How to Get Divorce Attorneys to Refer

Welcome to Day 13 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question comes from Joel H., an independent advisor from Chicago, Illinois.  Congrats, Joel!

Ginita Wall will be responding to Joel's question. A CPA, CFP® and CDFA practicing in San Diego, California, Ginita is co-founder of the non-profit Women's Institute for Financial Education and author of eight books, including The ABCs of Divorce for Women.

Question: "I am targeting divorce attorneys in the Chicagoland area since I have divorce financial planning accreditation. I am finding it difficult to get referrals from the existing divorce attorneys I know, to give me other divorce attorney referrals. Any suggestions?"

Ginita Wall's answer: Getting referrals is always a dilemma. Here are the top five reasons that attorneys don't refer:

5. Don't want to be responsible for referral if it doesn't work out

4. Don't understand how you would benefit the case

3. Don't think of you when facing an issue

2. Don't understand your areas of expertise

1. Don't know you want referrals!

Number 1 is a biggie. Do you ever ask for referrals? I don't mean in the hemming, hawing, hinting sort of way—I mean straight out: "I like working with you, and I'd appreciate you letting any colleagues you know about me and what we are able to accomplish together on cases."  Or "I'm wanting to meet some new attorneys—why don't you invite a colleague to come to lunch with us, my treat."

At the other end of the list, Number 5, some people simply don't feel comfortable with making referrals, but fortunately there aren't a lot of those overly-cautious people around. Most people are comfortable referring you to others if they know you, trust you, and understand how you can help. So get to know the attorneys well, keep in touch on a regular basis, and let them know how you can help. And remember, the more you refer to them, the more they will feel obligated to refer back again.

And that leaves Numbers 2, 3 and 4, which are all related. Here are some suggestions to improve your odds in these areas:

• Crow about your successes. Make it a practice to describe situations in which you were helpful, and how your talents contributed to a successful outcome (or mitigated the problems, if the outcome wasn't so successful as you might have liked.)
• Tell the attorneys something they don't know. Give them a financial tip they can pass onto their clients, talk up something in the financial news and how it applies to them, anything to bring your world of finances to their world of law and clients.
• Create a newsletter that you send to attorneys, in email or printed form. Tips, success stories, whatever you believe is of interest.
• Create a financial seminar to which attorneys can invite their clients.  Or even better, create regular program on divorce for your community. 

Years ago I started a divorce program in San Diego called "Second Saturday: What Women Need to Know About Divorce," and in June we begin our eighteenth year.  The workshop takes place once a month at a local community college, and we have a rotating roster of speakers that includes attorneys, therapists, mediators and myself. 

More than 7,000 people have gone through the program, and we have raised over $65,000 for the scholarship program at the college.  And to top it off, the seminar has been a pivotal resource in my success in the field of divorce.

You are welcome to adapt the format for your use. Visit www.SecondSaturday.com for more information).

Got questions or thoughts about today's challenge or Ginita's response? Post a comment.

How to Motivate a Top Attorney (and Client) to Make Referrals

Welcome to Day 12 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question comes from Chris M, an independent advisor from San Diego. Nice work, Chris!

Chris's question will be answered by Mike Schultz. Mike is the publisher of RainToday.com,  a principal with the Wellesley Hills Group, and coauthor of How Clients Buy: The Benchmark Study of Professional Services Marketing and Selling From the Client Perspective.  Mike is a frequent speaker and consultant to service firms worldwide on topics such as service firm branding, marketing, lead generation, and rainmaking.

Question: "I have a client who is one of the top ERISA attorneys in the area. He is also a partner in a large firm. I have been trying to network with him. He personally only does alternative investments with me (he has no interest in anything else). He has all the business he can get, so is not incentivized by networking. How can I motivate him to refer corporate clients (or other attorneys) to me?"

Mike Schultz's answer: "I am a top chef. I have a high-class customer that comes to my restaurant to get a fresh-baked cookie every day after he has two filet mignons from the restaurant down the street. He does this every day. He comes in. He's full. Wants a cookie. But I want him to have the grilled calamari and the fettuccini carbonara special along with the cookie. What can I do to get him to eat it all?"

There's no piece of advice that is a "secret" to get everything changed around. Like most networking and selling, it's a long haul and if you keep plugging at it, over time, you might get him to skip the steaks one day and try the fettuccini. But you might not. 

What you need him to see is the value of paying attention to you more, and giving you more time and brain-space. So my question to you is, why should he do other things with you? Why should he give you referrals?

I'm guessing you think (as do most financial advisors) that, "Once I get a client, they're with me for life." Well, perhaps he already has someone for the other financial matters that he likes, trusts, and won't switch away from. He might have three guys and doesn't need a fourth. They get the referrals.

But... one of them might move to Peoria one day. You'll find that someday he might say, "All right, let's talk. I have a few people to introduce you to," if you:

• Consistently deliver strong value with your alternative investments.
• Pleasantly but persistently keep communicating with him about the value you can provide other than what you're doing.
• Do this for the long haul.
• Ask for referrals the right way (see below).

I'd also suggest that you speak with him straight out. "Jim, I'm looking to expand my practice in X, Y, and Z areas. I've mentioned this before and I've gotten the sense that it's not on your radar screen to refer people to me. But I'd like it to be. Can you tell me 1)is my sense correct, and 2) if it is, can you tell me what I can do for you and/or your clients and colleagues so that you'd have enough faith and confidence in me to give me referrals?"

You might find that:

• He likes the straightforward talk and says, "OK—referral time for you." (Wouldn't this be nice?)
• He tells you, "OK—here's what you need to do to get into my circle." (And then you'll at least know.)
• He tells you, "Here's where I've been disappointed in you, and why you haven't gotten referrals." (And then you'll learn a lot and, if you're interested in growing your practice, you'll do something about it.)
• He says, "There's nothing you can do. I have my people. I'm retiring in two years. I like you, kid, but find someone else." (And then you can choose to move on or not, but you'll know where he stands.)

Here's what to avoid: As you constantly communicate with him about your value, don't pitch him. "Sell sell sell" won't help you.

Instead, send him articles, research, case studies, and other helpful information for him in the areas where you want to position yourself.

Send him referrals. Number one rule of networking: give to get.

And remember—as good as you might be—there is still a numbers game component to it. It might be in the cards to get him to eat the fettuccini, or he might just not be going there. But if you had 10 of these guys in the exact situation, and you worked them all as per above, you'd win over your share.

Good luck.

Got questions or thoughts about today's challenge or Mike's response? Post a comment.

How do I Get My Bank Colleagues to Send Me HNW Referrals

Welcome to Day 11 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Dylan, an advisor from British Columbia, Canada. Congrats, Dylan!

Dylan's question will be answered by Bob Cobb, the President and CEO of Ultimate Bank Advisor, a sales training and coaching company dedicated to helping advisors build the practice of their dreams. Bob's 20-year brokerage career included six consecutive years of Chairman's Club Production and 12 years of Sales Management and Branch Administration. Bob was voted Banc of America Investment Services Sales Manager of the Year in 2000.

Question: "I work at a full-service brokerage firm owned by a bank and we are competitors when we come across prospects or existing clients. On paper we are to work together, and we are positioned better to work with HNW families. I have sent referrals their way. How can I position myself to be on the receiving end?"

Bob Cobb's answer: Great question.  You are already sending some referrals their way, so you are already letting them know that it will not be a one-way street (this is one of their biggest complaints), but just as when you are attempting to work with CPAs and attorneys, that is not enough.

Here is a 5-step process that will have a dramatic impact on your referrals received:

1. View the world through their eyes.  Bankers often see only risk when they refer to you.  They have the relationship with the client (and they often have only 30-40 active at a time). If they don't know you, they often assume that referring business to you could be risky.  (This is the result of previous relationships that seemed like they were off to a good start, but were not). 

   Broadcast a bit on their favorite radio station WIIFM (What's In It For Me).  When you talk to them, be better able to answer the question "What will you do to make my relationships with my clients better?"  (Hint: Investment Management, Trust and 401K plan business all make their relationships with their clients much stickier, and give them a great reason to reconnect with clients that don't have a banking need today).

2. Develop a Joint Value Proposition. When you start working well together, clients will love that fact that you have experts on both sides of the balance sheet. 

   How can you position yourself as a team that will have the prospective client concluding you are different (read better) than the competition?

3. Walk the walk.  You say that you are referring people to them today. When you do that, are you positioning the banker powerfully in the mind of the client?  Does the client conclude that they definitely should meet with the banker? 

   Have you elicited the banker's ideal client and their value proposition so that you are making a powerful hand-off to the banker (and not sending them the equivalent of a 529 plan that starts with $500 and adds $50 per month)? The training that you have received dwarfs what they have been exposed to—so lead by example, be their sales coach, walk the walk!

4. Go on joint calls.  They have new business goals and in most cases are not comfortable making new calls.  Picking out some "joint prospects" is a great way for you to coach them on some new call strategies and demystify your process. 

   When they have seen you in action two or three times, and see that you have a client-centered process, much of the risk and resistance melts away.

5. Go above and beyond!  When you do get a referral, keep them in the loop.  Call them with updates as to exactly where you stand.  If you have left three messages and the prospect hasn't called back—or if you are playing phone tag—let the banker know.  In a new referral relationship, not knowing equals fear and uncertainty.  Think the Weather Channel and CNN: constant updates! 

   When you open the account, service the daylights out of them.  Nothing builds your credibility and trust as quickly as a newly referred client calling the banker back and saying, "Oh my goodness, John, I have been an investor for 20 years and I have never seen anything like that advisor you referred me to at Galaxy Financial!" A couple of newly referred clients that give you that feedback and you will be well on your way to the relationship of your dreams.

The bankers might be intimidated by you (like being paired with Tiger in a Pro-Am Golf Tournament) or might have a Hollywood impression (Wall Street and Boiler Room) of what advisors are like.  These five steps will reframe the way they look at you and help them to see you as an incredibly valuable asset in helping them reach their business goals.

Hope this helps!

Best wishes,
Bob

Got questions or thoughts about today's challenge or Bob's response? Post a comment.

Asking Centers of Influence for Referrals Without Appearing "Aggressive"

Welcome to Day 6 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Gregory F., an advisor with a regional firm in Virginia Beach, Virginia. Congratulations!

Gregory's question will be answered by Bryce Sanders, a 20-year industry veteran, author of Captivating the Wealthy Investor, and president of Perceptive Business Solutions, a firm that trains advisors on how to identify, meet, and cultivate high-net-worth individuals.

Question: "I am a member of three Boards of Directors for non-profit organizations and have come to know many community business leaders and HNW individuals through these organizations. How do I approach these individuals to ask for referrals without appearing too aggressive or money-grubbing?"

Bryce Sanders' answer:

Let's start with a few assumptions.

1. They are prequalifed—you would like to have them as clients themselves
2. They would be a good source of referrals 
3. They know what you do and where you work yet have never approached you
4. The perceived "risk to friendship" is the barrier.

Strategy One:

Convert the barrier into the opportunity for the approach:

"Sean, we've known each other for a long time. I've never approached you for business because I value our friendship.  I wouldn't want to put our friendship at risk.

Besides, you probably work with someone already who takes great care of you. Most successful people do.

It's been a difficult 5 years in the market. You may know some people who haven't been as lucky as you. It would be worthwhile to spend a few minutes talking about what I do, so when you encounter some of those people you will know how I may be able to help them."

Rationale:

• You have 'led' with the unspoken 'risk to friendship'.  It shows you value their friendship highly.
• You have made a few assumptions:  They work with someone, they get great service because they are an important client to their adviser.  At this point they may respond - "I don't get attention and great service"  The door is open.
• You are offering to help people they know who haven't been getting attention and great service like them.  It becomes your rationale for launching into a brief overview of what you do.
• You do different things for different people.  You can tailor what you do to their needs (business owner, fixed income retiree, etc.) to make the connection you help people like them.
• You have explain what you do in the context of their needs without making them feel uncomfortable.

Strategy Two:

Don't approach them as a friend.  Don't approach them as an individual prospect.  Approach them as you would an investment professional who runs an endowment or scholarship fund.  In that approach, two of the many questions you would ask are:

1. When do you review the performance of the money managers you use within the endowment?
2. Are you open to presentations from outside money managers at that time?

"Sean, you've explained you use professional money management for your personal investments at ABC Securities.

We offer professional money management at my firm.  We are competitively priced.  We have good performance figures.

When do you review the performance of the money managers you use at ABC Securities? I'm interested in winning some of the business. Are you open to presentations from outside money managers at that time?"

Rationale:

• You are approaching them as a professional although they are a friend or acquaintance
• You recognize they use professional money management with a competitor
• You asked when they get their periodic review from their adviser (This may reveal they don't get them)
• You have asked to "be in front of them" when they are considering making changes.  Tom Stanley has advocated good timing for years.  When their adviser reviews a portfolio with multiple money managers, what do they do?  They recommend rebalancing and reallocation. The friend is in the mindframe to make changes. Perhaps they accept the sell recommendations and move those funds to you. Now you have the initial funds to establish a new relationship.

Got questions or thoughts about today's challenge or Bryce's response? Post a comment.

Asking Top Clients for Referrals—How Not to Appear Desperate

Welcome to Day 5 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Lynette B., who's with a wirehouse in Dublin, OH.  Congrats, Lynette!

Lynette's question will be answered by Dan Finley, President of Advisor Solutions, Inc. a business development consulting and coaching service for financial advisors.  Dan was a successful financial advisor for thirteen years before founding Advisor Solutions, Inc. 

Question: "I have done such a good job of packaging myself as an advisor to the elite that I have trouble now asking the chosen I work with for referrals without sounding like I am not who I purport to be. How does one elicit their help and ask them to help add onto my practice without looking as if I am needy or not as successful as I portray?"

Dan Finley's answer: Asking your elite clients for referrals when done properly can create a very powerful, positive image.  But setting the stage for a very successful referral campaign with your elite clientele needs a well thought out plan complete with the type of content that elite clients can relate to.

First, you have already successfully completed the very first step, which is to convey the message that you are an advisor to the elite. You are not willing to work with just anyone. Your niche is to help the elite with their complex financial challenges.

Second, you need to take the message to the next level by explaining to them that you are not growing your business in the traditional sense; meaning by adding just anyone—even people who may be considered elite clientele—because you only have so much time in the day to devote to your current client base, who are people that you like.

Third, you need to convey the message that you always have time to help your clients' friends, family and colleagues. In fact, you prefer to work with people who have a relationship with your clients.

Fourth, you need to structure the message that giving you referrals is not about helping you get another client, but rather about helping your clients help someone else.

Fifth, you need to dig deep inside and have a genuine belief system that your mission is to help your clients help others. This may or may not produce financial results for you in the short run, but it will definitely produce incredible monetary and non-monetary results in the long run.

In the right dialogue, this conveys a very powerful message that you are not needy at all, but rather very successful and again are only willing to help those whom your clients want to help.

Let me illustrate a very brief dialogue:

Client: How's business?

Advisor: Great! In fact, I've been so busy that I have decided not to take any additional clients unless they are friends, family or colleagues of my clients, people that my clients want to help.

Client: What do you mean by, “want to help”?

Advisor: Well, how have I helped you the most since we have started working together?

Client: You have helped me reduce my taxes, consolidate my investments, and make sure my estate planning is in order.

Advisor: Who do you believe needs your help the most by getting that level of service?

This is a brief dialogue that powerfully expresses the messages that you have a successful business, you are busy, you have brought value to your client and you want to help those whom your client wants to help. There is nothing needy or desperate about it.

Since you have already positioned yourself as the advisor to the elite, your clients will refer you to someone whom they want to help that will naturally fit your elite clientele. Remember, most affluent investors feel most comfortable speaking with a financial advisor to whom they have been referred.

Got questions or thoughts about today's challenge or Dan's response? Post a comment.

My CPA Won't Refer and Now His Son Is My Competition

Welcome to Day 2 of our Referral Clinic and Blog-a-thon!  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by George M., who's with a regional firm in St. Louis, Missouri.  Nice job, George!

Daryl Logullo, founder of Strategic Impact, will be answering George's question. Daryl helps advisors attract more clients using direct response, strategic alliances, and client referral strategies.

Question: "I have a CPA that has done my taxes for over 20 years. During that period, I have given him an average of 1 or 2 referrals a year. Many of them have become his clients. He gave me one, some time ago. This tax time when I dropped off my records, I noticed that one of his sons, just graduated from college, has set up a co-located office with him and is affiliated with one of the 'independent' broker-dealer networks. I commented on this and was told, 'We have so many clients that need this service, we decided to get into it ourselves.' 

Over the years my contacts with other CPAs have gone nowhere when they learned I wasn't interested in giving them my tax business.  This seems to be part of the price you pay in my market. So I kind of have all my eggs in one basket.  What do I do now?"

Daryl Logullo's answer: The short answer is, you move forward! Besides trust, referral alliances love one thing: consistent momentum. Sounds like you're feeling paralyzed.

First, the son.

Attempt to forge a relationship. Be genuine and honest. Protocols may include a further introduction made on behalf of the father; an invitation by you to provide advice on a prospect of client proposal you are working on; even inviting him to participate in one of your quarterly client meetings. Bottom line: move forward! With or without the old man.

You can also do the same with other CPAs in the marketplace.

I do want to comment on the twenty years of knowing and trusting the 'father CPA' since that sounds like a regrettable point to you. There is a semblance of a relationship there. At the very least, the CPA knows your skill set. But are you certain that during those 20 years he has experienced all of your work? Does he truly understand all of your competencies?

If so, use that to your advantage; if not, there's hope. But it requires an open, honest conversation about core competencies. It involves you "bringing" the CPA into your monthly world of financial advice and counsel. The examples I gave above can help.

Now: how to go about moving forward. Please understand that in many instances referrals from CPAs tend to deal with seasonality factors (among other things). I write about this in Chapter 13 of my book.

CPAs often run a cyclical and seasonal business. Yet, if you have a good relationship with the CPA (or any professional for that matter), I firmly believe you should be able to sit down, face to face, and confidentially, tactfully say, "I understand that there is a lot of timing involved here—and I've sent you some clients through the months—but tell me:  Are you seeing any situations now that may be a good fit for me?"

Asking that question isn't pushy, domineering, or aggressive. It's acceptable business behavior between valued professionals.

Just realize that in all likelihood the CPA may have a narrow picture of what you want from him. In your example, sounds like you've always dropped off tax info. Maybe that's all he knows your needs to be: Using him for tax prep!

Clearly define what the circumstances are that would be right for the CPA to contact you.

Can you think of such situations?

I can. For example, maybe he should contact you whenever he faces a question concerning a lump sum retirement plan distribution for a client. Or whenever there is a  family inheritance issue for a client. Or whenever a client wants to convert her UGMA account to a 529 plan.  You get the idea. I refer to these "life cycle events,"  or L.C.E.s. Detail what L.C.E.'s warrant a phone call to you. Be specific!

Often, written tools such as a Client Profile or an Ideal Client Picture help to communicate this. Those are great tools that every advisor should be using.  Remember: referral alliances love consistent momentum. Start creating some and watch what happens. Good luck!

Got questions or thoughts about today's challenge or Daryl's response? Post a comment.

More on comprehending your value

Last week we talked about adopting a client-centered mindset toward asking for referrals.  I said the key to that mindset is recognizing that you offer people valuable knowledge and expertise, and focusing your referral efforts on sharing those gifts with OTHERS, rather than on helping yourself.

This is a difficult paradigm shift for many advisors. In this new paradigm, you're focused on enhancing your client's life and the lives of people they know. But if you're like many advisors, you are so immersed in your own need to generate business that you tend to forget that your clients perceive you as someone who does, in fact, enhance their lives.

To comprehend the client-centered mindset, you've got to be able to think like your clients, and see yourself through their eyes. Your clients see you as someone who brings value to the table. That means you've got to recognize that value too. But this is something advisors often have trouble doing.

So today I'm going to suggest an exercise that may help shift your thinking. I want you to close your eyes and think of a trusted professional in your life—someone who has contributed to your life in some way and counts YOU as a loyal client. This could be an attorney, an accountant, an architect or real estate agent, a doctor—any professional whose services you truly value.

Take a moment and think about this person. Visualize the role they play in your life. If they've done something tangible for you (like built a house or healed your child), picture that. Think about how they've helped you or your family, and how their help has made a difference in your life. Really feel that relationship and their value to you.

Now, imagine that this person has just asked you to introduce them or recommend them to a specific person you know—someone they could help in the same way they’ve helped you.

For example, imagine that your cardiologist (who saved your life with open heart surgery) remembers that you mentioned your mother was having heart trouble, and asks if she might be open to a second opinion. Or your accountant (who saved you $20,000 on your taxes last year) says he recalls you play golf with the owner of a certain small company every Tuesday and asks if he might join the two of you in a round, on him?

Pay attention to how you feel about this request from this special professional in your life. Are you angry or offended? Do you feel they were out of line?  Are you likely to say yes to their request? How do you feel as you think about this scenario?

For most advisors, a light bulb goes off when they go through this mental exercise. Suddenly, they see THEMSELVES as that essential, valued professional their clients see.

Try it. It may transform how you think about referrals—and your relationships with your clients.

Subscribe to our free referrals newsletter.

The ABCs of Automatic Referrals: C is for Client-Centered Mindset

Do you feel like the Cowardly Lion every time you think about referrals?  Does the mere thought of asking make you feel uncomfortable ?  If it does, chances are you think that referrals are about YOU and building your business.

Ironically, not only does that mindset make many advisors reluctant to ask for referrals, it also makes the requests less effective. That's why one of the first keys to referral success is adopting a client-centered mindset.

What does that mean?

When you adopt a client-centered mindset, you begin to recognize that referrals are not all about YOU. In fact, a referral is an opportunity for you to help someone ELSE—a new client—as well as the person who referred you.

Here's an example, a true story we heard from Laura, an independent CFP. One of her clients mentioned in passing that he had a friend who was sick and had to go on disability. A week later, Laura was meeting with the client, and because she’d read the Automatic Referrals report and was wearing her referrals detective hat, she thought to ask after the disabled friend. She asked how he was doing, then mentioned to the client that she has a lot of experience helping people with disabilities, and perhaps she could help his friend.

Laura's client got on his cell phone right then and there—still sitting in Laura's office!— to call his friend and tell him he must IMMEDIATELY call Laura and schedule an appointment.  The friend took the advice. It turned out that he and his wife were quite wealthy, and became clients.

This is a textbook example of the client-centered mindset. But it doesn't have to be about disabilities. Whatever your specialty or target market (free registration required) happens to be, remember that your job is helping your clients overcome certain challenges and achieve certain goals.  Their friends, family members, and colleagues most likely have similar challenges and goals with which you can help.

So, instead of thinking of yourself as scrounging for new clients when you ask for introductions or referrals, realize that what you are really doing (or should be doing) is offering guidance and expertise to the people your clients care about.

You're not asking for help. You're OFFERING it. That's the client-centered mindset in action.

By the way, asking for help is fine too.  It's all in how you do it.

Subscribe to our FREE referrals newsletter.

Client comfort inspires more referrals

In a recent Duct Tape Marketing post, John Jantsch asked that all important question: could your business be more comfortable?

"Everyone just wants a little comfort in life," John writes.  "I will always be drawn to people and products and companies that just seem to make me feel better. I think really that the whole of the world is looking to do business with companies that aim to transform their lives—even if that transformation is found in the tiniest little thing."

Well, amen, brother.  Who hasn't heard the old saying: God is in the details.  Are you making your prospects and clients feel special and comfortable at every touch point?

In an article on Horsesmouth, advisor consultant Katherine Vessenes talks about how she taught one financial advisory firm to see itself through the eyes of its prospects and clients (free registration required), from the parking lot (where they realized their signage was poor) to the lobby (where the lighting was dingy, the receptionist was AWOL, and the only beverage available was water served in a styrofoam cup). 

If this firm just cleaned up the reception area, changed the paint color and improved the lighting, and ordered some better furniture, Vessenes suggested, they'd be well on their way to at least a par client experience.  For a slightly larger investment—a few hundred dollars for an Oriental rug at Home Depot and some $3 Mikasa crystal glasses—they could begin offering the kind of service that inspires client loyalty and, ultimately, more referrals.

Look around with fresh eyes.  Even if you have no control over certain aspects of the client experience (if, for example, you work in a branch office and can't make changes to the lobby), ask yourself what you can improve about YOUR workspace.  And of course, there's more to comfort than lighting and refreshments, so take a good look at your client service strategy.  These simple exercises can transform your business and amp up your referral flow. 

Here are some resources (free registration required):

Is Your Workspace Giving Clients a Negative Message?
If you've been letting that paperwork pile up, watch out.  A messy, disorganized office sends a negative message to clients and prospects—and saps your energy, to boot.  Here are some tips for giving your workspace a cheap and easy makeover.

A 6-Step Client Service Strategy That Works
A Horsesmouth member called recently and said he needed to create a systematic client service strategy—fast! We said we could help. Here's the action plan.

Subscribe to our free referrals newsletter.

Bob Cobb on unleashing the referrals in your book

Today we're featuring a guest post from Horsesmouth contributor Bob Cobb, President of Ultimate Financial Advisor. 

How many referrals did you give today? I suspect that it might be more than you already realize. Did you tell a friend about a restaurant? Recommend a good movie or book? Hook a friend up with a merchant or service provider that will "take care of them?"

Pay attention to the next couple of days and I suspect that you will find that you are making referrals all the time. So is everyone else.

The weird thing, too, is that they are almost all unsolicited: "Hey, Tom, have you tried the new sandwich shop down the street? It is wonderful; the smoked turkey is out of this world."

Throughout the day, every day, people are making recommendations. Are you getting your fair share?

For most advisors the answer is no. Most advisors never ask for referrals from clients, and many never receive any. A lot of that has to do with three things:

1. The service that you deliver
2. How you are positioned in the mind of your client
3. How you approach the subject

Item #1: the service you deliver

Ask yourself a simple question. Are you referral-worthy? Are you delivering a level of service to your client that is consistently surpassing their expectations?

Two variables come into play here: The client's expectations (how have you managed them and what have you promised?), and what the client is receiving (your level of service).

There is an old adage, "under-promise and over-deliver."  To put it in mathematical terms: 

Client's Experience - Expectations = Client Satisfaction.

The number of unsolicited referrals you receive is a good barometer of how you are doing here.

Item #2: How you're positioned in the mind of your client

Are you the go-to guy or gal for your clients anytime the subject of money comes up? Are your clients aware of all your capabilities? Do they have a clear idea of your mission and your process and what your ideal client looks like? If the answer here is no, then you have an opportunity. Have you made it easy for them to give you referrals?

Item #3: How you approach the subject of referrals

Here are two common ways that people approach referrals that in my mind are ready for the Museum of Extinct Sales Techniques:

• The "I get paid in two ways" conversation
• Pulling out the legal pad, poising the pen at the ready, and asking, "Who else do you know that I should be talking to?"

I assume that these techniques must have worked once.  But let's take a quick visit over to common sense corner and think about how we feel when we are the client.  Have methods like that ever worked on you? The answer is generally a resounding no!

Here are 8 keys to getting the referral train either to leave the station or to pick up some momentum:

1. Focus on a specific niche (free registration required) and become an expert in that niche’s desired outcomes and common obstacles
2. Create (or leverage something already created by your firm) collateral material that discusses those outcomes and obstacles and your solutions
3. Have a clearly defined process for helping clients clearly identify their outcomes and help them navigate the pathway to their personal promised land.
4. Under-promise and over-deliver
5. Plant the seeds for referrals early, often, and in a way that positions you as a more valued resource and partner in the mind of your client
6. Make sure that they know the type of client that you are looking for
7. Remove the risk of making referrals
8. Follow up with all parties involved every step of the way (obviously this doesn’t mean violating confidences, but keep the referring client in the loop)

Thanks to Bob for sharing his referral wisdom.  If there's a referral or business development expert whose ideas you think we should feature here (or if you're interested in being a guest blogger on Automatic Referrals), let us know.

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Find the referral formula that works--then stick with it

In a recent Duct Tape Marketing post, John Jantsch put his finger directly on a very common marketing challenge for advisors. He writes:

"There is a Buddhist concept called the monkey mind. The monkey mind is the name for that clamoring in your head that hates the silence, hates the mundane, hates to sit still.

I think small business owners suffer from the marketing monkey mind. They can't stand to listen to the same marketing message over and over, they yearn to bounce off the walls in search of the new, new marketing message and they hate, more than anything, repetition.... Stop changing what you say, what you look like, what you do—stick with something long enough, repeat it over and over until it makes you ill (or becomes a mantra)."

Jantsch is talking about small business owners, but his observation fits advisors to a T—although in their case, it's more typically tactics that change, as opposed to branding or marketing messages.  As long-time advisor coach Joe Lukacs once told me:

"Lack of consistency is a real problem in this industry.  Advisors often stop doing what works out of sheer boredom.  If you want to try new strategies, try small tests, slotting in the new methods without taking time away from proven techniques. You may have to work a little harder for a short amount of time, but don't abandon what works.  Recognize what works, bottle it, and stay consistent."

This advice is true for referral marketing as well as marketing and prospecting in general.  As Jantsch suggests in his post, the end goal of any type of marketing is to get prospects to target YOU, rather than the other way around.  Know which markets you serve.  Be clear about what makes you unique in serving them.  Figure out who your best referral sources are for those markets, and then be consistent in asking them for introductions and otherwise engaging their help to get the word out.  You'll start to develop critical mass in your chosen markets, and the referrals will begin flowing more and more freely.

You can conquer monkey mind and make referrals truly automatic in your practice by remembering Jantsch's and Lukacs' sage advice: "Stop changing what you say, what you look like, what you do. Recognize what works, bottle it, and stay consistent."

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Communicate your unique value to clients

In The Legal Marketing Blog this week (which I follow, because financial professionals can learn a lot from other professional services firms), Tom Kane asks a great question, inspired by John Janstch: are you your own competition?   The thesis here, applied to our business, is that every financial advisory practice is unique in some way—but that clients don't perceive the subtle differences between advisors and their practices, and therefore view your business as basically the same as everyone else's.   So in fact, you're not really competing so much against other advisors as you are against your own inability to communicate your unique value.

This rings true.  Sure, you may offer the same products or money managers as some other advisors, but essentially, you and your team ARE your business, and since you're all unique individuals, your business is by definition unique as well.  The more you can get that uniqueness across to your clients and prospects, the more you will stand out from all the advisors who don't make a similar effort to differentiate themselves.

Tom writes:

The way to beat the competition is to set yourself apart. Make your firm different—in how it provides services, returns telephone calls, having an identifiable niche, or otherwise doing something differently to stand out from other law firms.

Just replace the law lingo with appropriate terms and this advice applies perfectly to our industry too. 

Remember, though, that it isn't enough to do things differently. If you serve specific niches, make sure to talk about it, even with clients in different niches.  If you pride yourself on a top-notch service strategy, you can allude to it in your client reviews ("Because we are committed to outstanding communication with our clients, our policy has been to contact you an average of once every two weeks.  But we want to make sure we're sensitive to your needs.  Is twice-a-month contact too frequent for you?")

Value is in the eye of the beholder. The real key to differentiation is client perception—so help your clients see you in a unique light, and they'll be better able to refer you.  (Need some help? Search Horsesmouth's library of resources on financial advisor differentiation using the keyword "branding" [free registration required].)

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Referral failure: it doesn't mean you're unworthy

If you're uncomfortable about asking for referrals, does that mean that somewhere, deep down inside, you know you don't really deserve them? 

That's what Bill Bachrach asserts in his article "A Boomer-Smart Business" in the March issue of Advising Boomers magazine. He writes:

If you’re great at what you do, you won’t be uncomfortable asking people to introduce you to others. You’d never hear someone say, “I’m a great pilot, but I wouldn’t want to ask anybody to fly with me.”

With respect to Mr. Bachrach, I have to disagree with this premise that advisors are reluctant to ask for referrals because on some level they know they're not really referable.

The truth is that some of the best performing, most client-service-oriented and most conscientious advisors in the business feel extreme discomfort about asking for referrals.   

It's not because they doubt their ability as advisors—not on any level.   In fact, they have the opposite problem. They consider themselves to be professionals of the highest caliber, and they mistakenly view asking for referrals as unprofessional and "salesy." They're afraid that asking will make a poor impression on their clients.

It's that erroneous belief—the idea that asking for referrals is somehow beneath an advisor or will make clients uncomfortable—that prevents most advisors from being more proactive about referral marketing.  Fortunately, these referral fears are unfounded and relatively easy to eradicate.

Is it possible that you're afraid to ask for referrals because on some level you're not fully confident in your abilities, or suspect you're not giving your clients all the attention they deserve?  Sure, it's possible.   It's also possible, and much more likely, that you're a very good or even exceptional advisor who doesn't realize how much you do for your clients and how much they value you. 

If asking for referrals makes you anxious, you owe it to yourself to take an honest and objective look at your skills, your practice, and your client relationships.  If something does need improvement, you can get to work.  And if you're already pleasing your clients more than you've been giving yourself credit for, you can start trusting those relationships and making the most of them. The truth—whatever it may be—will set you free.

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Why your referral fears are irrational

Does the thought of asking your best clients for referrals make you feel queasy? Do you avoid asking because you're convinced your clients will run screaming, convinced that you're, in the words of one advisor, "a greedy bastard?"

By far, the greatest fear among advisors is the concern that asking for referrals will erode their existing client relationships—that clients will feel put upon and burdened by the request. But this fear is unwarranted. In fact, multiple studies have been done establishing that some 85% of clients are happy to give referrals—if asked (unfortunately, most never are). And in all the years that my colleagues and I at Horsesmouth have been interviewing advisors, we've never once heard a story of damage to a client relationship from asking for referrals.

So, if you're afraid of asking, chances are you have a distorted view of how fragile your client relationships are. You can overcome this challenge with just a small set of mental adjustments. Step back and take an objective and realistic look at your client relationships. For the most part, you're delivering value, right? In some cases, you may actually have changed a client's life—literally. They can retire earlier, or care for their elderly parents, or send their kid to a better college, because of what YOU have done for them.

Unless you have serious problems in your practice, it's probably fair to say that most of your clients like you and trust you and think you're worthy of their friends, family, and colleagues.

After all—if they didn't, would they even be your clients?

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Author, author! How publishing a book can improve referral results

Referral marketing works all by itself. But it needn't exist in a vacuum. If you bolster your marketing capabilities in other areas as well, you can make yourself more referable and also improve your closing ratio with the referrals you get.

Take becoming an author. In a new report, The Business Impact of Writing a Book, RainToday.com considers whether or not this time-consuming activity actually provides tangible financial results. "We surveyed 200 professionals across industries who have themselves written a book, or books," the report's authors write, "in order to answer that all-important question, 'Is the investment in blood, sweat, and tears worth it to my practice?' Our conclusion: a definite and resounding 'Yes!'.... 96% of authors reported that publishing a business book affected their practice either 'Positively' (49%) or 'Extremely positively' (47%)."

You can imagine the referral benefits of having a book with your name on it. For example, when one of Mark Colgan's clients tells her mother or friend about him, she can say, "Mark is a real expert in the financial issues of widows. He's even written a book on the subject" (free registration required). In this situation, you benefit from both the "credibility glow" of the referral and the additional credibility of being a published author.

A book can also be a door-opener with referred prospects. Prospects are often happy to provide contact information if it means they can get a free copy of something valuable, especially something as substantial as a book. And of course, a book helps in myriad other ways too, as the report examines in detail.

Maybe writing a book isn't for you. But do give some thought to what clients will use to help bolster your credibility when they talk about you. Perhaps it's an article, a column in the local paper, a tv or radio appearance, a good brochure with your name on it, or even just a few good stories about similar clients you've helped (free registration required on all).

Make it easy for others to make you look good!

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The surprising truth--how referrals affect client relationships

Do you avoid asking for referrals because you're convinced your clients will think you're pushy? Selfish? A "greedy bastard?" (That's a direct quote from a financial advisor explaining why he doesn't ask.)

Get ready for a shock.  85% of the financial advisors we surveyed told us that referrals actually strengthen their relationships with their clients. 

So here you are, convinced that if you ask your best client for a referral, he'll storm out of your office and immediately transfer every last penny directly to your competitor—when the reality is, the relationship will most likely do even BETTER over time if he starts giving you referrals. 

Why? Maybe clients cement your value even more in their own minds when they recommend you to someone else (after all, why would they refer you if they didn't love you), or maybe providing referrals makes them feel like part of your team.  Whatever the reason, it isn't really as counterintuitive as it seems when you stop and think about it.

Do you have experience with this phenomenon?  Share by clicking on the "comments" link below.

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4 ways NOT to ask for referrals

In a recent post, I talked about the client-centered referral mindset: positioning your referral requests in terms of how you can help your clients and the people they know, not in terms of how they can help you.

Common sense, right?  That's why it's amazing how many "referral experts" recommend methods of asking for referrals that not only focus on the advisor, but actually border on blackmail.

Do any of these sound familiar?

• "I can either spend my time looking for new clients or providing better service to your account. You determine that via the referrals you send me. Which will it be?"
• "Since you've found value in what I've done for you, let's sit down and brainstorm: Who do you know who could benefit from my services?"
• "I'd really appreciate it if you could refer me to a few of your friends. I need new clients to stay in business—it's so hard these days to find prospects."
• "There are two ways I get paid—from commissions and from your referrals."

As Horsesmouth expert and referral guru Michael Brizz says, if you're going to position referrals that way, you might as well have the word 'bloodsucker' branded across your head.

Here's a better way:

"You mentioned that your father is retiring soon and that he's been worrying about what's going to happen with his company's pension plan.  I have helped a number of clients who have also retired from XYZ Corporation over the past few years, and I think may be able to answer some of his questions and put his mind at ease.  Would you like to talk to him about setting up a time for the three of us to get together?"

See the difference?  Now you're a potential hero—a caring expert rather than an extortionist.

Check out chapter two of Automatic Referrals for more about the client-centered referral approach.  Also, take a look at Referrals: 8 Tactics That Make Asking Easier (free registration required) for more about how to make your referral requests more effective.

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Communicate value, build loyalty, and drive more referrals

In a recent "Marketing Tip" newsletter, Richard Weylman makes the critical point that our clients often don't recognize our value, even when it's staring them in the face.  They may not realize all of the complex and time-consuming work going on behind the scenes on their behalf, or they may be so wrapped up in their own lives that they just don't take time to think about how much you're doing for them.

There's the rub: getting clients to recognize your value is job one if you want them to refer you.  Weylman suggests these small but effective methods to communicate your value and build client loyalty:

• Publish an organizational flow chart (who does what).
• Conduct monthly service calls and select a process or outcome highlight.
• During face-to-face reviews: review services, processes, and product applications. Be pithy, powerful, persuasive and curious.

You can see the common thread in these techniques—they serve to make your process and team more transparent to your clients.  Don't be afraid to let them see firsthand how hard you work for them, and don't hesitate to tell them—with grace and subtlety, of course—just how much value you really provide.

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Reputation = Referrals

A colleague of mine had a frightening and frustrating experience recently that got me thinking about the power of word-of-mouth, both for good and ill.

We got pounded by a monstrous nor'easter.  Elizabeth was driving home from work in the middle of a heavy snowfall when the rear window of her year-and-a-half-old BMW suddenly shattered.  It scared her badly and positively traumatized her yellow Lab, Cooper, who was in the back seat.

Luckily, no one was hurt. Elizabeth and Cooper limped home, enduring the frigid air and the snow for the two hours it took them on the slick roads.

At the dealership the next morning, Elizabeth found herself haggling with a very unsympathetic service rep about how quickly they could fix the window and whether or not the warranty would cover the repair.  Unhappy but without options, she left the car in the parking lot (the service bays were all full), covered with a tarp (remember, there's a gaping hole in the rear and now it's pouring rain) and asked them to move the car inside as soon as possible. 

You probably won't be surprised when I tell you that when Elizabeth returned at the end of the day, not only had her car NOT been repaired, but it had been left to sit in the torrential rain for the entire day.

Elizabeth told me the story.  She told lots of other people the story. Now I'm telling YOU the story (although I am refraining from naming names).  And it's not a story any car dealer would want people to hear.  I can't help but wonder if the owner of the "Evil Dealership" has any idea that his business is imploding and that the service department is Ground Zero. 

(I should point out, as an aside, that after telling me her tale of woe, Elizabeth asked me if I knew of a GOOD dealer in the area.  I was delighted to tell her about the dealership where I bought my last car—and where I and my vehicle have always been treated with great care and respect.  They give me consistently great service, and I rewarded them with a referral.)

Even the most stellar of reputations can come crumbling down in very short order thanks if you mistreat someone who has a big circle of friends and the gift of gab.  But Give clients reason to sing your praises at every turn (free registration required) and you really can build an unstoppable business.

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Cultivating raving fans—a referrals lesson from J. Crew

Jackie Huba at the Church of the Customer has a great lesson in client service from, of all places, clothing retailer J. Crew. Seems Jackie stopped into her local J. Crew store to return some items on her way to watch a Steelers game at a local sports bar.  A clerk named Natalie helped Jackie with her returns, they chatted a bit about the Steelers, and then Jackie was on her way.

A few weeks later, Jackie got a handwritten note from Natalie containing a $10 J. Crew gift card, suggesting she drop by the store next time she was in the neighborhood to check out the new fall line. 

Jackie's reaction? 

If Natalie was a stock, I'd invest in her.

I've spent thousands at the Gap and Banana Republic but never received a note like this. I couldn't name a single employee at those two stores.

But I'll remember Natalie.

Tell us your story. What are you doing to turn your clients into raving fans (and drive more referrals)?

Think you may need to show clients a little more love? Here are some ideas from Horsesmouth (free registration required):

The 15-Minute Marketing Workout
Build relationships and boost your referrals with this low-tech, low-cost marketing strategy. It's incredibly effective, yet so simple you can get it done while you drink your morning cup of coffee!

Deliver High-End Service to Build a High-End Clientele 
Ever wonder why the same clients who grumble about your fees drop big bucks at high-end hair salons?  A little pampering can go a long way.

Impress Top Clients With 'Love-Affair Marketing'
In this competitive and uncertain world, romancing your clients with kind gestures can win their loyalty--and help solidify your business.

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Create "referral moments" by going above and beyond

I enjoy watching "referral moments" happen in my daily life.  I had that pleasure today.

I was supposed to get my teeth cleaned at noon. Unfortunately, my son's school play was cancelled last week due to a snowstorm and rescheduled for today at 1:00 p.m.  There was no way I could make both.  And the dentist's office policy is that if you cancel on the day of the appointment, you still have to pay for the visit. My day was about to get a lot more expensive.

I called the dentist's office and told the scheduler my situation, confirming that indeed, the normal policy would be that I'd have to pay if I cancelled.  But then, just as I was resigning myself to a double-whammy bill, she lowered her voice and said in a confidential tone, "Can you make it tomorrow at 10?"  "Sure thing!" I said.  "Ok," she continued conspiratorially, "you just come in then."  Clearly, she had just bent the rules and was not going to charge me for the switch.

It wasn't half an hour before I was telling this story to a coworker--because she'd just mentioned to me that SHE was about to cancel a dentist appointment for tomorrow.  Imagine what might have happened if, say, she'd been having trouble with her dentist, or if they gave her a hard time about rescheduling?  "Hey, Miriam, who's that dentist you were just telling me about?" 

In fact, she wouldn't even have had to ask.  I was feeling so warm and fuzzy at that moment that I would have offered the referral on my own volition, if my colleague had said even so much as, "My dentist doesn't have Reader's Digest in his waiting room." 

Now, don't get me wrong.  I would not have held it against my dentist if they'd held to their policy.  But I wouldn't have become a raving fan (free registration required), either. 

Do you go above and beyond for your clients (free registration required)?  Have you empowered your assistant and others who work with you to do whatever it takes to make clients feel that they come first?   Because the first step in getting more referrals is converting clients into raving fans.

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