Do you wonder why your referral requests always seem to crash and burn?
Bill Bachrach has a theory:
If nobody's finding you, maybe you're not as attractive as you think you are. Do your clients make excuses when you ask them for referrals? Do you they tell you, "I don't know anybody who's looking right now, but if I come across someone, I'll let you know. Why don't you give me a couple of your cards?"
In "Referral failure: it doesn't mean you're unworthy," I respectfully disagreed with Bill's premise that advisors are afraid to ask for referrals because they know deep down that they're not really referable. I also take exception to this notion that clients respond to referral requests with "I don't know anyone," because their advisor is not good enough to refer.
I understand where Bill is coming from; certainly, there are some FAs out there who have some improving to do. But our research suggests that nearly 90% of advisors routinely get the "don't know anyone" or "can't think of anyone" objection when they ask for referrals. And it's not because all of those clients are unwilling to refer. It's because advisors usually don't ask in a way that makes it easy for clients to think of appropriate referrals.
Your client's brain is basically a big database. When you ask for referrals, it's essentially the same as doing a Google search. Ever try Googling without being specific? I don't know about you, but I don't have time to sift through 42,356,356 hits because I didn't type in specific-enough search terms.
If your client is just average, she knows more than 200 people. If she's well connected, that number is much higher. So, when you put her on the spot and ask her a question as general as "who do you know who might benefit from my services?" is it any surprise she comes up empty?
On the other hand, consider what might happen if you gave your client some parameters, such as "Do you know any other women who are also going through a divorce right now?" Now you've narrowed the field from hundreds of acquaintances to a much smaller group. That makes it easier for her to think of specific people and their situations.
So, if you typically hear some variation of the "I don't know anyone" referral objection, odds are the problem is not with your referability, but rather with your referral methodology. Once you figure out who your ideal client is, learn to convey that information to your existing clients, and understand how to ask for referrals in a targeted way, you'll stop hearing those unpleasant words and start getting introductions instead.
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