A 9-Point Checklist for Finding Great Referral Partners

When it comes to finding referral partners, referral expert Matt Anderson stresses the need for quality over quantity. "For example," says Anderson, "Alan New and his business partner share a financial planning practice in Fort Wayne, Ind. Last year they worked hard to build great relationships with a property and casualty insurance company, two CPAs, and two estate-planning attorneys, people who are arguably among the 15% in these professions who understand the benefits of cross-referring. They have gotten 65% of their business from the insurance agency and another 25% from the other four referral partners!"

So how can you find referral partners who will bring you that kind of business? And just as important, how can you avoid those who might waste your efforts? Anderson suggests asking yourself these nine questions before starting a partnership:

1. Does this person know others who would make great clients for me? Does she get out and network much?
2. Is this person competent in understanding and serving my client base and/or target market? Is he in a good position to talk about what I do for a living?
3. Is this person as hungry as I am?
4. Does this person ever refer others? Does she talk to her clients and people she knows about other needs they may have aside from her own core product and service?
5. How much do I like this person and does he really like me?
6. Would I recommend this person to my clients?
7. What will it take for me to become the go-to financial advisor that this person recommends?
8. Is this person truly committed to connecting with her clients and showing a genuine interest in their lives and hobbies or is she mostly "business as usual"?
9. Possible red flag: Is this person too easy to get a hold of?

By taking the time to qualify potential partners, you can ensure yourself successful referral relationships that will be far more beneficial for all those involved. Make sure to read Matt's full article for even more partnership advice.

Touch Referral Sources with a "Thinking About You" Call

One of my favorite prospecting experts, Art Sobczak of Business By Phone, recently gave some terrific advice for anyone trying to cultivate referral sources: "Call people and tell them you are thinking about them."

Simple, right?  Well, yes—and no.  As Art points out, people love to hear they're on your mind, but you can't just call or show up on their doorstep with no good reason to take up their time. He asks if you've ever been guilty of these very poor methods of staying connected:

The Probation Officer Approach: "Just checking in with you..."

The Baseball Opening: "Just wanted to touch base with you..."

The I've Got Too Much Time on My Hands Call: "Thought I'd give you a call to see how it's going..."

Ugh.

The point is, if you're not adding value, you're wasing their time, and yours. 

What you want to do, Art writes, is:

"...call with some news, an idea, something you heard or saw that could benefit them, a sale or promotion they could take advantage of...anything that would cause them to say, 'Oh, that's interesting stuff.'

For example,

'Hi Jim, it’s Pat at Universal Services. I was reading some new performance reports, and I started thinking about you. I realized that you might be interested in what these reports had to say, because of what you mentioned on our last call about...'"

When you read a newspaper or a magazine or a blog, be on the lookout for items that might be of interest to the potential referral sources in your network.  Share snippets of conversation or things you learn from clients and prospects that you think might be valuable to them. 

Better yet, offer the other guy some referrals first: "When Mrs. Jones mentioned this problem with her father's estate, I immediately thought of you and your expertise with this type of situation." 

Find value-added ways to let people know you're thinking of them, touch them regularly, and be patient—and watch the referrals start to flow.

Read Art's complete post, "I'm Thinking about YOU," here.

Keep a Referral Scorecard

Ivan Misner, president of worldwide networking organization BNI, published a great idea in a recent article on Entrepreneur.com (I saw it here, on MSNBC).  While it may be complicated to track results and ROI for most marketing strategies, he explains, it's actually quite easy to track your referral results.  How?  With a scorecard.

On this card, Misner suggests, record each referral. From whom did you get it, and how?  Was it unsolicited, or did you ask? If so, how?  How did you follow up on the referral? How did you follow up with your referral source?  Also track how you made referral requests that fail to yield new prospects.

When you keep track of all of these data points, Misner points out, you can then look back at what you did and analyze how successful you were and why. You can determine whether or not you're getting repeat referrals from specific clients.

It's the little things that make all the difference.  Did you forget to send a thank-you note?  Did you word your referral request just a little bit differently this time?  Pay attention to these small details, track the path and outcome of each referral you request and receive, and you'll be in a great position to tweak your referral strategy and improve your results.

Get Yourself a "Networking Buddy"

Public speaking expert Patricia Fripp has this sage advice for getting yourself some good PR at your next event: enlist a co-sales professional, friend, or even a client to form a duo. Attend meetings together, meet people separately, then come back together and introduce each other, like this: 

Suppose Natalie and Fred are secret partners. As Fred walks up, Natalie says to the person she's been talking to,"Jack, I'd like you to meet Fred. Fred has taught me nearly everything I know about sales and our product line. There has never been a sales contest in our company he hasn't won." Then, Fred can say, "Well, Natalie's being very generous. It's true; I've been with our company for sixteen years. But, Natalie's been here for only six months, and she's brought in more new business than any other person in the fifty-three year history of our firm, so she knows a couple of things too. I tell you, you couldn't do better than work with someone as enthusiastic as Natalie."

When you do this, explains Fripp, it lets you say great things about each other that you'd love your prospects to know, but that modesty prevents you from telling them.

Get More Referrals from CPAs

Saw a couple of good tips in Bill Cates' most recent ezine on becoming referable in the eyes of CPAs.  Bill's suggestions:

• Put CPAs through your process. If you don’t have a process to bring value early and often to your new clients, you can pretty much forget about getting referrals from them. You can also put your non-clients through your process. If you do financial planning, put that CPA or other Center of Influence through your planning process—without charging them.

• Become a CPA's "Advisor of Choice." Many don’t care if you give them referrals or compensation. They want to make sure their clients get the best financial advice. First, determine which of your 'A' clients have ongoing working relationships with their CPAs. So that these CPAs see your value, keep them in the loop with the work you are doing. Get written permission from your clients to share summary letters of your meeting with their CPA, as well as any other relevant work you do. Over time, the CPAs will begin to see the value of your work and how you relate to your clients. Soon, many of them will want more of their clients working with you.

Looking for more ideas to help enhance your relationships with CPAs? These articles (free registration required) may help:

How to Win Favor With Your CPA Allies
As April 15 approaches, savvy FAs take the initiative to shower their CPA allies with stress-relieving perks: it will build goodwill and stronger relationships.

Case Study: Quintuple Revenue by Co-Marketing With CPAs
This is the story of an advisor who took his production from zero to $50,000 in three months by cosponsoring teleconferences with CPAs.  Here's how.

Use Surveys to Boost Center-of-Influence Referrals
Client surveys not only strengthen your bonds with clients, they can be used to cement ties with strategic alliance partners. See how sharing survey data and conducting joint surveys with CPAs and estate attorneys can lead to more qualified referrals.

Hosting CE Credit Workshops for CPAs: A Primer
Providing continuing education for CPAs isn't as difficult as you might think. Here are seven guidelines that will get you on track to make it happen—and some insights on why you should consider this approach in the first place.

Why CPAs Distrust You—And What You Can Do About It
Still trying to get your strategic alliance off the ground?  Recognize how a CPA's worldview and work focus can create barriers to working effectively with a financial advisor. Then implement a four-step plan to win trust.

You can find many more articles on Horsesmouth about forming strong strategic relationships with CPAs and other professionals. Just search on the keywords "CPA" and "strategic alliances."

What's Your "NQ?"

Are you a natural networker? Are you taking full advantage of the opportunity to meet new people that may turn into clients or referral sources?  Discover your "networking quotient" with this handy quiz ... and if you find there are areas where you could use some work, take a look at these Horsesmouth articles (free registration required):

How to Become a Networking Superstar
The secret to generating new business from networking does not lie in how many business cards you hand out or how many times you deliver a perfect elevator pitch during a cocktail party.  The secret lies, quite simply, in how much you give.

10 Rules for Networking Etiquette
These days the art of networking is lost on many of your competitors. Put these strategies into practice and you'll increase your confidence, meet more contacts, and get more invitations.

Member Feedback: Getting the Most Out of Social Events
Your time is valuable, so it makes sense to get the most out of it when attending social functions. Some Horsesmouth users write in with savvy advice to help you do just that.

Network Effectively at Holiday Parties

As the holidays approach, so do all of the  parties and social events that go along with the season. These gatherings are wonderful places to solidify existing ties and make new connections that can lead both to direct business and to referrals.

Last week, in How to Make a Great Impression at Social Events in 60 Minutes or Less (free registration required), marketing expert Bruce Allen suggested eight ways to make your time at networking events and parties more efficient.  These included ideas such as arriving early, to give you a chance to interact with the organizers, and playing the host by offering to bring drinks or other refreshments to groups of people. (By the way, I've done that myself, and it works like a charm.  It's a great way to make a one-on-one connection too.  I've also found that the food tables, bar, and coffee stands are excellent places to strike up conversations, because they represent a shared experience, like talking about the weather.)

Horsesmouth members sent in some great tips of their own in response to this article.  Here are some party season networking ideas from your peers not only around North America, but around the world.

"One other thing I do is find out who actually organized the event—not the group that sponsored it, but the person who did the grunt work.  If they are at the event, be sure to specifically thank them.  If they aren't there, send them a quick thank you. They will probably share it with the powers that be." —L.P., Kalamazoo, Mich.

"At the start, when others start to arrive, I have found the most productive place to stand is at the end of the registration table, as guests will go there first before socialising and talking. From here they are looking for someone to 'rescue' them from standing alone, and it is easy to catch their eye and smile, start a conversation or draw them in." —G.T., New South Wales, Australia

"If you are at an event where most of the people are new, stand to the side and watch for the person or persons who everyone else goes up to speak with. Then get near that person in the food line and start a conversation."  —E.S., Palm Beach, Fla.

"Instead of trying to meet everyone, I make a point to have 3 VIP's in mind that I'm sure will be there.  I do my research/background on the three.  Then after all the glad-handing, I make a point to meet and converse a bit more in-depth with these three one-on-one, concentrating only on them.  This way, I'm not preoccupied by 'looking around' while talking to them (rude!) and it makes a bigger impression on them."           —D.P., Mattoon, Il.

Want more tips on how to accomplish more at parties than eating mystery hors d'oeuvres, and have more fun doing it?  Here are some other articles full of ideas (free registration required for all).

6 Tips for Networking at Holiday Parties
'Tis the season to mix and mingle.  Here's how you can connect with new prospects while you're enjoying a little holiday fun.

How to Turn Chit-Chat Into Real Business Opportunities 
To get beyond the small talk of endless networking events, you need a plan. Here are some conversation strategies that can spur new business without sounding pushy.

9 Secrets of a Consummate Networker
Independent publicist Erik Filkorn has an uncanny ability to befriend nearly everyone with whom he comes into contact—and, often as not, to land their business, too.   Find out how he does it.

How to Network at Social Events—Effectively!
It's not about how many people you meet at a social gathering. It's about helping others make connections. Here's how to do it.

How to Avoid Sub-Par Referrals from Other Professionals

We're continuing to revisit some of the great questions we received during our Referral Clinic and Blogathon.

Today's question comes from Chris, an advisor in San Diego, and will be answered by Ginita Wall, co-founder of the non-profit Women's Institute for Financial Education and author of eight books, including The ABCs of Divorce for Women. We asked Ginita to respond to this question because she has long experience in co-marketing and collaborating with other professionals to conduct seminars for women who are going through divorce.

Chris' question: "How do you position yourself to ask politely for referrals from another professional (attorney, CPA) so that you are not in the uncomfortable position of turning away non-ideal prospects (i.e. too small, too conservative) that are referred to you?"

Ginita's answer: It’s kind of like training a dog, where you reinforce good behavior, and reprimand bad behavior.

Here’s what I mean—when you get a referral that’s wonderfully appropriate, call the professional and thank them right away. Tell them exactly what there was about the client that fit you to a T, and how specifically you are going to be able to help the new client.  Then you might even send a little gift to the referral source, just to thank them again.

When you get a referral that isn’t appropriate, make sure that you have a list of advisors who work with smaller clients so you can refer them on. Then call your referral source, and tell them, "Thank you for sending the client.  He/she wasn’t quite right for me and I referred them to so and so." Then say, "I am always happy to be a resource to help your clients find what they need, but let me tell you about the type of client that fits my practice, just so you know for the future."

When you are asking for referrals from someone who has referred good clients to you before, begin by thanking them for the old referral, and telling them what a good job you’ve done for the client and how happy the client is. That will reinforce what kind of client you are looking for.

When asking for referrals from someone who has never referred before, tell a story about a perfect referral you got from another similar professional, so that the source can picture what kind of client to refer. You could even add, "Sometimes I get referrals of clients who are not quite right, for example [fill in why they aren’t the type you work with], but I am always able to find someone good for them to work with." That lets the referral source know the standards you set for yourself and that you intend to stick with those standards.

Here's a case study about how an advisor succeeded (free registration required) using Ginita Wall's Second Saturday divorce seminar format—and a discussion board where you can ask Ginita Wall questions about putting together a divorce seminar that gets results.

How an Advisor Generated $4 Million in Referrals in 3 Months

We had a very exciting event at Horsesmouth last week: our first-ever "Nitty-Gritty, Roll-Up-Your-Sleeves, Make-It-Stick, Million-Dollar Workshop."   One of the highlights was the collection of fabulous marketing ideas shared by the attendees—advisors from across the U.S. and Canada, including many veterans—during the course of the 2-day workshop.

One idea in particular caught my attention. James Crosson, an advisor from Fall River, Massachusetts who's been in the business for 23 years, formed his own networking group comprised of  professional centers of influence such as attorneys, a chiropractor, a CPA, a dentist, an electrician, a moving company, and others.  The one thing they all have in common—and this is key—is twenty years of experience or more.

In addition to meeting with his group once a month, James did something really different: he offered to list them all on his Web site, on a "Preferred Professionals" page.  He featured lengthy bios and photos for each (he says he used his own digital camera to take the pictures, because some of the photos they sent him were just atrocious!).  As you can see, James has devoted a lot of real estate on his own site to promoting his strategic allies.

The group also instituted a rule that everyone must provide referrals.  If you don't, you're eventually asked to leave. 

Unlike groups like BNI and the Chamber of Commerce, which James says he found less than inspiring, his group's results speak for themselves. He says that $50 million worth of referrals were exchanged among the members of his group in the first three months—$4 million of which were referrals to James himself.

Forming your own group, tailored to your personality, interests, and business, is often the best way to generate real referrals. Check out these stories (free registration required) about other advisors who have done it successfully:

Case Study: How to Start a Business Networking Group
Here’s how an advisor started his own business networking group, cultivated an association of lucrative contacts—and tripled his book in 18 months.

Case Study: Create Your Own Elite Dinner Club 
Dining with prominent members of the community turned into a networking sensation for this veteran advisor. See how a top producer parlayed a one-time $1,000 restaurant expense into a steady flow of million-dollar connections—and friendships.

More on Forming Relationships with Attorneys

We recently asked Tom Kane, president of Kane Consulting and author of the Legal Marketing Blog, to provide some insights into how advisors can form successful strategic alliances and referral relationships with lawyers. Tom answered two questions we received from advisors during our Referral Blog-a-thon.

Tom's first post addressed what to do when an attorney doesn't reciprocate the referrals you send his or her way.

Another advisor asked, "How can a financial advisor differentiate him/herself in the eyes of an attorney who is being courted by lots of advisors to form a strategic alliance?" 

Here's Tom's answer:

There really is no easy formula for establishing such a referral arrangement.  The relationship between a financial advisor and a lawyer is no different than any relationship between two professionals, whether it involves accountants, physicians, brokers, real estate agents and so forth.  It must be developed, and that takes time and work. And remuneration or quid pro quo for such an alliance isn't in the cards due to the bar's ethics rules.

So my advice is really straightforward.  First, establish a relationship.  Make contact, and get together to begin a dialogue about mutual interests.  Then, follow-up with meetings, telephone calls, send information of interest, and otherwise do what you are comfortable with in building on the relationship.  To borrow an analogy from the real estate field, the three critical factors in professional services marketing is contact, contact, contact.

Of course, sending potential clients to the attorney won't hurt either.  Do so without expecting an immediate pay back. 

Furthermore, you should be doing the kinds of best marketing practices that will expose you to lawyers (and others), such as:

• Speaking
• Writing
• Networking
• Entertaining
• Joining organizations that lawyers join that allow affiliate members

Being active and visible will open up opportunities to meet lawyers and others with whom to build relationships of mutual interest.

Remember that most other advisors will not bother to do real research into the needs and interests of attorneys before they make contact—so doing that research is one of the best ways to differentiate yourself. Tom's Legal Marketing Blog is a great place to start, as are the other legal blogs you'll find in Tom's "Fellow Bloggers" list (on the right-hand side of his blog).

Also check out these articles (free registration required) for more ideas about meeting and forming relationships with attorneys.

How to Work With Estate-Planning Attorneys 

Collaborative Divorce: A New Opportunity for Financial Advisors  (contains a section called "Getting started" that offers ideas applicable to most types of attorneys, not only family law specialists)

Estate Planning—Help Clients Find the Right Attorney

Create Strategic Alliances With Attorneys

How to Deal with an Attorney Who Won't Refer

Building relationships with attorneys is one of the more common referral and networking topics that advisors ask about. We've gotten an advisor's perspective. Now, in the spirit of going "straight to the horse's mouth," I've asked Tom Kane to provide a few insights on the issue from his side of the table.  Tom is president of Kane Consulting, author of the Legal Marketing Blog, and a former practicing attorney himself. He has generously offered to answer some questions that we received from advisors during our Referral Blog-a-thon.

This first question will sound all too familiar to many of you:

"What's an advisor to do with the situation where the advisor has sent numerous clients to an attorney, but hasn't received any in return; and the advisor's clients are very pleased with the lawyer's services?"

Here is Tom Kane's response.

Interesting dilemma!  You certainly want your clients to be well served.  But, quite frankly, there are other attorneys who could in all likelihood serve them just as well. 

A couple of questions:  Does the attorney know that you have referred that many cases? Has she thanked you for each one? (In my experience, believe it or not, lawyers don't always know or ask where referrals come from.)  Does she have a close personal relationship with another financial advisor? 

Bottom line: I would have a "sit down" with the lawyer and make it absolutely clear what you've done for her practice, and ask her advice on what your firm might do differently/better to get more of her referrals to cross your threshold.

You might ask some or all of the following questions:

• "What kinds of information would you need to have in order to recommend my services to your clients?"
• "Are there things about financial advisors and that you yourself are not aware of or do not feel comfortable enough to pass on to prospective clients?"
• "What other kinds of services or information do you think your clients would want to receive from financial advisors?"
• "Would you like to have written information about my services available to give clients?"
• "Are there any other questions you have that would make it easier for you to recommend my services to others?"

I don't  mean to sound like Dear Abby here, but I have a serious question as to whether any of the alleged referrals have taken place.  I can't think of any ethical rule that would prevent her from telling you whom she has suggested contact your firm.  Her hesitation in giving you the names of those she has "referred" brings to mind that great Southern expression,"that dog don't hunt."

If she isn't sharing the names because she's afraid you might hound (pardon the pun) them for business, you can assure her that you would not do so; but would only send them a letter and brochure mentioning that you know about the referral, and ask them to contact you, if you could ever be of service.  If the lawyer has problems with that, I have problems with the relationship.

Stay tuned for Tom's answer to another tough question: How would a financial adviser approach attorneys to establish a strategic alliance when they are being approached by a lot of financial advisors?

While you're waiting for Tom's response, here's food for thought—give some thought to how you can help the attorney, rather than the other way around.  One great starting point? Recommend some great resources to the attorney to help build his or her business... like Tom's Legal Marketing Blog!  Also take a look at his "Fellow Bloggers" list (on the right-hand side of the blog) of other excellent Web resources that lawyers might appreciate.

Building Strategic Referral Relationships with Attorneys--Where to Begin?

Today we're featuring a guest post by Mark Colgan, CFP, president of Colgan Capital in Pittsford, N.Y. Inspired by the challenges he faced as a young widower, Mark authored The Survivor Assistance Handbook and created Plan Your Legacy—an online service that helps individuals organize their affairs and express their final wishes. As a nationally-recognized end-of-life planning pioneer, Mark has considerable experience building strategic relationships with attorneys, and that is the topic of his post today.

Many advisors are interested in building strategic alliances with attorneys, but aren't sure how to begin, or with which attorneys they should seek partnerships in the first place.

Before beginning your search, it is important to identify whom you want to have as a client. Some advisors only want high-net-worth folks, while others are looking for people with specific needs. Once you have established your primary target audience, begin your search for an attorney that has the same interest.

To develop your list, consider the following search methods:

1. Good old yellow pages. Find every attorney in town.
2. Ask other professionals, like the accountants you work with.
3. Ask your clients who they use. Satisfied clients can be a good source of suggestions—but exercise caution. Clients are not always the best judge of a professional's work, especially in complex legal matters. You don't want a bad lawyer with a charming personality.
4. Search legal directories. Martindale-Hubbell publishes the best-known directory of attorneys in the United States. You can search by legal specialty and geographic location.
5. Call your local bar association. Go to the American Bar Association's website and click on your state. A list of lawyer referral sources will pop up. Focus on those referral sources that meet ABA standards. This means that they operate solely in the public interest and do not charge extra for the referral.
6. Check for area of specialization. Martindale-Hubbell identifies four specialties that relate to financial planning: trusts and estates, wills and probate, eldercare, and family law.

After you have created a refined list, call each attorney and invite them for lunch. Tell them that you are looking for a reputable attorney in their area of specialty to whom you can refer clients. When they hear about the opportunity to obtain new business and get a free lunch, chances are they'll want to meet with you.

Once you are sitting across from them, ask questions about whom they enjoy doing business with and why. Showing a genuine interest in them is the best way to develop rapport. At the end of your meeting, you will walk away with a good idea as to whether or not you have common interests and/or the kind of chemistry that will facilitate a mutually beneficial relationship.

Build your professional relationship on a solid foundation. Instead of playing the "one for you, one for me" game, give them a unique reason that they should send clients to you.  For instance, my practice specializes in end-of-life planning. and I commonly work with widows and widowers. I even have a state-of-the-art website dedicated to helping people plan their legacy.  I'm the only financial planner in the community that has this specialization—so when an attorney with whom I have a rapport has a client with parallel needs, I am sure to get the referral.

And when the referral is client-focused, everyone wins.

Read more about forming strategic alliances with attorneys in these Horsesmouth articles (free registration required):

Teaching Attorneys to Prospect for You
Attorneys don't always understand what investment planning really entails. Explain to them the standards of care involved and you may find yourself on the receiving end of some extraordinarily powerful referrals.

How to Build a Robust Centers-of-Influence Network
Your best client has given you the name of her accountant, estate planning attorney, and insurance professional. This is your chance to meet other professionals who care for the needs of the wealthy. After all, you already have common ground—you share a mutual client.

Collaborative Divorce: A New Opportunity for Financial Advisors
Advisors with a strong planning background can become central players in a more civilized divorce process that's gaining popularity. Those who do will also be tapping into an unexpectedly strong referral network.

9 Ways to Connect With Estate Attorneys
Building strong ties with estate-planning lawyers can yield an abundance of high-net-worth referrals. Here's how FAs initiate these key strategic relationships.

How to Escape from the Endless Networking Loop

Today I'm featuring some words of wisdom from Horsesmouth senior editor Nicole Coulter, written in response to a great networking question/challenge we received this week from Peter, a new Horsesmouth member. 

Peter wrote:

"My biggest challenge is converting prospects I meet on the golf course to clients. I moved my family (lived in same town 40 years) to [a town where I didn't know anybody] for lifestyle change 2 years ago. I moved into an affluent private country club. I'm a low single handicap and meet and play with many different groups of players and seem to be well liked. I get asked "what do you do" a lot, and "I'm a financial planner" falls out of my mouth. I believe I just wasted an opportunity to differentiate myself right there. I need help crafting a pitch that creates more curiosity or interest from prospects."

Nicole Coulter offers this response:

"Getting out of the endless networking loop is difficult for many advisors. From what you've described, it sounds like you need to develop an effective way to Get Beyond Small Talk—and Get Down to Business. I think there are valid ways to introduce financial subjects that people care about—even in casual settings such as a golf course.

Here are a couple of suggestions:

• One advisor this week told me when people ask him what he does for a living, he says, 'I reduce stress.' People are naturally curious to know how he does this. He proceeds to tell about his process of creating investment plans, and making sure all their financial bases are covered, etc. Think of a tangible or intangible benefit your services provide and work that into a compelling description of what you do for a living. Another example: 'I help busy people accumulate and distribute wealth.'
• Another advisor gets out of the endless networking loop by saying sincerely: 'You know what? I like you. We've known each other awhile, and I think it would make a lot of sense to work together. Why don't we sit down sometime and see what kind of plan we could come up with?' Bold, yes. But this advisor actually has quite a few mutual fund wholesalers as clients exactly through this strategy. And since they undoubtedly know hundreds of other advisors they could have turned to, it's a tribute to his effectiveness.

Of course, one of the best ways to win new business is by being genuinely interested in learning about the other person, asking salient questions about their life, family, business, etc., and offering ideas and suggestions when the opportunity presents itself. The key might be to go into the networking situation with an idea of what you want/need to know about people, and then keep a networking log so you remember facts about them, their children's situation, problems they might have mentioned about work, etc. Then bring up the subjects when you see them again: 'So, how is your son doing with the new baby? Did your company find a new insurance vendor? Did your brother sell his business?' Etc." It's long-term targeted approach."

The "network mapping" approach Nicole describes above is also at the heart of the Automatic Referrals process.  Try it—it really works.

And if you, like Peter, are searching for a better way to get attention when people ask what you do, here are some resources that may help (free registration required):

5 Steps to Your Own Red-Hot Elevator Statement
When you create a sizzling elevator statement, you motivate prospects to ask for more information and come to your office to start working with you. It's not easy—it'll take a day or so of hard work. But here are the step-by-step details on how to do it, plus seven sample statements to get you pointed in the right direction.

Brag Your Way to Your Next Prospect
Nobody likes a blowhard, but learning to talk about your accomplishments will help generate interest and get you more face time with potential clients. Advisors in a recent Horsesmouth discussion forum shared their own "brag-a-logues."

7 Steps to a Compelling Elevator Pitch
Want to get and keep prospects' attention?  The secret is saying just enough to hit a nerve—and not much more than that.

Some networking essentials

The Street.com recently featured an article from Entrepreneur magazine, "Upgrade Your Networking Mind-Set," that provides a nice, encapsulated reminder of some of the most important networking principles:

• The law of reciprocity or 'givers gain' approach. Don't worry so much about what you're getting out of your networking relationships, at least not early on. Focus exclusively on giving instead. You'll be amazed at the results.
• Network diversity. "Look for groups that don't target people just like you. In this way, you'll broaden the net you seek to cast for referrals." Bust out of your networking rut.
• Farming mentality. "For networking to yield extraordinary success, your mentality must be that of a farmer... It's a long, drawn-out process. There's no quick return."  Networking is a powerful method, but it takes real time, energy, and patience to do it right.

The Entrepreneur article contains a number of other useful tips for making your networking efforts more effective: seek to become visible and credible; understand and articulate your value in a targeted way; and sit down for one-on-ones with people you know superficially to explore possible deeper connections.

And to throw in my own two cents: Do try to think of networking as a process, not an activity.  The farming metaphor really is apt (something of which I'm acutely aware these days, as I'm finally harvesting the tomatoes, beans, and squash from my garden that I spent the last two months tending). You have to find the best location, cultivate the soil, plant the seeds, water and fertilize them, and be patient before any harvest will be possible. 

Don't rush it (why bother with unripe fruit?) and don't expect results too quickly.  Your efforts really will pay off in time.

Independence Day referral quiz

We're going to start celebrating early.  In honor of the long Independence day weekend, here's a little historical referral quiz (with apologies to our Canadian, Aussie, and other international readers).  Answers are at the bottom.

 

1. Since the beginning of time, familial bonds have played a big role in business and politics.  For example, the signatories to the Declaration of Independence included one pair of brothers and one pair of cousins. 

Name one of these pairs.

2. In 1727, Benjamin Franklin founded an intellectual and social group called the Junto.  This group, which eventually morphed into the American Philosophical Society, was the precursor for contemporary networking groups like Business Networking International and LeTip. 

In which American city (where Franklin lived until his mid-50s) did the Junto operate?

3. Although he was just a simple tradesman, Paul Revere will be forever remembered as one America's greatest heroes--because he involved himself in the community and politics, and volunteered for tasks that others didn't want. As a result, he was entrusted with the job of warning his countrymen about the imminent British attack at Lexington. 

What was the date of that historic midnight ride?

ANSWERS:

1. Richard Henry Lee and Francis Lightfoot Lee (brothers); Sam Adams and John Adams (cousins)

2. Philadelphia, Pennsylvania

3. April 18, 1775

Happy 4th of July! 

10 practical ways to expand your network

I wrote on Monday about how important it is to have a diverse social network.  That's easy to say—but how do you go about it?

I'm amazed how many interesting and diverse people I've met over the years on airplanes, in airport waiting rooms, even on line at the supermarket—the key has always been just making the choice to say hello or strike up a conversation, rather than shoving my nose in a book.

As for more formal, organized ways to broaden your network, here are ten ideas to get you started:

1. Attend events sponsored by technology councils or associations.
2. Attend your firm's research conferences.
3. Call everyone whose name appears on an affinity publication over the course of a year. (The publication should pique your personal interest.)
4. Volunteer for a local fundraising project.
5. Volunteer for a national fundraising project.
6. Work for a political candidate.
7. Become an officer or director of a social or sporting club.
8. Join a chamber of commerce and regularly attend meetings.
9. Take plant tours sponsored by local organizations.
10. Attend industry gatherings like Comdex.

Want 47 more? 

57 Ways to Expand Your Social Network (free registration required)
Still falling back on that same old social network?  Use these 57 time-tested activities to broaden your contacts and increase the flow of knowledge necessary to build your business.

The ABCs of Automatic Referrals: H is for Honor

One of the biggest misconceptions I hear from advisors is the idea that asking for referrals will ruin their reputation or destroy their professional image--that it is somehow dishonorable.  Here's what a few advisors wrote in our recent call for referral challenges:

"I've been turned off in the past when people have asked me for referrals and sure don't want to come across that way to others. That's mainly why I don't specifically ask for referrals. How can I ask for referrals and at the same time not be pushy or come across as desperate/non-professional? " Andy, Independent advisor, Dallas, Texas

"It's very difficult to ask my best clients for referrals as I do not want to sound strapped for business. How can I phrase a referral request that sounds professional?"  B.F., regional advisor, Philadelphia, Pennsylvania

"I have been in the business for many years. I recently identified seven clients that I would like to clone. We have a great relationship and I would like their help. How can I ask them for referrals without sounding like a beggar or a pushy salesperson?"  William, independent advisor, Minneapolis, Minnesota

In fact, it's not the act of asking that causes people to sound desperate or unprofessional—it's the WAY they ask. 

If you drop misty-eyed to your knees in front of your client, clutch his hand and plead that you'll be bankrupt within 24 hours if he doesn't cough up some referrals, then yes, you may leave a bad impression.

But getting back to reality, if you position your requests the way you should anyway (for general effectiveness), you will preserve honor and then some.  Because you're going to position yourself not as a desperate salesperson, but as the capable expert you are, someone who has helped your client and recognizes an opportunity to help someone else the client knows.  "Wow, it sounds from what you've said like your brother may not be getting the tax protection he needs.  I've helped a number of clients with this kind of problem. Shall we have lunch sometime, the three of us?  I think I can carve out some time next week..."

Or, you can position yourself as a prominent member of the community who would like to meet another prominent community member whom your client knows.  "You know, Ruth, I've always wanted to meet Roxanne.  She's on the symphony board, and I'm on the museum board, and I've always thought it might make sense for our two groups to put on a fundraiser together.  Do you suppose you could introduce us?"

You can even ask clients for help outright, as in William's question above, while preserving honor and professionalism.  Imagine you've just had a new house built by the best contractor in town, and he comes to you and says, "Mr. Smith, I've built houses for some of the top businesspeople in town, but you're the first financial advisor I've worked for, and that's actually a market I've been wanting to cultivate. Can I take you out for a round of golf and lunch and pick your brain about the best way to reach other advisors?" 

That's not a guy who's desperate for clients. That's a successful businessman who is curious to learn about a new market and sees you as the expert.  In fact, don't you feel a bit flattered that he wants your advice?  Wouldn't you be happy to help (assuming of course that you're pleased with his work on your new home)?

But here's the real secret to preserving honor when asking for referrals: you have to position yourself this way in your own mind before you can do it with clients.  Believe it: you ARE a capable professional and an expert who helps others.  You ARE a prominent member of the community who deserves to meet other important people.  Asking for advice and counsel doesn't diminish you or make you look unprofessional--to the contrary, it helps you look smart and open-minded and it makes other people feel good!

If you're finding any of this difficult, it would be a good idea to work on your professional self-image--and a good place to start is to take a step back and look at yourself as your best clients see you (or, if you have no clients yet, as they WILL see you someday).  The "What I Do for my Clients" worksheet in the Automatic Referrals report may help. 

If you still can't honestly see yourself in a positive light when you look through your clients' eyes, you may need to rethink the way you do business.

Why you need a diverse network

I just happened across a post by Ron McDaniel of Buzzoodle Marketing about "networking diversity." Ron writes:

"How deep is your network? How many people do you know who are very different from you? A diverse network is going to be more interesting and more powerful, because it gives you access to more varied groups."

He goes on to suggest auditing the top 50 people in your network to see how diverse you are.

Ron's point resonates with the writings of Horsesmouth co-founder Bill Nicklin.  For those who don't know him, Bill is a 35-year veteran who has been a multi-million-dollar producer for at least 20 of those years and whose AUM is now bigger than the GDP of at least a few small countries.  He's built much of that wealth thanks to his ability to cultivate relationships with a truly remarkable range of people, from farmers to high-tech executives.  In two different articles, Bill writes:

"If there is one prevalent tendency among financial advisors, it's to stay within their comfort zone. I have seen FAs talk to the same clients over and over, day after day, in what becomes a social ritual. These are the people who provide referrals from a small pool of extended friends. Those same FAs lunch with their closest friends and associates. They take the same clients out to dinner (check out your credit card receipts). If they come up with an investment idea, they try it out on their "best friend" clients first. Rarely, if ever, do these FAs prospect for new business using an original thought. They stay within their social walled garden."

"When looking for new information, opportunities, and relationships, weak ties tend to be more important than strong ties because the cluster of people knit tightly around you at your school, sports club, or church all occupy the same world that you do. Casual acquaintances, on the other hand, are much more likely to know people, and have information, that you don't. This is why the most important people in business development, just as in job hunting, are those who aren't closest to you. The greater the number of peripheral acquaintances, the greater the likelihood of creating a robust network of prospects, clients, and sources of knowledge."

Whatever your usual networking rut is, bust out once in a while.  Find a new watering hole.  Attend a conference focused on some industry that interests you where you currently don't know a soul.  It may do wonders for your business.

Read more (free registration required):

Jump the Walls of Your Comfort Zone
When you venture outside the boundaries of comfortable relationships, you'll open new doors of opportunity and diversify your business platform. Part 1 of a five-part series explores the safety of our "walled gardens" and offers new ways of venturing outside your comfortable confines.

Prospecting: The Strength of Weak Ties
Though it sounds counterintuitive, your best friends are rarely your strongest links to new business—you already know what they know. But casual acquaintances have much to offer.

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The ABCs of Automatic Referrals: G is for "Give to Get"

Whether you're trying to establish a relationship with someone you met at a cocktail party or get referrals from your clients, there are a few basic principles you must master in order to be successful. 

Here they are:

1. Give
2. Give
3. Give
4. Give...

Yup, you've got it. The key to success is a mindset of creating abundance for others.  How can you help your clients' friends and family members?  How can you help that accountant or lawyer you just met? How can you help the contractor who just did the remodel on your house, or the funeral home director down the street?

In my last post, I referred to an article by Jeffrey Gitomer in which he listed five and a half principles for making yourself referable. The "half" was a subset of this "give to get" principle: give the OTHER person a referral first.  This doesn't include just CPAs and attorneys you're hoping will refer back to you. You can also do it with your clients. 

There's the one-on-one method: if your client is a professional or business owner, send some business her way.  If he is very active in a non-profit, volunteer some time or offer to do some pro-bono planning work for them.  Help his college-age kid find a summer job or internship.  The list of opportunities to give in this way is as long as your client list.

Or, you can take a broader approach and make yourself a resource where clients know they can always go to find a referral for just about anything.  That's what Dawn Janes does. Dawn is an insurance agent I interviewed for an article on sharing referrals with other professionals (free registration required) a few years back. She has an entire PAGE on her Web site devoted to referrals for her clients, from hair stylists to estate planning attorneys to custom cabinet makers—and yes, financial advisors.  She meets with all of these professionals and vets them before they make it to her Web site.

As it turns out, these referrals have not only won her lots of points with clients—they've also benefited her in terms of bringing in referrals from the other professionals listed on her page. In fact, she notes, "My largest client is a result of networking with a referral resource." 

There's nothing like telling people you'd like to get to know them better and perhaps refer business their way to rev up your networking.

Believe it in your bones: when you give, you get.  Ironically, the less you concern yourself with the getting, the more wealth and success will come your way.  No matter how much you're struggling to get your own business off the ground, focus on lifting others up as you climb.  Let that be the polestar that guides your professional life.

How to Get My CPA Network to Send Me More Referrals?

Welcome to Day 19 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 Matt P., a regional rep from Waco, Texas. Nicely done, Matt!

Matt's question will be answered by Katherine Vessenes, JD, CFP®, RFC. Katherine is president of Vestment Advisors and the country's leading authority on building a multimillion-dollar practice.

Question: "I've hosted a CPA continuing education credits for my network of 8-10 CPAs once a month for the past year. I feed them and give them 3 hours of credit each time. I've received just one referral and a few lunches because of it. How do I push for more referrals?"

Katherine Vessenes' answer: We have done a lot of consulting assignments with CPAs and financial planners and I think there are a number of ways you can get your CPAs to do the right thing.

Here is an idea on how to tactfully teach your CPAs good manners--to repay you with referrals. I would invite each one out to breakfast or lunch separately. Call them and tell them you could use some advice about your business and the CE programs you have been running. Eventually, over lunch, the conversation will go like this:

"Don, you know I have provided you and some of my top CPA affiliates with 12 free CE classes over the last year. Can you give me some feedback? How did you like them?" (Pause for answer. This is important because if they didn't really like your programs, it is unlikely they will send you business. On the other hand, if they are very happy with them, you have set the stage for getting referrals.)

"Is there anything I can do to make them better?" (Pause for answer. This shows how serious you are about meeting their needs.) 

There is a really good chance they are only going to say positive things about your program or even thank you for doing them. You want a warm, fuzzy response here.

Then go in for the kill: "Don--I am really confused. Why do you think I have been providing these programs?"

You want them to connect the dots themselves, if possible, and figure out what your motivation is. If they don't do a good job of articulating it, say:

"That's right. I carefully selected a group of top CPAs and then went to a great deal of expense and time to create outstanding CE for them. Now, my motivation has been no secret--I was hoping they would like what I was doing so much and have so much confidence in me, they would refer me some clients. Does that make sense?"

Again you are looking for feedback.

Then say: "Well, the thing that is confusing to me is this: if I am providing you great service and you like my work, over the last year, why haven't I gotten more referrals? I have only received one referral from the entire group. Why do you think that is?" (I know this looks clumsy on paper--but it will sound OK when spoken.  It is important to start with the reminder that they like what you are doing and then end with the question: why aren't I getting more referrals?)

If they give you some positive feedback--like they would like to send you business, but they don't have any clients that you would be a good fit for--then dive in a little deeper and say: "Would it help you if I explained in greater detail the kind of client I like to help?" Then explain very specifically the kind of client you like to work with and your differentiation. Draw them a picture they can relate to.

From here you should go into some specific ideas on how to do the referrals. This group likes specificity--so don't skip over the details.

By the time you have this conversation with all 10 attendees, they will clearly understand that you are looking for referrals and you will have given them some scripts or other tools to help them with that process.

Another idea, if you don't want to have 10 separate luncheons:  Call all 10 members and ask them if they would do you the favor by coming to a lunch and being your one-time advisory board. You could use their advice about your business and you would appreciate their feedback. I think most would be happy to help you out.

At the luncheon, in front of the entire group, you would have a similar presentation, only to all of them.  I wouldn't try to make them feel guilty--just to have them give you some good ideas on how to increase referrals.

So your script might go like this:

"We have really gotten to know each other over the last year during my CE classes. How did you like them? Is there anything I could do better?" (Get feedback)

"Great--thanks for coming today. I have a problem and I could really use your advice. I build my business almost entirely from referrals. It is not going so well now as I had hoped. Do you have any ideas on how I could increase my referrals?"

Then shut up.

What you want them to do is brainstorm your marketing plan for you. Be sure to ask for specific suggestions.

If things start to lag, here are some other questions you can put to the group:

• "If you were me, how would you market for referrals?"
• "What can I do to be more attractive to my referrers/centers of influence?"
• "What kind of financial services are your clients looking for?"
• "Do you have someone else that you refer this business?"
• "How can I better position myself to appeal to your clients?"

If you do this properly, they will give you everything you need to create a great referral program--and they will have gotten the message that you are expecting referrals from them.

To reinforce this message, there are a few other things you can do:

After the breakfast or group lunch, send each CPA a personal, handwritten note on your best paper. The message will go something like this:

Dear Jane,

Thanks for your feedback at my advisory board luncheon. It was very helpful. In thinking about it afterwards, it occurred to me that you might have more confidence in me if you could personally see how I would treat your clients.

How about if I give you a free (no-obligation) financial plan or maybe a tour of our offices? That way you can see for yourself how we work and our level of service. I will be calling you soon to set something up, if this would be of interest to you. In the meantime, thank you for your referrals and your support. 

Katherine

Hopefully by your next CE class you will have gotten at least one referral. Before you start your class or over lunch, make a big deal out of it. Honor that referrer in front of the group. It would go like this:

"Attention everyone! Today I want to honor Frank--he sent me two clients last month! (Round of applause, yeah, rah rah,etc.) Please accept my thank you," and then, in front of the group, give him a present. This could be a bottle of wine, a nice book, tickets to the theater--something special. You will find if you do this at every meeting, everyone will want the prize and they will all get the message--you are the person to refer business to.

If you don't get some referrals after this, you are clearly going after the wrong group!

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

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 an