Use 'We' Statements to Avoid Looking Needy When Requesting Referrals

One of the most common referral hang-ups we hear from advisors is that they don't want to ask for them because they're afraid that they will come off as desperate--that their clients will see them as unsuccessful and in need of help.
 
Instead of seeking more passive ways to generate referrals, or far worse, not asking at all, consider merely altering the focal point of your requests. Don't make "I" statements like, "I was wondering if you knew of anyone who could benefit from my services." Switch the subject to "we":
 
"Let's see who else we can help."
 
"I'm certain there are people you care about who might also value our work."
 
"There are many people who are getting no advice, bad advice, or incomplete advice. They are setting themselves and their families up for disaster. Let's explore who you care about, to make sure they're being taken care of properly."
 
It's a simple change, yet making "we" and "us" the subject of your requests effectively takes the emphasis of the conversation off of you and what you get out of it, and it also creates a stake for the client, making them more likely to act. If you're worried that asking for referrals will make you look vulnerable, try using "we" statements.
 
Here are some articles that offer additional strategies for bringing up referrals with your clients (free registration required):
 
A Referral Conversation That Works Today
http://www.horsesmouth.com/linkpo/82513.htm
When client portfolios have taken a hit, referrals are usually the last thing on an advisor's mind. But it's actually an ideal time to broach the subject, and here's a way to do it with tact and success.
 
A 6-Step Referral Script for a Down Market
http://www.horsesmouth.com/linkpo/82487.htm
It may seem counterintuitive, but the market climate now is creating a great referral opportunity. People are looking for solutions and expertise, so use this script to offer a helping hand to your clients' friends and acquaintances.
 
Referrals: How to Approach Friends and Social Contacts 
http://www.horsesmouth.com/linkpo/74369.htm
Suppose you have an affluent friend who socializes with other people of similar wealth and stature--but who's strictly a friend, not a client.  What's the best way to broach the topic of referrals without injuring your relationship?

To Get Real Results, Take Your Conversations Further Than You Are

Letting clients know you’re seeking referrals is certainly a good idea. They might take the message to heart and remember it when talking to friends and drop your name. The “might” in the previous sentence is the problem. When you leave it solely up to your clients to take charge and proactively seek out people they know and tell them about you, you’re setting yourself up for disappointing results.

The client may nod enthusiastically and agree to mention you to those they know, but from the moment they leave your office or stop talking with you, their personal concerns and the demands on their time begin to take over their attention (as they are only human), and your quest for more referrals takes a back seat in their priority list.

To avoid this and encourage action from your clients, take the conversation further—illustrate specific scenarios where they can bring you up and get them to commit to specific action steps. Dan Richards of Strategic Imperatives provided some effective talking points for doing this in a recent Horsesmouth article:

• "If you are talking to someone who is unhappy where they are, perhaps you could suggest that the three of us get together for coffee."

• "Recently I've identified the three traits shared by the clients I work with the best and find I can help the most. I wonder if I can spend two minutes going over these with you, should someone you're talking to be a fit for this profile."

• "I'm always happy to sit down with anyone you introduce and give them an hour of my time to talk about their situation and perhaps suggest an alternative approach for them to consider."

• "I will be conducting a couple of luncheon workshops for clients this fall, at which I'll be discussing how this economy continues to affect client portfolios and what strategies we're using. Many people find that a comfortable way to get a feel for my approach. If you know someone who might be interested, give me a call or drop me an e-mail and I'd be pleased to send him or her an invitation. If you're interested in attending, perhaps you can invite your friend to join you."

• "Please ask if it would be OK to send them a copy of my most recent newsletter; just drop me an e-mail or give me a call with their name and address."

• "You've told me you found the articles I've been sending you valuable. If they're interested, send me a note with your friend's name and e-mail address, and I'd be happy to add them to the distribution list for those articles."

See Dan’s entire article (free registration required) for more on what to say and do to get referrals in today’s environment. Also, see these other Horsesmouth articles for even more action points and strategies:

Getting Your Clients to Follow Through on Referrals and Introductions
Use these three handy scripts to help coach clients into giving more referrals--and following up on the referrals they promise.

3 Powerful Persuasion Secrets That Get More Referrals
If you're looking for more ways to get referrals, here are some worthwhile gems from a new book.

7 Ways to Get Specific Referrals
To get more referrals, you need to get specific. Here are seven ways to increase referrals, along with specific questions you need to ask your existing clients.

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).

Why Educating is the Key to Bringing on Clients and Keeping the Ones You Have

There is a paradox in today’s investment world, especially when it comes to the wealthy. In order to overcome loses from last year and recover their nest eggs, many investors want to get aggressive and capitalize on the market recovery. However, these same investors are still afraid of being burned again by a market plunge and many of them have lost confidence in investment professionals to guide them through.

Educating is a great way to overcome the fear and distrust many are feeling, since understanding grants peace of mind. An effective way to keep your clients informed is by sending articles to them, encouraging them to pass them along to friends and family, which also makes it a good stepping stone to referrals.

Here are some important points to keep in mind should you decide to start an article sharing strategy:

• Find articles that reflect who you are and your investment philosophy. Remember that the goal here is to educate the client or their associates, giving them knowledge about why and how you do what you do so that they feel comfortable with you managing their assets.

• Write a note on the corner of the article. This could be something as simple as, “Saw this and thought you’d be interested,” to explaining to them how the article fits in with their own portfolio strategy. This adds a personal touch, making it more meaningful.

• Keep tally. For an article sending strategy to work, you need to keep at it, and the only way to ensure that is to track how often you’re sending them out. Plan out how many you want to send each month and stick to it.

• Alternate mediums. Email makes it easy for clients to forward articles along to their friends, but don’t rely just on sending articles electronically. Mix it up by sending the articles via fax or physical mail. 

• Encourage clients to share! This one’s important. Always include a line written somewhere on the article or in the email about sending the article on to anyone who could find it useful. This is what will get you referrals.

• Get writing. Authorship is a powerful credibility establisher and trust builder. If you can, write articles for local papers or trade magazines and then send reprints to your clients.

• Avoid mentioning products. Whatever you do, avoid having the articles you send read like a product advertisement. This makes clients and prospects see you as a salesman, and that’s the opposite of what you’re going for.

See these articles for more on using education and article sharing to improve client service and ramp up prospecting (free registration required):

The Rule of 7: How to Build Mindshare and Win More Clients
How often do you follow up with a prospect? Do you make one call and hope that it's enough? Two? Three? Four follow-ups? Is there a magic number of follow-ups that will increase your chances of sales success when prospecting? Yes. The magic number appears to be seven.

How to Land New Clients in a Bear Market
Here's how one advisor is using a four-pronged approach to communicate with clients in a way that naturally grows his business during a market crisis. If you view the current turmoil as a buying opportunity, you must also see it as a once-in-a-lifetime opportunity to add new clients. Embrace it or waste it. The decision is yours.

Keeping the Faith With Clients
Now more than ever, the trust you engender will make or break your career. Here's how to consolidate clients' trust and keep it by being a leader in turbulent times.

One Good Thing About the Down Market...

People are talking about money. It's certainly not happy talk, but their finances are on their minds, and this is something you can use to your advantage. Your clients have had their ears talked off, no doubt, by friends and associates who are dissatisfied with their current advisor and who are hungry for quality advice. Consequently, many of your clients' radars are chock full of referral possibilities right now. Now is the time to bring up the subject of referrals.

Matt Anderson of the Referral Authority has just the script for such conversations. As he points out, the key is to ask open ended questions and to get your clients to be specific:

You: You know, it's been real interesting. We're finding that most folks don't talk about their money with their friends and family when the market is good. However, when the market goes down as we've experienced lately and investors are fearful, everybody seems to be talking about their money. (Now be genuinely curious.) Are you finding the same thing? (An alternative question that also works is, "Who have you heard talking about it?")

(Pause to allow your client to elaborate.)

You: What are you hearing?

(Let your clients talk and hopefully mention specific people they have talked to recently. If they don't mention names, be genuinely curious and say: Was this a client of yours? Someone in your family?)

You: It's interesting: We have been adding new clients lately as a result of some of these conversations. I attribute it to the fact that a lot of financial advisors are not returning client phone calls or simply going out of business.

(Follow up the last comment with a small anecdote, such as: "I got a new client a couple of weeks ago whose financial advisor happened to be his own uncle-but after three unreturned calls, he got fed up and contacted me.")

You: "You mentioned David, your client who owns the IT company. Do you think he might appreciate having a conversation with us? We'd be happy to share with him our views about the market or even possibly provide a second opinion to make sure his assets are properly positioned."

(Provided your client says anything other than no, continue on.)

You: What would be the best way to find out if he might be interested? Would you mind asking him or shooting him an e-mail to see if he'd be interested in a quick conversation?

If you've been good about showing your value and addressing client concerns during the down market, this script can be very effective. Be sure to read Matt's entire Horsesmouth article (free registration required) to learn more ways you can enrich the conversation.

The Advice Strategy

 “I’ve always been reluctant to approach family members or people at my country club,” says Linda, a Boston advisor. “I just feel awkward about it. Any advice here?”

When many advisors consider pursuing the business of relatives and even social contacts, they feel like they run into a wall that they just can’t climb. To approach these people is to somehow violate a trust, to betray the friendship and look like they’re only interested in the other person’s business. People can feel sleazy bringing up their services to family and friends.

The primary hurdle to cross is broadening your perspective, as Bob David, Director of Advisor Programs at Horsesmouth, says:

 “At some point you have to look at the other side of that question, which is if you avoid family members or people at the country club, how are you gonna feel if you hear, for example, that Uncle Joe did something stupid with his IRA rollover after working 30 years at the company, or a friend of yours at the country club never really did any estate planning and he left his or her family in a bind, and you know the spouse and the kids, and you’ve got that on your conscience that you had the expertise and skill set to help there. So there is a price to be paid for not approaching those folks.”

In addition to seeing things in full light, you can also adjust how you approach people. One way to conquer your anxiety is to enlist the advice strategy, as detailed by Bob:

“You might initially approach a family member or close friend or country club to ask them for their advice about how to reach others like them. And when you do that it puts them at ease. It appeals to their ego, and it also gives them a chance to see you in action. It might make it easier to bridge that conversation, and you might find them approaching you eventually about helping with what they’re doing.”

When approached this way, offense is taken out of the picture, and you leave your baggage behind and start helping people.

Leverage Your Expertise in These Uncertain Times

It’s been a very troubling couple of weeks, and no one really knows how things will pan out. Paulson’s bail-out plan has been under siege by the representatives on capital hill, and while they argue, the credit markets are freezing up. Tick-tock, tick-tock, goes the crisis time-bomb.

These are deeply troubling times, and that’s what makes them so great for getting referrals.

You may be fearful yourself, it’s only natural, but you are an expert. It is in such times of uncertainty and fear that your value as an authority shines the brightest. You can’t let the paralysis born of negative emotions prevent you from capitalizing on such a unique opportunity.

Here’s what Erin Tamberella of Executive Transformations has to say about the current referral potential:

“Referrals may be the furthest thing from your mind right now, but I can tell you from talking to advisors all over the country that both solicited and unsolicited referrals are on an upswing. Why? Human nature is to want to help, and people recognize that everyone could use some extra financial help and guidance right now."

A great time to position yourself for referrals is when you call your clients to touch base and relieve their concerns (something you should be spending much of your time doing in this environment). Erin suggests the following:

"Make this your closing line in every single client conversation: ‘By the way, do you have any friend or relative who has been touched directly by any of the institutions in the news and might appreciate a phone call from me with a quick update for them?’ Establish yourself as caring, compassionate, and wanting to help.”

So stop hiding under your desk—get up and grab the phone. You can’t control what happens in Washington or in the markets, but you can control your activities, and those activities can bring in some quality business right now. When you call clients, make sure to let them know that your expertise can help people they know, too.   

Other wisdom about what to do in a tough market environment like today's can be found in these articles (free registration required):

Advisor Paralysis: How to Stop It Now
If your clients are losing money and you're losing confidence, you need to raise your activity levels starting today. Follow this campaign outline to raise new assets. You'll battle creeping paralysis, boost confidence, and position yourself in your clients' eyes as a seasoned investment pro.

10 Rules for Reassuring Clients in Volatile Markets
When markets are volatile, we're more stressed and so are our clients. That's when it's more important than ever to articulate our recommendations and provide reassurance of a positive outcome. Here are 10 rules of effective language.

Calm Edgy Investors by Renewing Their Goals
Market gyrations make for squirmy clients.  Mellow them with some sage guidance.

Get the Appointment With an Information Packet

Bill Cates, president of Referral Coach International, has two rules when it comes to sending information to referral prospects: "Less is more" and "Provide value first." Prospects don't want to be bogged down with pages of information, and they certainly won't care about what you send if it doesn't relate to their unique situation. Yet if you do things right, an information packet sent after an initial correspondence like a phone conversation can be just the thing to convince a prospect that you and your services are worth their time.

To grab and keep the prospect's attention and arouse their interest, here's what Cates recommends you should include in your packet:

1. Cover letter. This should be brief, mentioning the referral source (the prospect's friend, colleague, or family member) right off the bat. Address some of the things you discussed on the phone in a way that's of benefit to the prospect. I like my cover letters to be more like cover notes. I use a half sheet with my logo. I generate the note through my computer. It keeps my letters short and more informal.
   When you're getting the referral, make sure you ask your source, "What do I need to say to George to get him to take an interest in the work I do?" Use the referral source's response in your letter.
2. Testimonial letters (or a sheet of quick testimonial quotes). Third-party endorsements work! The more specific the letter, the better—about your service, the process you put people through, the quality of your advice and wisdom, and so on. Remember, however, financial service professionals cannot use letters that speak about actual monetary performance. Clients can talk about your knowledge, wisdom, and service, but not their portfolio performance. When you have great clients who just love your work, don't hesitate to ask them for a short recommendation letter. Then use the letters—or excerpts from them listed on a single sheet—in your information packet.
3. Articles. Sending articles related to their needs, even if you didn't write them, elevates your status as an expert. Constantly be on the lookout for articles that your prospects and clients might find interesting or valuable. I suggest you underline parts of the articles, or write notes in the margins. This personalizes your clipping for that particular reader.
4. Brochure. This is an optional item. In my experience, most people don't read brochures, but they will read the letters and probably read the articles.
5. Something of value. What can you send to a prospect that might provide some value right from the start? Maybe the articles you send related to their issues will prove valuable. Maybe a book (compliance-friendly, of course) related to financial planning would be appreciated. The more you learn about your prospect, either from the prospect or your referral source, the more you can tailor what you send to him.

Read the entirety of Bill's article (free registration required) for even more advice on getting that first appointment with prospects.

It's Never Too Early to Pursue Referrals

When you have a sizable book, you have the advantage of existing client relationships you can draw on to launch and propel a referral strategy. Clients know and trust you, and they may be more comfortable recommending you to friends and associates.

But what about if you're just starting out or getting back into the swing of things and don't have many clients yet? Jim A., a rookie advisor, had this on his mind when he asked Bob David, leader of the Automatic Referrals Jumpstart Program, “I have only been in the industry a couple of months and I don't have any clients yet. Is [a referral strategy] going to help me start building my client base?” Without a big book to field client advocates from, is it worthwhile to pursue a referral strategy?

The short answer is, absolutely. Just because you don't have a large client base to leverage, doesn't mean you're bereft of resources.

“Remember,” says Bob, “while you don't have a client base yet, you probably know far more people than you think.” Additionally, he offers three methods new advisors can use to build their books and increase referral potential:

• 1. Research tells us that the most important factor in a new client choosing to do business with an advisor is not level of experience—it’s chemistry.
• 2. While you don't yet have a "track record,” you do have a narrative of some kind based on your own life story that can be just as compelling. Why did you get into this industry? What have you done in the past that can translate into success as an advisor?
• 3. Focus on your strengths. What can you do better than the competition even though you have less experience? Clients tell us that listening, for example, is extremely important in their advisor relationship. How about specializing in helping a specific niche based on your past experience? I know a very successful advisor that parlayed his experience with selling surgical products to surgeons to being a FA to surgeons.

It's nice to have a book of clients and strong relationships to draw on when pursuing referrals, but it's far from necessary. Don't wait for future conditions to grant some kind of credibility you think you need. You have your own strengths and knowledge to offer clients and their associates right now.

Bridging the All-Important Referral / Client Gap

Getting referred to is a big step toward gaining a client, but the business relationship is far from cemented at this point. You've been introduced to the referral, but things can still be awkward between you. After all, you haven't worked together and probably don't know much about one another. Sometimes it can be tough to bridge the gap and make the transition between the referral and the first appointment.

Brian V., an advisor in Arcadia, CA, asked Bob David, Horsesmouth Director of Advisor Programs and creator of the Automatic Referrals Jumpstart Program, how to turn that new referral into a new client. "A lot of times I am introduced to referrals and these referrals understand what business I am in," Brian wrote. "However, the topic of their investment needs never seems to come up in our conversations no matter how many hints I drop. Once you get introduced to a referral, what is the best way to approach the referral and ask for an appointment or to take your relationship to the next level?"

To transition the nascent relationship into a business one, you need to focus on the referral's perspective, or what Bob David calls the "client centered mindset." "Focus all your attention on learning about them and being interested in their situation, their business, their hobbies, etc. Then look for an opening," says Bob.

Once you discover more about them, you can explain how you've helped those in similar situations. You may think the natural thing to talk about is investments, but as Bob points out, that's not really the case. "We tend to think the opening is always about investments," he says, "But from the client's perspective, it's more important to identify a problem that needs to be solved. For example, if you're talking to someone who owns a business, you might ask how they got started, the nature of the business, how they would describe their best customers, etc...then mention you've been able to help other business owners and ask how they feel about their current retirement plan, cash management, succession plans, etc."

It really comes down to getting into the referral's head and learning their unique perspective. Once you do that, you're in a position to address their true needs and the business side of the relationship will naturally develop.