From `all-talk' to `a business model'
In the world of medicine, referrals happen all the time. The word `referral', for starters, means `the act or process of referring somebody or something to somebody else, especially of sending a patient to consult a medical specialist,' as explained on http://encarta.msn.com. Many accountants too share clients with investment advisers on a reciprocal basis, writes Thomas Grady in Making Referral Relationships Pay, from Bloomberg (www.bloomberg.com).
Much of such sharing between practising accountants and others happens `as a professional courtesy, meaning, no compensation passes between the investment adviser and the CPA (certified public accounting) firm when revenue is generated from the shared client', notes the author. A problem with such gentleman's arrangements is that of balance: "More often than not, either the investment adviser or the CPA firm sends fewer referrals through the mutual gate, causing the strategic alliance to deteriorate and finally cease."
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