The 10-year yield continued to do little with regards to movement.  The yield is still in its trading channel (see last week’s graph).  Jobs remain strong; and companies are reporting very positive earnings.  Outside of the lack of harmony in Washington, it seems like the economy is doing fine.

Introductions:

I want to review this topic as it is always one that comes up.  In doing an introduction, there are many directly affected parties.  Let me use an example so this is clear.  Let’s say that a Realtor wishes to be referred to a CPA (for the benefit of one of the Realtor’s clients).  So far, this is very simple.  But let me spin this a bit as to one approach versus another; and then the results.

First, let’s look at the less than optimal way to do this.  The Realtor asks the Escrow Rep for the names of three CPAs.  The Escrow Rep asks around and gets three names and provides them to the Realtor.  Realtor’s client then does the heavy lifting to see which one is best for their needs.  Although I have never been a fan of the 3-name approach; I guess it provides some benefits to the client.  I just feel it is a very ineffective approach that does not help much.  It also dilutes the power of a really good effective referral.

Stepping back for a moment, I know why folks do this.  It is how they perceive networking and connecting.  Often, they feel they need to get their business cards out to as many people as possible.  It is definitely quantity over quality.  And, if this is how they have done business forever, it is difficult to change.  My own suggestion is to go deeper with fewer people.  Slow down and really get to know the strengths of the people you will potentially refer.  Think about introductions as “business dating.”  For some of you this will be difficult.  There will be many of you already laughing as you know many that seem to always be looking for dates when networking (just thought I would state what I know some were thinking there).

Okay, so let’s see about doing this in a different way.  The Realtor asks the Escrow Rep for the names of three CPAs.  The Rep then asks the Realtor what does their client find important in their relationship with their CPA (and why the need to change now).  Hopefully, the Realtor asked the client this in the first place.  But, even if they did not, the Realtor can go back to the client and go much deeper to figure out their needs.  Now the Realtor can state what is important to the client when working with the new CPA.

This allows all to provide something of value to the client.  It also helps paint a picture of the right type of CPA to refer.  One of the many benefits of this approach is that no one’s time is being wasted.  No one is being sent to the wrong connection.  I even take it one step further.  I ask the CPA if this is the type of client that they desire.  I get permission from both sides so that when all meet, it is a successful “business date.”

Candidly, very few people take this amount of time when asked for an introduction.  However, the ones that take this approach are the ones I, personally, focus on.  I know I tend to go on and on about many topics.  And, I have done it again here.  However, it is my attempt to get all of us to honor all of our relationships.  As our connections and clients know we go deep with our relationships, then we are seen as more integral to the success of all.  And that breeds more and more success.

Okay, that is it for this week.  As always, please feel free to contact me with any of your strategic financing questions or concerns.