniors have difficulty comprehending complex issues, compounding how critical it is that they can turn to someone they trust. When you have a network you can turn to for your senior clients, you are providing huge value.
There is no guarantee your alliance will generate a huge volume of business, but you'll find the quality of business is solid. I have probably gained a dozen clients through my network. But I see it more as a service to my existing clients.
The most successful financial advisors are those who truly look after the needs of their clients -- those who go the extra mile. Serving seniors is not for those who want to make a quick buck. You'll have to be prepared to serve clients in ways that don't always fall into the realm of financial planning. But that's OK. If you build an alliance from the angle of serving the client, the financial rewards will come back to you. You will provide a better product, be trusted and the customer will be happy -- the keys to all good sales.
Diana Scheel, CLU, ChFC, FLMI, FLHC, is a financial advisor with Sapient Financial Group and co-founder of the Senior Resource Alliance, which provides a full range of services for seniors in San Antonio, Texas. She can be reached at dscheel@finsvcs.com.
Scheel is a registered representative of and offers securities and investment advisory services through MML Investors Services Inc., Member SIPC. One Union Square, Suite 300, 10101 Reunion Place, San Antonio, TX 78216. (210) 342-4141.
