Tweet

Generating Referrals From Clients

Written by: Donald F. Pooley

Article Overview: Imagine if you knew about a time-tested technique that would bring you into contact with prospects, but seldom used it.

Generating Referrals From Clients

Imagine if you knew about a time-tested technique that would bring you into contact with prospects, but seldom used it.
That is precisely what many financial advisors do every day, missing untold opportunities in the process. They readily acknowledge referrals are important for generating business, but in the next breath they admit they don't often ask for them or don't ask at all.
Advisors dislike referrals generation. They fear rejection. They think it's unprofessional. They worry that it will make their clients uncomfortable. The greatest stumbling block is that advisors don't know how to seek referrals effectively.
There are several ways to go after referrals: Use interviews to learn who clients associate with. During a meeting, a client may say that he enjoys golf. Ask who he plays with.
This will help you learn about his circle of friends and business associates. Later, you could invite the client to a round of golf and suggest that he or she bring some of those people. Each of those friends is a potential client.
Listen for change. When meeting with a client, listen for hints of change affecting people they know. Change is a great opportunity to introduce solutions to their problems.
Most clients will unconsciously offer you insights into the relationships in their lives, and you need to be aware of these signals and recognize them as gateways to referrals.
You need to find a way to meet these people. When you do actually meet them, chat with them about their lives and interests and don't push your business. At the same time, look for problems you can solve.
Offer the same quality service to a client's friend. Say your client is pleased with the retirement planning you've provided and tells you. Ask him if he has any friends who'd also like to know when they can expect to retire.
Instead of asking for new business, you're offering to make the client's friend happy. When seeking referrals, be sure clients understand that there is a benefit for them as well.
The benefit to the clients is twofold: 1. you have more time to work for them, because you spend less time marketing and making cold calls, and 2. the clients have an opportunity to be a hero by helping someone else.
Use rewards. Psychology 101 says the way to get a person to exhibit a desired behavior is through positive rewards. Do you currently reward all the people who give you referrals?
Is it done consistently? The dollar amount of the reward is not as important as providing rewards consistently.
Build trust with your clients. Build trust by listening to their needs, and delivering what you have promised them.
If your clients trust you, they will give you referrals.
Follow up. When you are given a referral, a person trusted you enough to share your name with a friend or associate. It is vital that you follow up with both of them. The prospect may never pan out as a client, but you need to at least contact them. You also need to thank the referror.
Use other cost-effective referral techniques. Here's an easy one - all you need is a piece of string and a $100 bill. Clip the $100 to the string and hang it from the ceiling in your office. Every client who comes into your office will ask why you have money hanging from the ceiling? You explain that you will give them the $100 if you forget to ask them for a referral.
And now that they've brought it up, you might as well ask!
Here's another: Ask clients to name the four people they would want to spend their retirement with. Their answer will give you the names of four prospects.
There are many techniques and strategies to gain referrals from your clients. The key is to find one or two you are comfortable with and use them.
Martin R. Baird, author of "The 7 Deadly Sins of Advisor Marketing" is president of AdvisorMarketing.com , the premier Internet-based source for free marketing advice, tools, and information for self-driven, success oriented, financial advisors who demand information to help them market their practice. Reach him at 480-991-6421

Related Articles
  Getting Referrals
  “Six Strategic Things To Remember When Requesting Referrals, According To Your Strategic Thinking Business Coach”
  How to Get More Referrals, More Prospects & More NEW Clients During a Recession
  A Common Misconception About Generating Referrals thats Severely Limiting the Amount of Referrals You Receive
  Who Else Wants More Referrals?

Article Tags:



Related Forum Posts
Re: Who Did You Learn Most From and Why? - Hi Martin, You missed out on the most essential community that helps you grow - Your Clients. Well, I believe that my Initial Clients have been the ones who have given me the moments of 'aha' in my business. They have stood by me even when I was a starter and that has helped me shape and build my stand. They have helped me grow as an entrepreneur, learn to have loads of patience and make the most of what comes across. They have also helped me to strengthen me as a person. btw, personally speaking, my Grandfather always kept me on track and lent me emotional support when I was down in any matter - be it business or otherwise.
Re: What Do You Want To Be Taught? - Hi Jeff, Congratulations. Basically I think there is a need to discuss all kind of internet marketing methods, all leading to the big problem - Generating Traffic. My biggest challenge is time management, and tracking. I recently noticed that my tracking is lacking something, and i don't know what.
Re: Making Money in 2011 - Hi GT Yes I did make some improvement in my traffic generation but not nearly where I want to be, still have a way to go. Generating targeted traffic is not as easy as some people say it is. Yes you can get traffic, but unless it is targeted it does not serve much purpose and is really just a waste of time and effort. MichelleJ
Coaching Women vs. Males - Tami, Do you have any clients from Eastern Canada? I was wondering if Coaching Clients from either Coast was any different. Also is it different coaching women entrepreneurs vs. males?
Internet Marketing is the best business in the world - I have 7 reasons for saying this 1. You develop it once an sell it many times 2. You have no inventory. 3. Clients pay you before they download your product 4. You earn money 24/7 5. No face to face selling 6. You can outsource the production 7. You can do it in your room


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Think Time

Are You Too Good for Your Job?

Stress: What Causes It and How To Deal With It

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.