The ABCs of Automatic Referrals: I is for Introduction

f you've been reading this blog for any length of time, you've probably noticed that we stress asking for introductions over asking for referrals. Why is that?

Well, in the best of all possible worlds, you would get a personal introduction to every new prospect with whom you want to do business. An introduction is nearly always better than a referral, for a number of reasons.

• A face-to-face introduction boosts your credibility. Even though your client may never directly endorse you, the prospect will infer such an endorsement. That implied endorsement is tremendously important, especially when you're dealing with high-net-worth prospects—because the research says that these prospects want to establish their financial advisory relationships through referral or introduction. When your client actually introduces you to their friend or family member, the trust the friend or family member feels for the client automatically extends to you to some degree. We call this "the credibility glow."Sometimes clients will go the extra mile and endorse you.They might mention what a great job you've done for them, or tell the prospect they would be crazy not to meet with you. It doesn't get any better than that!
• An introduction often makes clients more comfortable because it lets them keep some control over the relationship. Some clients are nervous about handing over a name and number because they don't know if the person they're referring is interested in hearing from you. They also don't know what you are going to say or do once the information is in your hands. What if you're pushy or embarrass them? With an introduction, they get to mediate and ensure that the meeting happens on THEIR terms. Introductions in social settings can also feel less pressured and more casual.
• Introductions give YOU more control. They allow you to be more proactive about scheduling a meeting and making it happen. Isn't it better to be scheduled for brunch on Sunday or golf on Friday afternoon, rather than waiting for the client to call with a name and phone number, or trying to chase down a referral?
• Face-to-face introductions let you do the Malcolm Gladwell "Blink" thing.  This is especially true in a social context. You can look the prospect in the eye, shake his or her hand, and get a feel for whether or not this person is someone with whom you want to work—BEFORE you try to solicit the business. This can save everyone embarrassment and trouble down the road.

So next time you're preparing to ask for a referral, think "introduction" instead. And let us know about the results you get. We love to hear from you.