How to Motivate a Top Attorney (and Client) to Make Referrals

Welcome to Day 12 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question comes from Chris M, an independent advisor from San Diego. Nice work, Chris!

Chris's question will be answered by Mike Schultz. Mike is the publisher of RainToday.com,  a principal with the Wellesley Hills Group, and coauthor of How Clients Buy: The Benchmark Study of Professional Services Marketing and Selling From the Client Perspective.  Mike is a frequent speaker and consultant to service firms worldwide on topics such as service firm branding, marketing, lead generation, and rainmaking.

Question: "I have a client who is one of the top ERISA attorneys in the area. He is also a partner in a large firm. I have been trying to network with him. He personally only does alternative investments with me (he has no interest in anything else). He has all the business he can get, so is not incentivized by networking. How can I motivate him to refer corporate clients (or other attorneys) to me?"

Mike Schultz's answer: "I am a top chef. I have a high-class customer that comes to my restaurant to get a fresh-baked cookie every day after he has two filet mignons from the restaurant down the street. He does this every day. He comes in. He's full. Wants a cookie. But I want him to have the grilled calamari and the fettuccini carbonara special along with the cookie. What can I do to get him to eat it all?"

There's no piece of advice that is a "secret" to get everything changed around. Like most networking and selling, it's a long haul and if you keep plugging at it, over time, you might get him to skip the steaks one day and try the fettuccini. But you might not. 

What you need him to see is the value of paying attention to you more, and giving you more time and brain-space. So my question to you is, why should he do other things with you? Why should he give you referrals?

I'm guessing you think (as do most financial advisors) that, "Once I get a client, they're with me for life." Well, perhaps he already has someone for the other financial matters that he likes, trusts, and won't switch away from. He might have three guys and doesn't need a fourth. They get the referrals.

But... one of them might move to Peoria one day. You'll find that someday he might say, "All right, let's talk. I have a few people to introduce you to," if you:

• Consistently deliver strong value with your alternative investments.
• Pleasantly but persistently keep communicating with him about the value you can provide other than what you're doing.
• Do this for the long haul.
• Ask for referrals the right way (see below).

I'd also suggest that you speak with him straight out. "Jim, I'm looking to expand my practice in X, Y, and Z areas. I've mentioned this before and I've gotten the sense that it's not on your radar screen to refer people to me. But I'd like it to be. Can you tell me 1)is my sense correct, and 2) if it is, can you tell me what I can do for you and/or your clients and colleagues so that you'd have enough faith and confidence in me to give me referrals?"

You might find that:

• He likes the straightforward talk and says, "OK—referral time for you." (Wouldn't this be nice?)
• He tells you, "OK—here's what you need to do to get into my circle." (And then you'll at least know.)
• He tells you, "Here's where I've been disappointed in you, and why you haven't gotten referrals." (And then you'll learn a lot and, if you're interested in growing your practice, you'll do something about it.)
• He says, "There's nothing you can do. I have my people. I'm retiring in two years. I like you, kid, but find someone else." (And then you can choose to move on or not, but you'll know where he stands.)

Here's what to avoid: As you constantly communicate with him about your value, don't pitch him. "Sell sell sell" won't help you.

Instead, send him articles, research, case studies, and other helpful information for him in the areas where you want to position yourself.

Send him referrals. Number one rule of networking: give to get.

And remember—as good as you might be—there is still a numbers game component to it. It might be in the cards to get him to eat the fettuccini, or he might just not be going there. But if you had 10 of these guys in the exact situation, and you worked them all as per above, you'd win over your share.

Good luck.

Got questions or thoughts about today's challenge or Mike's response? Post a comment.

How do I Get My Bank Colleagues to Send Me HNW Referrals

Welcome to Day 11 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Dylan, an advisor from British Columbia, Canada. Congrats, Dylan!

Dylan's question will be answered by Bob Cobb, the President and CEO of Ultimate Bank Advisor, a sales training and coaching company dedicated to helping advisors build the practice of their dreams. Bob's 20-year brokerage career included six consecutive years of Chairman's Club Production and 12 years of Sales Management and Branch Administration. Bob was voted Banc of America Investment Services Sales Manager of the Year in 2000.

Question: "I work at a full-service brokerage firm owned by a bank and we are competitors when we come across prospects or existing clients. On paper we are to work together, and we are positioned better to work with HNW families. I have sent referrals their way. How can I position myself to be on the receiving end?"

Bob Cobb's answer: Great question.  You are already sending some referrals their way, so you are already letting them know that it will not be a one-way street (this is one of their biggest complaints), but just as when you are attempting to work with CPAs and attorneys, that is not enough.

Here is a 5-step process that will have a dramatic impact on your referrals received:

1. View the world through their eyes.  Bankers often see only risk when they refer to you.  They have the relationship with the client (and they often have only 30-40 active at a time). If they don't know you, they often assume that referring business to you could be risky.  (This is the result of previous relationships that seemed like they were off to a good start, but were not). 

   Broadcast a bit on their favorite radio station WIIFM (What's In It For Me).  When you talk to them, be better able to answer the question "What will you do to make my relationships with my clients better?"  (Hint: Investment Management, Trust and 401K plan business all make their relationships with their clients much stickier, and give them a great reason to reconnect with clients that don't have a banking need today).

2. Develop a Joint Value Proposition. When you start working well together, clients will love that fact that you have experts on both sides of the balance sheet. 

   How can you position yourself as a team that will have the prospective client concluding you are different (read better) than the competition?

3. Walk the walk.  You say that you are referring people to them today. When you do that, are you positioning the banker powerfully in the mind of the client?  Does the client conclude that they definitely should meet with the banker? 

   Have you elicited the banker's ideal client and their value proposition so that you are making a powerful hand-off to the banker (and not sending them the equivalent of a 529 plan that starts with $500 and adds $50 per month)? The training that you have received dwarfs what they have been exposed to—so lead by example, be their sales coach, walk the walk!

4. Go on joint calls.  They have new business goals and in most cases are not comfortable making new calls.  Picking out some "joint prospects" is a great way for you to coach them on some new call strategies and demystify your process. 

   When they have seen you in action two or three times, and see that you have a client-centered process, much of the risk and resistance melts away.

5. Go above and beyond!  When you do get a referral, keep them in the loop.  Call them with updates as to exactly where you stand.  If you have left three messages and the prospect hasn't called back—or if you are playing phone tag—let the banker know.  In a new referral relationship, not knowing equals fear and uncertainty.  Think the Weather Channel and CNN: constant updates! 

   When you open the account, service the daylights out of them.  Nothing builds your credibility and trust as quickly as a newly referred client calling the banker back and saying, "Oh my goodness, John, I have been an investor for 20 years and I have never seen anything like that advisor you referred me to at Galaxy Financial!" A couple of newly referred clients that give you that feedback and you will be well on your way to the relationship of your dreams.

The bankers might be intimidated by you (like being paired with Tiger in a Pro-Am Golf Tournament) or might have a Hollywood impression (Wall Street and Boiler Room) of what advisors are like.  These five steps will reframe the way they look at you and help them to see you as an incredibly valuable asset in helping them reach their business goals.

Hope this helps!

Best wishes,
Bob

Got questions or thoughts about today's challenge or Bob's response? Post a comment.

What to Do About Sub-Par Referrals?

Welcome to Day 10 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question comes from Edward K., a regional advisor from Atlanta. Thanks, Edward!

Top advisor Gregory D. Gardner, CFP will tackle Edward's question. Greg is president of Dallas-based The Gardner Group, a comprehensive wealth management firm specializing in high net worth investors. Gardner is also actively involved with his alma mater, Southern Methodist University, where he played football. He is the chairman of Planned Giving for SMU Athletics, and also serves on the university's Planned Giving Board.

Question: "I've always tried to paint a vivid picture when I tell my clients what kind of new clients I'm seeking. I'll even say a minimum asset size of $200,000. I still continue to get some referrals with accounts under $100k. How do I decline to work with these folks without creating ill will with the referring clients?"

Greg Gardner's answer: I went through a phase of being referred "downward" by some of my better clients. We were getting a lot of referrals, but they were introducing me to their debt-ridden children and administrative assistants. We were doing a lot of charity work, explaining how to get out of credit card debt, etc.

After re-reading Nick Murray's The New Financial Advisor, I remembered why it was so important to stick to my firm minimum. For every client I brought on under $400,000… the next one would have to be that much larger. That made me reiterate my value proposition with my very best clients. For every minute I'm dealing with someone with $50,000... I'm not dealing with you.

I have taken on several steps to help improve this situation. I've done a better job lately letting clients know who we're going to work with and who we're not. We reworked our brand image to make them understand they were referring people not just to me, but to a process and a company. I explain to them how many families I believe we can manage. 250 relationships is our magic number. I tell them not to worry, we still have room to grow. It puts them at ease. They don't want to be passed on to paraplanner for their investment questions.

Unfortunately, the downward referral still happens from time to time. One client referred me to one of his employees, a guy making $75,000 who had $35,000 in assets. Taking on that person didn't make sense. I still talked to the referral on phone for an hour.  I gave him some free advice, but I didn't take him on. I told my client I work with people like him, who have $1 million in net worth and $500,000 in investable assets.

That being said, you gotta take the children of your clients--regardless of account size.  I always meet with relatives of clients. From there, I usually spend 3-5 hours educating them on why they should NOT work with me until they are out of debt, investing faithfully in their 401(k), and some financial basics are established. This eliminates the operational headaches that smaller clients often bring us.

Next, I have brought on a junior wealth advisor to help with these smaller clients, if and when it makes sense. We also employ technology. Lower-tiered clients who come in via referral often report surprise at the high level of contact we provide--weekly e-mail market updates, a monthly electronic newsletter, and an annual face-to-face review. Based on their experiences at other firms, they didn't think we'd have time for them. Even clients with $10,000 invested with me are getting contacted by us frequently. They can opt out if they want to, but with technology, we can deliver that level of service at no additional cost or time commitment.

So, I have the technology and systems in place to handle the smaller accounts. However, just like you, I only have 168 hours in the week.

Got questions or thoughts about today's challenge or Greg's response? Post a comment.

Competing with Other FAs for CPA Referrals--How to Be First Among Equals

Welcome to Day 9 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Leslie B., an RIA from Houston, Texas. Way to go, Leslie!

Daryl Logullo, founder of Strategic Impact, will be answering Leslie's question. Daryl helps advisors attract more clients using direct response, strategic alliances, and client referral strategies.

Question: "I have a CPA who is willing to refer her clients to me. She would give them my business card and suggest that they call me. I think she's at least talking me up a little bit. The other day she said that she gave a client who had just inherited some money my name. Of course the client hasn't called, but the client called the other advisor she also referred to. The CPA says to me, "I'm really sorry my client hasn't called, but it looks like she's going with the other advisor. I told the client that she should really talk to two advisors, since she just inherited over one million dollars and has never dealt with money before."

I just wanted to scream!!!! If I had known that this was a million-dollar client, I would have offered to take the two of them to lunch or something. How do I get the CPA to let me call on the referral?"

Daryl Logullo's answer: Make sure whenever ANYONE mentions they gave your name or card to someone, you enlist their help in the follow-up process. Common cutesies and courtesies aside, handing out your name to people can do you more harm than good. So no cold handoffs, okay? Leave those for January NFL football games—not the "game" of referrals.

Here's how to handle this next time.

You first need to understand that there are certain trigger events that may cause a CPA to think of you. The key to this is making sure you focus on the process that would cause the CPA to think of you and, as you put it, "hand out your information." The name of the game is not the CPA "talking you up." It's about their having a raging desire to tell the client they need to do everything possible to meet with you. This is only accomplished by the CPA becoming a referral advocate on your behalf, so when they hear their client has a problem, they do all that is possible to literally insist the client meet with you.

Which begs the question: How do you transform a CPA from "safe-shaker" into assailing advocate?
One of the easiest ways is by a strategy that involves "T-F", or increasing your Talk Factor. People, including CPAs, are most apt to talk about events, activities and experiences that were memorable to them. But the problem here is that you haven't created such memorable events for the CPA.

No sweat.

Think right now about what can you do to perform an activity for a CPA—or group of CPA locally, in your city or town—in a way that they will always remember you. This entirely depends on your line of business, of course. For example, if you're in a small, rural town in Western Montana, you might not have a lot of options that involve coordination of events or activities, as you would, say, where I'm at, here in the seaside town of Vero Beach, Florida.

Nonetheless, some examples I have seen include serving as volunteer chair on a local CPA society's golf tournament, hosting an art tour together with charitable tax strategies advice at your local art museum, inviting a CPA to become a contributing columnist to your monthly newsletter, even co-sponsoring your own "Jane Doe's Money For Kids 101," in your local schools.

Can you see how these events could create T-F about you?

Now, I want to address this issue of a person, or in this case, a CPA, blindly handing out your name, business card, or whatever it was. Next time a CPA mentions any semblance of "talking you up" to others, you need to react by saying, "That's fantastic! That's great. Thanks for thinking of me. Tell me: What's your relationship like with this person?"

Assuming the CPA says it's good, ask him/her if he/she's willing to participate and perhaps even arrange a three-way meeting. If the CPA is willing to get involved, this signals a greater commitment to making the meeting happen. It's also a better introduction.

All of this supposes, of course, that you ingrain into the CPAs mind the need for them to contact you and keep you up-to-date on sources of new business for you. People don't always do this, which is why it's appropriate for you to make the rounds at least monthly.

Creating memorable events each month can do this for you, and boost your T-F.

Got questions or thoughts about today's challenge or Daryl's response? Post a comment.

My Clients Won't Set Up Direct Communication With Referrals

Welcome to Day 8 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by D. Jones, an independent advisor from Golden, Colorado. Congratulations!

D's question will be answered by Michael Brizz, creator of the Referral Mastery System. Since 1988, his Center for Professional Achievement has been helping financial advisors elevate their business to operate "by referral only."

Question: "I frequently have clients who seem to want to refer to me but will only ask for marketing materials rather than setting up more direct communication. While marketing materials are good, I feel there is no substitute to direct communication. What do you recommend?"

Michael Brizz's answer: You are right to want direct communication. Without direct communication, the odds of securing an appointment fall significantly. 

Your setup is very important.  In the Referral Mastery process, we make sure the following is in place before we discuss the actual introduction method—make sure the client:

1. can articulate your value
2. knows precisely to whom you want to be referred, and
3. understands why it is beneficial for the referral to meet you.

If you have done these steps, your client will want to make sure you and the referral connect.   

When you have completed the steps above, the next step is to develop a method of introduction that is comfortable for the client and workable for you.  It is important to have an open discussion about this and that you are open to different forms of introductions.  Pay attention to the shared interests of the client and the referral. 

Here are some examples.  We have a client this week that is going on a fishing trip to Costa Rica with a client, and one purpose of the trip is to arrange a power introduction between the advisor and a wealthy investor.  Another advisor client of ours just got back from a golfing trip to Hilton Head with a client and a group of referrals. 

This is much different from just having a name and a number or having a client give someone your marketing piece. Strive for quality personal introductions. 

You need to balance quality of connection with practical limitations.  Just because the client suggests you come along on an ice fishing trip to Alaska in January doesn't mean you have to go.  However, you very well might go if the quality of referral is high enough.  There will be plenty of time to develop rapport as you sit around that hole in the ice waiting for something to bite. 

The introduction does not have to be exotic.  Just yesterday, I suggested to my advisor that he come to my house for a picnic so he can meet a wealthy friend of mine.  I will make a point of briefing the advisor and setting up the conversation so the two of them will talk about investments.  They will have a warm and comfortable conversation over brats and beer on my deck.  They will have time to establish rapport and I will bet that my friend's curiosity about investments will push the conversation until they talk about specific investments and about Ed's technical methods of managing money.   

The higher the quality of referral you want, the more attention you want to pay to the method of introduction. Where at all possible, you want a personal introduction.  Agree on a method where there is time to have a conversation so the referral will feel comfortable with the next step - agreeing to the next conversation.

The meeting does not have to involve a week in Costa Rica.  It might be a cup of coffee at Starbucks.   It could be a 3-way conference call.  You want to make the connection happen in a way that is comfortable for both the client and the referral.  Pay attention to the shared interests and more direct communication will happen. 

Got questions or thoughts about today's challenge or Michael's response? Post a comment.

Getting Clients Comfortable Discussing Referrals With Friends

Welcome to Day 7 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Bill C., an independent in Roswell, Georgia. Well done, Bill!

Bill's question will be answered by Chris Holman, a 20-year industry veteran and the president of Affinity Networking Systems, Inc. His sales prospecting nuggets and client acquisition strategies can be found on the Prospecting Professor. Chris is based in Minneapolis, Minnesota.

Question: "Most of my clients are more than happy to provide referrals, but it's obviously not on the top of their mind when they are amongst friends or colleagues, so they rarely bring up the topic. Or they don't know how to bring up the subject without getting personal. Do you have specific recommendations, dialogue suggestions, etc. to help my clients feel comfortable addressing the issue amongst friends and thus being able to effectively refer business to me?"

Chris Holman's answer: In the referral-dynamic between Advisor and Client, there are 6 sticky points that seem to continue crop up.

• Downside vs. Upside. From the client's perspective, what is their upside to referring their best friend, their mother, or a business colleague, to you? A thank you card? A free dinner? An 'attaboy?' In comparison, what's the downside? From the client's perspective, the downside and the worst case scenario of providing a referral—is that the referral doesn't go well, and the client loses a valuable friendship. If nothing else, the advisor should recognize and acknowledge that the client's downside outweighs the upside, when it comes to providing referrals. This acknowledgement lets the client know that you are empathetic to their concerns.


• Introductions vs. Referrals. In some cases, the term 'referrals' causes the client to freeze up, whereas 'an introduction' is much more benign-sounding. If this is the case, even though it is a semantic difference, so be it. You might find it helpful to remind your clients that you are only asking for an introduction anyway, not a lifetime commitment.


• Loose Lips Sink Friendships. It goes without saying, but I'll say it anyway. Are you completely discreet when it comes to your professional relationships? More importantly, are your clients aware that, should they provide a referral, you will guard client privacy (theirs and everyone else's) at all costs?


• Follow-Up and Thank You. Surveys have shown that one of the single biggest reasons that clients stop providing referrals is the lack of follow-though and thanks. After receiving a referral, be sure to thank your client appropriately, and inform them that you have followed through with your contact to the person who was referred to you.


• Be Specific. In some cases, it helps to remind your client as to what you will do, in specific steps, with the person who is referred to you. Some clients may have the mistaken impression that, when provided a referral, you will 'hound' this person with calls and letters—until they surrender. Outline the specific and professional steps that you take with all prospects that you are introduced to you—and this concern evaporates.


• A Touch of Class. Thank You Notes are a start, yet you might think of something even better. One advisor who I know sends out a gift certificate to the client's favorite restaurant—for BOTH the client and his 'significant other.' Another advisor learns the client's favorite charity, and makes a donation to that charity in the client's name. Either way, a creative 'thank you' is very effective.

Got questions or thoughts about today's challenge or Chris's response? Post a comment.

Asking Centers of Influence for Referrals Without Appearing "Aggressive"

Welcome to Day 6 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Gregory F., an advisor with a regional firm in Virginia Beach, Virginia. Congratulations!

Gregory's question will be answered by Bryce Sanders, a 20-year industry veteran, author of Captivating the Wealthy Investor, and president of Perceptive Business Solutions, a firm that trains advisors on how to identify, meet, and cultivate high-net-worth individuals.

Question: "I am a member of three Boards of Directors for non-profit organizations and have come to know many community business leaders and HNW individuals through these organizations. How do I approach these individuals to ask for referrals without appearing too aggressive or money-grubbing?"

Bryce Sanders' answer:

Let's start with a few assumptions.

1. They are prequalifed—you would like to have them as clients themselves
2. They would be a good source of referrals 
3. They know what you do and where you work yet have never approached you
4. The perceived "risk to friendship" is the barrier.

Strategy One:

Convert the barrier into the opportunity for the approach:

"Sean, we've known each other for a long time. I've never approached you for business because I value our friendship.  I wouldn't want to put our friendship at risk.

Besides, you probably work with someone already who takes great care of you. Most successful people do.

It's been a difficult 5 years in the market. You may know some people who haven't been as lucky as you. It would be worthwhile to spend a few minutes talking about what I do, so when you encounter some of those people you will know how I may be able to help them."

Rationale:

• You have 'led' with the unspoken 'risk to friendship'.  It shows you value their friendship highly.
• You have made a few assumptions:  They work with someone, they get great service because they are an important client to their adviser.  At this point they may respond - "I don't get attention and great service"  The door is open.
• You are offering to help people they know who haven't been getting attention and great service like them.  It becomes your rationale for launching into a brief overview of what you do.
• You do different things for different people.  You can tailor what you do to their needs (business owner, fixed income retiree, etc.) to make the connection you help people like them.
• You have explain what you do in the context of their needs without making them feel uncomfortable.

Strategy Two:

Don't approach them as a friend.  Don't approach them as an individual prospect.  Approach them as you would an investment professional who runs an endowment or scholarship fund.  In that approach, two of the many questions you would ask are:

1. When do you review the performance of the money managers you use within the endowment?
2. Are you open to presentations from outside money managers at that time?

"Sean, you've explained you use professional money management for your personal investments at ABC Securities.

We offer professional money management at my firm.  We are competitively priced.  We have good performance figures.

When do you review the performance of the money managers you use at ABC Securities? I'm interested in winning some of the business. Are you open to presentations from outside money managers at that time?"

Rationale:

• You are approaching them as a professional although they are a friend or acquaintance
• You recognize they use professional money management with a competitor
• You asked when they get their periodic review from their adviser (This may reveal they don't get them)
• You have asked to "be in front of them" when they are considering making changes.  Tom Stanley has advocated good timing for years.  When their adviser reviews a portfolio with multiple money managers, what do they do?  They recommend rebalancing and reallocation. The friend is in the mindframe to make changes. Perhaps they accept the sell recommendations and move those funds to you. Now you have the initial funds to establish a new relationship.

Got questions or thoughts about today's challenge or Bryce's response? Post a comment.

Asking Top Clients for Referrals—How Not to Appear Desperate

Welcome to Day 5 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Lynette B., who's with a wirehouse in Dublin, OH.  Congrats, Lynette!

Lynette's question will be answered by Dan Finley, President of Advisor Solutions, Inc. a business development consulting and coaching service for financial advisors.  Dan was a successful financial advisor for thirteen years before founding Advisor Solutions, Inc. 

Question: "I have done such a good job of packaging myself as an advisor to the elite that I have trouble now asking the chosen I work with for referrals without sounding like I am not who I purport to be. How does one elicit their help and ask them to help add onto my practice without looking as if I am needy or not as successful as I portray?"

Dan Finley's answer: Asking your elite clients for referrals when done properly can create a very powerful, positive image.  But setting the stage for a very successful referral campaign with your elite clientele needs a well thought out plan complete with the type of content that elite clients can relate to.

First, you have already successfully completed the very first step, which is to convey the message that you are an advisor to the elite. You are not willing to work with just anyone. Your niche is to help the elite with their complex financial challenges.

Second, you need to take the message to the next level by explaining to them that you are not growing your business in the traditional sense; meaning by adding just anyone—even people who may be considered elite clientele—because you only have so much time in the day to devote to your current client base, who are people that you like.

Third, you need to convey the message that you always have time to help your clients' friends, family and colleagues. In fact, you prefer to work with people who have a relationship with your clients.

Fourth, you need to structure the message that giving you referrals is not about helping you get another client, but rather about helping your clients help someone else.

Fifth, you need to dig deep inside and have a genuine belief system that your mission is to help your clients help others. This may or may not produce financial results for you in the short run, but it will definitely produce incredible monetary and non-monetary results in the long run.

In the right dialogue, this conveys a very powerful message that you are not needy at all, but rather very successful and again are only willing to help those whom your clients want to help.

Let me illustrate a very brief dialogue:

Client: How's business?

Advisor: Great! In fact, I've been so busy that I have decided not to take any additional clients unless they are friends, family or colleagues of my clients, people that my clients want to help.

Client: What do you mean by, “want to help”?

Advisor: Well, how have I helped you the most since we have started working together?

Client: You have helped me reduce my taxes, consolidate my investments, and make sure my estate planning is in order.

Advisor: Who do you believe needs your help the most by getting that level of service?

This is a brief dialogue that powerfully expresses the messages that you have a successful business, you are busy, you have brought value to your client and you want to help those whom your client wants to help. There is nothing needy or desperate about it.

Since you have already positioned yourself as the advisor to the elite, your clients will refer you to someone whom they want to help that will naturally fit your elite clientele. Remember, most affluent investors feel most comfortable speaking with a financial advisor to whom they have been referred.

Got questions or thoughts about today's challenge or Dan's response? Post a comment.

My Networking Group Isn't Producing Referrals--What's Wrong?

Welcome to Day 4 of our Referral Clinic and Blog-a-thon!  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Victor M., an independent advisor in Brentwood, Missouri. Well done, Victor!

Networking expert Bob Burg is going to take on Victor's question.  Bob is a frequent speaker at financial services conferences and is the author of Endless Referrals: Network Your Everyday Contacts Into Sales.

Question: "I've been involved in a BNI group for nearly three years and have not been getting referrals. I've tried presenting myself as an asset manager for larger 401k rollovers, as someone who can help people just starting out, or someone who can open an IRA in a flash at tax time. Nothing seems to work. My fellow members are not sophisticated and are from every profession. Should I throw in the towel rather than renew my membership?"

Bob Burg's answer:  Referral-exchange groups such as BNI (Business Network International) are a goldmine when worked correctly, so let's look at a few things you might do in order to dramatically increase your odds for success within this organization.

While the following thoughts will encompass more than just your question (and some of these you might already be doing correctly) it's taking it all into consideration holistically that puts the odds in your favor.

The first mistake many advisors make in a group such as this is having unrealistic expectations. While the printer in the group can expect immediate business and referrals, the Financial Advisor cannot expect that. Not that it cannot or never has happened, but the odds are certainly not in your favor, and for obvious reasons.

So, know that it will take some time within these types of groups to develop the "know you, like you, trust you" relationships that will elicit the referral business (and direct business) you desire.

To do this, do what you would always do when cultivating networking relationships: add value to their lives. How? By referring business to them, providing them with information (not financial) that can help them, providing them with information (yes, financial, but not intended to directly sell your services) that can help them, and more.

Next, make sure that the message you give every week during your one-minute stand-up introduction is succinct, to the point, and benefits-oriented. Depending upon how you approach your business, make your benefit statement either very general ("I provide a system for people to create and manage wealth") or specific (I work with families who'd like to easily finance their child's education.")

Then, provide what I call a "How to Know" statement. What this does is to help your fellow group members to identify your prospect.

Note: Any technical information you provide here will be detrimental to your goal. They don't need to know or hear any technical terms—they don't understand them, and they don't WANT to understand them. :-)

An example of a good "How to Know" statement that a person who sells copying machines might give is: "If you're in an office and notice a copying machine with a wastepaper basket next to it filled the rim and overflowing with crumpled up pieces of paper, that's a good sign that copying machine has been breaking down a lot lately and that's typically a good prospect for me."

Notice that there was no talk about the copying machine itself, the "bells and whistles" or anything else? It just showed how to identify a potential prospect.

That's what you want to do with your "How to Know" statement. You are simply teaching your fellow members—your potential referral sources—how to be on the lookout for good prospects.

Next, once you've established a relationship with a fellow group member and you are certain that he or she knows you, likes you and trusts you, you can invite that person to coffee for the express purpose of obtaining referrals from them.

Remember, your referral exchange organization is simply one more profit funnel for you, and the relationships with its individual group members need to be developed and cultivated just like any other relationships.

I hope this helps. Good luck.

Got questions or thoughts about today's challenge or Bob's response? Post a comment.

When Is Great Client Service "Great" Enough to Ask for Referrals?

Welcome to Day 3 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Andrea E., an insurance rep in Utica, New York. Congratulations, Andrea!

Andrea's question will be answered by Katherine Vessenes, JD, CFP®, RFC. Katherine is president of Vestment Advisors and the country's leading authority on building the multimillion-dollar practice.

Question: "Everything I've read regarding harvesting referrals seems to hammer home the same message:  In order to obtain referrals, you must earn the right to ask for them by providing outstanding service.  How do you know when you've provided enough outstanding service?"

Katherine Vessenes' answer: The basis starting point of any referral program has to be building what we call absolute advocates—those raving fans who love you so much they can't help but send you their friends and family.

So rule number one: build a loyal base of advocates by providing great client service and the WOW experience. This has to be a level of service beyond what they can get elsewhere.

Rule number two: The time to ask for referrals is at the point of highest client satisfaction. I learned this hard way practicing law. The most likely point in time for me to get paid was when the client was the happiest with our outcome—when we delivered the estate plan or won the case. Getting paid then was easy—if I waited too long to send out the bill, the chances of getting paid actually decreased day by day.

The same rationale is true of our clients and getting paid through referrals. The time to ask is after you have demonstrated great value and proven yourself. Never ask before you have delivered a plan or something of value to the client.

Rule number three: pick your times carefully.  Here is one example: After delivering a financial plan is a great time to ask for referrals. The script would go like this:

"Jane, now that you have seen our plan and recommendations, how are you feeling about our work so far?" This question is crucial, because no one is going to give you good referrals if they are not happy with your service.  Frankly, we never know for sure if we are meeting clients' expectations unless we ask them.

Then ask this:

"Is there anything we can do to make this experience better for you?"

Once again this is great feedback to learn if your WOW level of service is working.  Assuming you don't get any negative response, you go to the next question:

"Great, I am so glad to hear that. That is what we were hoping for. Now I could use a little advice about my business, if you don't mind. I have enjoyed working with you so much, I have been thinking about focusing my practice on (pick a point of contact with them, like "other pilots like you" or "other members of the West Valley Country Club"). Does this make sense?"

See what they say to you. They might say some other financial advisor is already working with all the local pilots. Chances are they are going to think this is a good idea.

Then you ask: "If you were me, how would you go about it?" What you are asking for here is your marketing strategy.  Most people will give you a lot of good ideas, because they want to help.

Then you ask: "If you were me, who should I approach first?" This is where you get the names and other information.

Then: "How do you think I should approach them?" Most of your clients will be willing to call, send a letter or email. If not you may have to prompt them.

If your clients are not willing to recommend their friends come into the office for an initial meeting with you, let off a little of the pressure and ask if it would be a good idea to invite them to a seminar you were planning for pilots.  Most people would be happy to do that because it is non- threatening. Make sure you invite your client to come to the seminar and be your MC—this adds creditability to the entire program.

Other good times to ask for referrals:

2. After doing your annual client satisfaction survey. Once again, it lets you know if they are wildly happy with your service. If they are, ask them for recommendations on others who could use what you are offering.

3. After a client appreciation event. Call the clients, ask if they enjoyed the event and then go into the same questions listed above.

4. The annual client review. A good way to approach this is to confirm once again that they are happy with your service.  Then say "I want you to know, I will always make time for your friends and family who need the kind of services we provide. Can you think of any one who could benefit from our (describe your system here)—I would like to invite them to our next workshop."

5. Unsolicited praise. Sometimes clients like what you are doing do much, they start telling you how pleased they are with your services. This can be a great time to thank them and ask for recommendations.

Final thoughts: just start asking. The more you ask, the more comfortable you will feel and the more likely you will get new recommendations.  You won't get referrals from everyone, but even if you can get 1 in 3, this could improve your revenue by 30% or even more. Remember the best time to ask is when the client is the happiest with your service.

Got questions or thoughts about today's challenge or Katherine's response? Post a comment.