The No-Pressure Referral Request

People get pitched products and services all the time in modern society, and this can cause them to have their guard up against and ultimately be repelled by anything that even resembles a "sales situation," even when it comes to your good clients and referrals. Asking something like, "Do you know anyone who could benefit from my services?" can be off-putting to some, and they may not want to mention friends and family because they're afraid you're going to "sell" them.

To avoid your referral requests sounding like a sales situation, consider using what recent Advisor Radio (free registration required) guest Judith Cane calls a no-pressure request.  Judith, an advisor in Ottawa, Ontario who specializes in working with women, starts by asking her clients if they ever talk about finances with other members of the clubs or organizations they belong to (you'll want to know ahead of time what clubs/organizations they are members of so you can pose the question specifically).

If they say yes, she asks, "Could you pass my name on if they're interested?"

If they say no, she tells her client that they can invite any of her fellow-members to a wine and cheese tasting that she hosts regularly, where they can learn more about investing, the cause of all the trouble in the stock market, and other topics of financial concern.

At the event itself, Judith concentrates solely on providing her guests with quality information of benefit to them and she invites them to sign-up for her e-mail newsletter if they like. She does not pressure anyone and does not aggressively follow up.

While this kind of no-pressure referral process may not bring the immediate business of a more aggressive approach, in the long-term, it works. Judith mentioned that she has been contacted by people who attended one of her events over a year ago who, while they weren't interested then, are now nearing retirement and could use some good advice.

Consider introducing elements of this kind of no-pressure approach into your own referrals system to avoid the sales stigma. And head over to the Advisor Radio (free registration required) to hear Judith describe her strategy in even more depth.

5 Ways to Showcase your Integrity and Win Referrals

With all the financial fraud that has been exposed in the past year, and with many investors having lost so much money in their portfolios, people want to know that the advisor they are working with is trustworthy—that you are looking out for their interests and wellbeing first and foremost. Likewise, they're certainly not going to refer you in this environment unless they are absolutely able to see and experience your credibility. Longtime clients know they can count on you, but with new clients and if you're a rookie advisor, you need to think about protecting and projecting integrity and credibility, now more than ever.

Bill Cates of Referral Coach International has some helpful reminders on maintaining integrity with clients so that you can keep their business and increase the likeliness that they will recommend you to those they know:

1. Be careful what you say you will do. Be thoughtful with how you give your word. Take an extra moment to look at your schedule or think through the situation. My clients have become accustomed to me making careful decisions. And since I follow through on my word, they appreciate my thoughtfulness. If you say you will have information to a client by 4 p.m. on Monday, get it there.

2. Be proactive when there's a hitch. If there is a good reason why you can't, don't wait for the client to call you. Call him as soon as you know you won't be on time. Keeping promises is essential to maintaining your integrity and building trust-and earning referrals. I guarantee that if the commitment time passes and you don't call, he will remember it. He'll withhold his trust until you prove yourself.

3. Do better than you promise. When you think through the commitments you make to your clients, you'll often have the opportunity to promise a deadline knowing you just might be able to deliver sooner. Give yourself a "save" delivery time, and then come through.

4. Tell the truth. Never lie to a client. Keeping track of the truth is hard enough. With that said, when to tell the truth in certain circumstances is something of an art form. Situations may come up in which the client does not need to know every detail all at once. When all is said and done, though, you should never misrepresent anything to your clients. Always tell them the truth.

5. Clarify—don't assume! When clients give you "fuzzy phrases," don't assume that you're both on the same page about whatever the issue is. Clarify! For instance, if clients say they need something done "as soon as possible," stop and find out exactly what that means to them. When your internal clients (staff or home office personnel) say, "I'll try to get that done," press them to make a clear time-frame commitment. Let them know that in order to keep your word to your clients, you must be able to rely on the word of people who support your team.

See Bill's entire article for more on the topic of integrity (free registration required).