Page 58 - The Handbook - Legal and Accounting Networks 81
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Law and Accounting Networks and Associations
Referrals are much more than then in-bound and out-bound cases; they are about using information in the
network. One piece of the information is contacts in a location. This is important but, overall, a very minor
component of the information. The access to resources, including information, is by far the most important
component of referrals.
In-bound and out-bound matters are Type 1 referrals — the hammer, saw, and screwdrivers of the professional
network. They are handled by rules in the profession. For example, in the U.S. legal profession, no referral
fees can be paid.247 The responsibility for payment by the client is defined.248 Usually the client will be
responsible directly to the firm receiving the referral. The referring firm is not liable unless there is an
agreement to the contrary.
Exchange of information is a Type 2 referral. The client needs the matter handled, but there may be many
complex issues that can easily answered by someone on location but not in a book or online. Members can turn
to the network for this information using a “free advice” policy. Today, technologically developed networks
can tap the knowledge of thousands of professionals by doing a search of the network website. These referrals
cement a long-term relationship with the clients who know that they can be fully represented by their firm.
Creativity is required for a referral to be Type 3. They are much more complex because it requires the members
to see the network as not only a toolbox, but also a whole range of utilities that can be deployed because of the
self-interest of the other members. For example, a member could establish a team based on the needs of clients
in different states or countries. The team is actually coordinated by one of the members of the network. Once
this model is developed, the team leader could reach out to other clients they know have businesses in different
locations. Common forms could be written that allow the participating members to reach out to their clients in
a similar way. The documentation could also be shared with other members.
In order for an accounting firm to do an audit, it must have access to policy manuals and checklists. One of the
reasons for joining a network is to get access to these materials. Every accounting network has a manual and
procedures for this type of referral. Only one member firm manages the audit and divides the fees among those
participating in the audit. The invoice may come from the group leader. The referral may be for the long-term,
creating a semi-permanent relationship that extends to other matters.
Many firms systematically advertise they are members of a network.249 Network membership is found on the
website, letterhead, business cards, and brochures. A creative way to use network membership would be to
conduct a client survey of their need for counsel in other states or countries. As feedback, they could introduce
fellow members. The objective is to let existing clients know they can handle their business in different parts
of the world.
Full-scale collaborative effort based upon both geographic representation and the expertise found in the
network firms is Type 4 referrals. While Type 4 referrals are similar to Type 3 referrals, in a Type 4 referral
the degree of collaboration is significantly higher. For example, member firms may wish to share offices in a
location like Washington, D.C., Brussels, or London. They may want to produce common marketing materials
to attract a particular type of client. They may put on joint presentations to common clients or potential ones.250
247 See infra Chapter 6, Marketing the Network – Creating the Brand.
248 See International Bar Association, International Code of Ethics, INT’L BAR ASS’N (1988),
www.ibanet.org/Document/Default.aspx?DocumentUid=A9AB05AA-8B69-4BF2-B52C-97E1CF774A1B: “Lawyers who engage a foreign colleague
to advise on a case or to cooperate in handling it, are responsible for the payment of the latter’s charges except where there has been express
agreement to the contrary. When lawyers direct a client to a foreign colleague they are not responsible for the payment of the latter’s charges, but
neither are they entitled to a share of the fee of this foreign colleague.”
249 See BRIGARD & URRUTIA, bu.com.co/en/ourfirm/global-connections.
250 See Investing in Africa: Current Trends, Association of Corporate Counsel, ASS’N OF CORP. COUNS., www.acc.com/education/investing-in-
africa.cfm.
46
Referrals are much more than then in-bound and out-bound cases; they are about using information in the
network. One piece of the information is contacts in a location. This is important but, overall, a very minor
component of the information. The access to resources, including information, is by far the most important
component of referrals.
In-bound and out-bound matters are Type 1 referrals — the hammer, saw, and screwdrivers of the professional
network. They are handled by rules in the profession. For example, in the U.S. legal profession, no referral
fees can be paid.247 The responsibility for payment by the client is defined.248 Usually the client will be
responsible directly to the firm receiving the referral. The referring firm is not liable unless there is an
agreement to the contrary.
Exchange of information is a Type 2 referral. The client needs the matter handled, but there may be many
complex issues that can easily answered by someone on location but not in a book or online. Members can turn
to the network for this information using a “free advice” policy. Today, technologically developed networks
can tap the knowledge of thousands of professionals by doing a search of the network website. These referrals
cement a long-term relationship with the clients who know that they can be fully represented by their firm.
Creativity is required for a referral to be Type 3. They are much more complex because it requires the members
to see the network as not only a toolbox, but also a whole range of utilities that can be deployed because of the
self-interest of the other members. For example, a member could establish a team based on the needs of clients
in different states or countries. The team is actually coordinated by one of the members of the network. Once
this model is developed, the team leader could reach out to other clients they know have businesses in different
locations. Common forms could be written that allow the participating members to reach out to their clients in
a similar way. The documentation could also be shared with other members.
In order for an accounting firm to do an audit, it must have access to policy manuals and checklists. One of the
reasons for joining a network is to get access to these materials. Every accounting network has a manual and
procedures for this type of referral. Only one member firm manages the audit and divides the fees among those
participating in the audit. The invoice may come from the group leader. The referral may be for the long-term,
creating a semi-permanent relationship that extends to other matters.
Many firms systematically advertise they are members of a network.249 Network membership is found on the
website, letterhead, business cards, and brochures. A creative way to use network membership would be to
conduct a client survey of their need for counsel in other states or countries. As feedback, they could introduce
fellow members. The objective is to let existing clients know they can handle their business in different parts
of the world.
Full-scale collaborative effort based upon both geographic representation and the expertise found in the
network firms is Type 4 referrals. While Type 4 referrals are similar to Type 3 referrals, in a Type 4 referral
the degree of collaboration is significantly higher. For example, member firms may wish to share offices in a
location like Washington, D.C., Brussels, or London. They may want to produce common marketing materials
to attract a particular type of client. They may put on joint presentations to common clients or potential ones.250
247 See infra Chapter 6, Marketing the Network – Creating the Brand.
248 See International Bar Association, International Code of Ethics, INT’L BAR ASS’N (1988),
www.ibanet.org/Document/Default.aspx?DocumentUid=A9AB05AA-8B69-4BF2-B52C-97E1CF774A1B: “Lawyers who engage a foreign colleague
to advise on a case or to cooperate in handling it, are responsible for the payment of the latter’s charges except where there has been express
agreement to the contrary. When lawyers direct a client to a foreign colleague they are not responsible for the payment of the latter’s charges, but
neither are they entitled to a share of the fee of this foreign colleague.”
249 See BRIGARD & URRUTIA, bu.com.co/en/ourfirm/global-connections.
250 See Investing in Africa: Current Trends, Association of Corporate Counsel, ASS’N OF CORP. COUNS., www.acc.com/education/investing-in-
africa.cfm.
46
