Beyond the Initial Agreement
Many professionals believe that getting to "yes" with a potential partner is the hard part. In reality, transforming that agreement into revenue—what we call "monetizing the relationship"—is where the real challenge begins. Here are the four critical actions that separate successful partnerships from failed attempts.
1. Formalize the Relationship
Don't leave key elements to chance. Address these crucial points upfront:
Revenue Sharing
- How will each party make money?
- What are the split arrangements?
- Which services generate shared revenue?
Don't make the mistake of waiting until after revenue is generated to discuss these points. Have these conversations early and document them clearly.
Roles and Responsibilities
- Define each partner's expertise areas
- Establish communication protocols
- Set client interaction boundaries
- Document approval processes
Exit Strategy
While not pleasant to discuss at the start, define:
- Conditions for ending the partnership
- Process for unwinding joint client relationships
- Handling of ongoing revenue streams
2. Get Educated Together
Never assume partners understand each other's business. Focus on three levels of education:
Basic Professional Understanding
- Core services and capabilities
- Basic industry terminology
- Regulatory requirements
- Fee structures and business models
Advanced Concepts
- Estate planning strategies
- Succession planning
- Tax mitigation techniques
- Business valuation
- Cost segregation
Ongoing Education
- Industry changes
- New strategies
- Regulatory updates
- Market developments
3. Implement Weekly Meetings
Success requires consistent communication. Weekly meetings should:
- Follow a structured agenda
- Review active cases
- Discuss new opportunities
- Track deliverables
- Maintain accountability
If weekly seems too frequent, bi-weekly is the absolute minimum for the first six months. Any less commitment indicates a partner isn't serious about building a real relationship.
4. Script the Introduction Process
Control the controllables by creating a structured introduction process:
Key Elements
- Relationship explanation
- Credentials presentation
- Value proposition delivery
- Service integration description
Sample Introduction
"John, I'm glad you're meeting with Sally today. As I've been looking at how to better serve my best clients like yourself, I realized that given today's complex financial and tax environment, I needed to create strategic partnerships to deliver more value. Sally and I work together to provide comprehensive planning. As a CPA, she brings tax and accounting expertise, while I handle the financial planning and insurance aspects. Together, we can address all these areas under one roof."
Building Long-term Success
The difference between successful and failed partnerships often comes down to execution of these four elements:
- Clear formal agreements
- Mutual professional education
- Consistent communication
- Professional introductions
Remember: Revenue sharing agreements are just the beginning. True success comes from creating an integrated service model that delivers enhanced value to clients while building sustainable revenue for all partners.
Focus on these four pillars to transform handshake agreements into profitable, long-term partnerships that benefit everyone involved—especially your clients.
