The referral opportunity - what you risk when you don't ask

Marketing expert and Horsesmouth contributor Robert Middleton had a characteristically wonderful post on his blog last week, the last in his series of 10 dumb marketing mistakes. "I've left the dumbest for last," he writes: "'Not Risking.'"

Robert recommends making a list of things you're not doing but would likely profit from if you got around to doing them.

Then, he writes, "Subject each item on your list to the following questions:

1. Is this something that would truly benefit me if I learned it or put it into action?

2. What are some of the possible benefits I might gain if I learned or did this thing?

3. What could I potentially loose if I didn't learn this thing or do this thing?

4. What's the worst that could happen if I took a risk and learned this thing or did this thing?

When you ask these four questions of every item on your list, you'll have reframed your risk. What used to look risky might not look so risky anymore. In fact, it might actually start looking like a great idea to learn or do this thing."

As Yogi Berra said, when it comes to marketing, "90% of this game is half mental."  The point of Robert's piece is that we often give up more potential opportunity by failing to take risks than we save ourselves. 

As an advisor, you're probably quite familiar with this idea.  You most likely have at least a few clients who used to keep most of their cash under a mattress, until you talked them out of it, because they were too scared of losing it by investing.  What they failed to comprehend was that NOT investing actually represents a greater risk over time (given a long enough time horizon, of course) than investing is.

You probably have other clients who weren't necessarily afraid to invest—they just couldn't seem to get organized enough to get their financial acts together.  Again, a lost opportunity that carries significant risk.

The same is true of referrals.  If you're not asking because you're too afraid of looking bad or offending clients—or because you just haven't taken the time to get around to creating a systematic referral process that works for you—you're taking a lot more risk than you may realize.

The truth is, the risk of asking for referrals is actually almost negligible when you do it correctly and systematically.  So don't let misplaced fear or disorganization cheat you of great opportunity.  Start getting your referral act together today!