I just came across a great little tidbit from the Dallas Morning News (it was published in September, but other papers have been picking the article up since then).
McCord and Associates, a consulting firm in Houston, conducted a referral survey that confirmed what we found in our advisor survey a couple of years ago: "Referral generation is the cheapest way to prospect for clients and the most effective way," McCord said. "And more than 85 percent of salespeople are atrocious at it. "
McCord also teaches that getting referrals is much more than collecting names and phone numbers. "For me, a referral is an introduction, either a letter, a phone call or lunch," he said. "It's an introduction to someone who has the need for whatever the product or service is and the means to acquire it." Unfortunately, McCord observes, "too few people take the time to develop the habits to forge these strong relationships."
This concept—that you should be seeking introductions, not names and numbers—is at the heart of the Automatic Referrals process. Getting introductions requires a much more sophisticated methodology than most advisors employ—but when you learn that methodology, the process is much easier, much less painful, and much more rewarding than most advisors think.
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