Harnessing the reciprocity principle with centers of influence

Throughout her career as a financial advisor, Ana Fanlo, a seven-year MDRT member from Davao City, Philippines, has seen the reciprocity principle manifest when working with centers of influence (COIs). 

The reciprocity principle is built on the age-old wisdom of the golden rule: “Treat others as you want to be treated." One of the fundamental laws of social psychology and human relationships is that when you do something beneficial for others, they will be more inclined to reciprocate and do something worthwhile for you. “I learned that doing good things for others does not need to take a lot from you, but it goes a long way in building and cultivating relationships, especially with influential people, that will benefit our work as financial advisors,” Fanlo shares.

Fanlo's journey has illuminated three ways financial advisors can harness the reciprocity principle by generously giving to others.

1. Build genuine friendship
   Before transitioning into her role as a financial advisor, Fanlo was a dedicated housewife who seized every opportunity to connect with others. During her daily routine of picking up her daughter from elementary school, Fanlo forged a deep bond with a fellow mother, a hardworking entrepreneur. She confided in her friend about her aspiration to become a financial advisor, and the response was overwhelming. "I saw it as a career that would allow me to help people while still fulfilling my maternal responsibilities. My friend excitedly told me she’d be my first client as she was confident I’d do well," Fanlo shares. After her friend started referring people to her, Fanlo realized how successful and well-connected she was.
   
   While those referrals came to Fanlo as a financial advisor, she made it a point to avoid approaching them with insurance policies immediately. "I make it a point to get to know them first over coffee and understand their needs and challenges. My treat. Then and only then will I craft a policy that addresses their requirements. I’m deliberate about it."
   
   
2. Give support in difficult times
   Fanlo's commitment to her clients goes beyond financial advice; she stands by them during life's most challenging moments. When her friend, a client, faced her mother's battle with cervical cancer, Fanlo's expertise came to the rescue. The insurance policies she had previously secured for the family significantly eased the burden of medical bills, solidifying her relationship with her client and opening doors to new opportunities.
   
   Her Muslim friend became a COI for Fanlo in Muslim communities in Davao, known for being resistant to insurance, preferring cash and more traditional and tangible investments. Her friend referred her to prospects and even encouraged Fanlo to use her family’s story as a case study. "Similar to my approach to the others, I made friends with them first. As we slowly get to know each other’s backgrounds, such as our professions, life situations, and financial circumstances, I share how insurance can help them during unexpected health challenges,” Fanlo says.
   
   
3. Share knowledge and offer service
   Fanlo found her dedication to a deeper purpose as a financial advisor often inspires people to become COIs for her. Even when confronted with someone who initially sought compensation for referrals, Fanlo managed to change their mind. “I enlightened her about my work, its value to clients, and the protection life insurance provides.” Fortunately, her friend recognized the importance of helping loved ones over seeking referral fees and started referring more people to Fanlo.

Fanlo reiterates, "In our line of work, it is important to treat clients and the people around us the best we can, as they can be our COIs. You will be top of mind for referrals because they experience firsthand what you can do. I even go beyond the client-advisor relationship, as I become their best friend who will listen to their concerns, their sister who will understand their life situations and provide practical advice, and even their driver who will assist them with their errands!" 

  

Contact: MDRTeditorial@teamlewis.com