Managing Your CPA Partnership Pipeline: A Practical Guide
Real-World Case Study Numbers
Charles shared his actual pipeline metrics, providing valuable insight into what realistic numbers look like:
- Started with 26 initial CPA meetings between August and January
- Added another 38 meetings after fully implementing the program
- These meetings converted to 6 initial CPA relationships
- Currently maintains 3 active partnerships
- 2 partnerships naturally dissolved over time
- 1 CPA opted out early, citing plans to coast until retirement
This real-world example demonstrates that even with strong initial numbers, the final count of producing partnerships will be much smaller than your initial meeting count.
The Pipeline Reality
Expected Conversion Rates
The data consistently shows a 30-50% success rate at each step of the process. Like a funnel, each progression gets smaller. For example, if you start with 10 initial meetings:
- About 4-5 might progress to a second meeting
- 2-3 might agree to partnership
- 1-2 might become producing partnerships
This isn't discouraging - it's simply the reality of building quality relationships. Understanding these numbers helps set proper expectations and activity levels.
Common Scenarios to Avoid
Too Many "Yeses"
If you're getting an unusually high acceptance rate, it often indicates insufficient qualification. As one advisor discovered, CPAs might say yes simply to be polite or to end the conversation. These rarely turn into productive partnerships. You need to dig deeper in initial conversations to ensure real commitment and alignment.
Too Few Partnerships
When conversion rates fall well below the expected range, it indicates a problem in your process. The key is identifying exactly where the breakdown occurs:
- Are initial meetings not leading to seconds?
- Are partnerships agreed to but not producing?
- Are CPAs dropping out after initial enthusiasm?
Each scenario requires a different solution, but you can't fix what you don't measure.
Managing Multiple Opportunities
The Two-Track Challenge
The discussion highlighted a common situation: an advisor found a business owner generating $5-10M in revenue and paying $200K in taxes. While this represents an immediate opportunity, they also recognized the importance of developing the CPA relationship. This creates a classic two-track scenario.
Balancing Act Metaphor
One participant effectively used the metaphor of the golden egg versus the golden goose:
The Golden Egg (Current Clients): "You need to eat today," as one advisor put it. These are the immediate opportunities that keep your practice running. They can't be ignored or postponed.
The Golden Goose (CPA Relationships): Think of this as building your future pipeline. Like raising a goose, it takes time and investment before you see returns. However, once established, it provides ongoing opportunities.
Action Steps
Priority Framework
The discussion emphasized getting the foundations right first. An advisor shared how following the program "step by step, week one, week two, week three" led to surprising success. The key steps:
- Master the Model Don't rush to hire or expand before you understand the process completely. Set a goal of two new CPA conversations weekly and maintain this for several months. This creates the foundation for everything else.
- Track Everything Keep detailed records of:
- Initial meetings
- Follow-up meetings
- Conversion rates
- Points where CPAs drop out
- Reasons for success or failure
Activity Targets
The group agreed that consistent activity is crucial. One advisor shared how maintaining two CPA conversations weekly led to steady pipeline growth, even when some relationships didn't work out.
Keys to Success
The Long View
Success in this model requires accepting a 12-24 month development cycle. As one participant noted, "Even once they say yes, you know people don't like change, they get in their own way, they get busy." Building lasting relationships takes time, but the rewards are worth the investment.
Balanced Approach
The most successful advisors maintain steady activity in both immediate business development and long-term relationship building. One advisor summarized it well: "You have to feed the machine while you're building it."
Metrics-Driven Decisions
Regular review of your numbers helps identify:
- Where your process needs improvement
- Which activities are most productive
- When to adjust your approach
- How to allocate your time and resources
Remember, these numbers aren't just statistics - they're indicators of relationship development and business health. Use them as guides, not absolutes.
