How many times have you asked for referrals and heard the reply, "I’m sorry, I can’t think of anyone off the top of my head?" I bet it’s a lot.
Advisors tend to assume that the reason for dismal results like these is that their referral sources are reluctant to provide names. While this may occasionally be true, the "I don’t know anyone" response is much more often the result of asking referral sources to work too hard.
Our brains are essentially databases that we scan when we need to retrieve information. When you ask a client for a referral, she has to scan her entire "database" of acquaintances (which numbers in the hundreds, at least) and then narrow down the possibilities to come up with one or two names, all in a matter of minutes. Chances are she’s going to draw a blank.
That's why, when you ask for a referral, you have to give clients some simple and specific details to help them define and target their "search."
Let’s say one of your fellow members of the Chamber of Commerce, Mr. Jones, owns a busy café on your town’s main drag and is an active member of the state restaurant association. And restaurant equipment suppliers just happen to be one of your target markets. If you ask Mr. Jones the generic question, "Can you think of anyone else who could benefit from my services?" it probably won't even occur to him to look in the "suppliers" section of his mental database. But how about if you get very specific? What if you were to say, "I have a number of clients who own equipment supply firms, and I've done a lot of work helping them with setting up 401(k)s for their companies and preparing to sell their businesses (free registration required) when they're ready to retire. Do you think you could introduce me to some of the suppliers you deal with, so I can find out if they might need that type of help?"
Mr. Jones now knows precisely which mental file cabinet to open. And that file drawer just may contain some stellar referrals for you.
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