The response to our recent Blog-a-thon and Referral Clinic was overwhelming. We received hundreds of great questions from advisors, most of which we weren't able to answer during the formal event. So, we figured, why not keep on going?
Today's question comes from Mark, a wirehouse advisor on Cape Cod, in Massachussets, and will be fielded by Bob Cobb, the President and CEO of Ultimate Financial Advisor, a sales training and coaching company dedicated to helping advisors build the practice of their dreams.
Question: "My biggest challenge is that I'm new in the business. One year. Although I am confident in my abilities, when I ask for referrals I constantly run into the road block of people not willing to refer me due to not having enough of a track record. I think they might feel that they may be risking their own reputation."
Bob writes: Mark, I don't know you, obviously, although your market does. If they are telling you that you don't have enough of a track record, that must be something that you are projecting in some way or another.
The Titans at your firm are not selling "track record" and they are not getting that objection. Since you can't predict, forecast, or guarantee what results will be, they would not be part of my conversation with prospects or clients. The best advisors who receive the most referrals convey a sense that they are knowledgeable and will help clients reach their specific goals, dreams, and aspirations. When you are conveying that, track records and length of service are less of a concern to your prospects.
Editor's note: In addition to taking Bob's advice and looking at what you're projecting, Mark, it might make sense to try a little show and tell. I assume that the people you're asking for referrals are not clients, because if they were, they would presumably have enough faith in you to refer you (unless you're not meeting their expectations, in which case you've got more than just a perception problem).
If it's other sources you're asking, have you sat down with them, discussed your business and your experience, and even offered to do some work for them gratis to demonstrate your abilities and approach? That approach worked for Georgia French of Scott & Stringfellow when she was trying to generate more referrals from employees of the bank that owns her firm. She actually invited them to accompany her on appointments and did sample financial plans for them so they could see her work. Other advisors show their stuff by evaluating potential referral sources' 401(k)s. You can read more about these approaches in 12 Steps to a New Kind of Referral Business (free registration required).
Do you have a referral or business-development challenge that's got you stuck? Send it to us and we'll do our best to help.
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