Add a Context of Value to Referral Event Follow-Up

Hosting an event for clients and their friends, no matter how small the affair, can be an arduous task. There are reservations to make, invitations to send, and not to mention the time and effort taken up by the event itself! But along with throwing an event that is fun for all those involved, it’s important not to neglect an often marginalized part of the process that is absolutely crucial for turning attendees into new clients: the follow-up. It’s during the follow-up that you begin to bring up business, but this can be awkward if you don’t know how to handle it.

During a recent teleseminar for Horsesmouth members called, “Client Events That Work,” Horsesmouth Senior Editor Nicole Coulter fielded questions. One, from an advisor named Shawn in Bethlehem, PA, was focused on the challenge of follow-up: “We have a client event scheduled for two weeks from now. It’s a baseball game. Clients are bringing friends. How do we follow-up with these friends in a way that is professional but not pushy?”

Nicole answered with a creative idea that adds value to the follow-up process and creates context:

“Baseball is an awesome idea, Shawn. I’m a San Diego Padres fan, myself. First off, I would recommend that you have someone there that could take digital photos. Maybe that’s you. But have a checklist of attendees to make sure they get nice portraits of each guest. And if they came together, make sure they get their picture taken together. And you can ask them for their email to send them their picture after the game. Or if you really want to impress them, put it in a frame that has the logo of their team.

We’ve seen this done. Other advisors will put pictures of their client events up on their websites and invite guests to check out the pictures. Or you can upload the pictures to Flickr.com and do the same thing. Send an email out with a link. This is an easy way to initiate follow-up.” 

Using a system like the photo-idea above, you can reach out to event attendees without the awkwardness or pretentiousness of coming from nowhere. Give it a try the next time you get clients and their friends together.

If the topic of referral/client events interests you and you'd like to know more, make sure to check out these articles on the topic (free registration required):

How to Turn a Client Event Into a Referral Event
In a recent Horsesmouth discussion forum, Michael Brizz dished up tips on how to throw a client event that will also attract high-quality referrals.

10 Tips for a Grand-Slam Client Event--Take Them Out to the Ballgame
Buy me some peanuts and Cracker Jacks--it's opening weekend in Major League baseball. Here's how financial advisors make their best pitches with the national pastime.

9 Steps to a Blockbuster Client Appreciation Event
Hosting a client appreciation event is an effective way to boost client morale and prospect, but an ill-conceived or poorly executed event can do more harm than good. Learn how to throw a bash that will have clients raving about it—and you.

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.

Bill Cates with "Nine Tips for Visiting Clients"

Today, we're featuring a guest post from Bill Cates of Referral Coach International. Bill works with financial professionals who want to build their practices by fully mastering the referral process and tapping into the lifetime value of their clients. 

Bill featured this article in his terrific "Referral Minute" e-newsletter.  I liked it so much, I asked his permission to share it with you... and he very generously agreed.  It seems that after Bill ran a piece about 7 simple ways to make in-office visits special for prospects and clients, many of his subscribers wrote to tell him that they couldn't really apply those ideas because they typically leave their offices to visit clients on their own turf. 

So Bill came up with the following list of ways to make those types of visits more special—which he notes is more challenging because you don't have any control over your environment. He also points out that several of these ideas were inspired by his readers.

1. Bring a staff member with you. As you already know, when people connect in person, their phone conversations are usually more cordial and more productive. If you talk about your "team" or "your support back at the office" give your clients a chance to meet them from time to time.

2. Pay attention. What I mean by this is pay attention to what's happening in their personal lives—health issues, children, parents, etc. Make a note to yourself. The next time you visit with them (or talk to them on the phone) ask them about this. "How is your mother doing after her operation?"

3. Bring them a treat to eat. You don't have to have clients come to your office to bring them a treat. I know one advisor whose wife bakes cakes for his clients. While you don't have to put your spouse to work for you, you can stop at a bakery and bring a treat. If they have a sweet tooth, bring something sweet. Maybe you know they like premium coffee. Bring them a bag of premium grounds. Our printing salesperson used to bring us fresh baked cookies. We always welcomed him.

4. Bring them a little gift. I remember early in my relationship with my current advisor, he brought me a Lexus coffee mug. I still use it. Come to think of it, he hasn't brought me anything lately! If your client or prospect has a favorite sports team, bring a little trinket. It's not the expense that impresses them, it's the thoughtfulness. When you find yourself browsing in stores, keep an eye out for little things you can pick up for your clients.

5. Get to them through their children. If your clients have young children, bring a little trinket for them (always have enough and make them safe and age appropriate). Just another way to show you care.

6. Bribe their pets. Many people consider their pets to be a member of the family. Bring a treat for their pet (premium quality only) or a trinket (breed specific) for them.

7. Bring them lunch. Very busy clients will appreciate this one. Make it a really special lunch. Find a high-level deli or nice restaurant with carryout.

8. Make a reminder phone call. Clients always appreciate a confirmation phone call a day or two before the appointment. Sometimes it reminds them and sometimes it reassures them that you haven't forgotten about your meeting.

9. Bring a maid with you. I was talking about this article with my staff and my Marketing Director said, "Bring a maid and have them clean my house while we meet!" While I doubt you would do this, it was too funny - just had to share it. For that matter, bring your 16 year old son and have them wash their car. The possibilities are endless (and quite silly).

Just as I was finishing this issue, I received an email from Marquise White who had some good ideas regarding last week's theme of "wow" office visits—with a fun perspective. I thought I'd pass his message along to you. Thanks, Marquise.

"I loved the most recent list of 'office wows.' It really is about the little things. You'd be surprised how far these simple things go to making the client feel special: $7 water carafe and nice glasses (with some weight to them); a nice service tray; and some real (not paper) napkins. We need to pretend that our clients are our newest love interest and DATE them. Get to know them, like if we wanted to marry them (at least be with them for 10 or 20 years)."

Here are some other ideas (free registration required) for making yourself memorable with clients and prospects:

10 Tips for Distinctive Client Service
Distinctive client service separates you from everyone else who talks about professionalism but doesn't deliver on it. Take action with these 10 tips from a recognized, distinctive financial professional. 

Case Study: How an FA Doubled Revenues by Systematizing Client Service 
After letting client contact slide for years, this veteran made the commitment to more consistent communication—and in the process saw a huge surge in his take-home pay.

Set New Standards for Service, Part 1
Inspire loyalty by developing creative ways of providing top-quality service to your clients.

"Burn the Boats" to Achieve Referral Success

I recently saw a blog post by John Jantsch of Duct Tape Marketing that takes one minute to read, but can literally transform your business and even your life.

Here's the core of it (click here to read the rest):

Sometimes knowing and doing have a hard time intersecting. I learned years ago one of the best ways to get something done is to give myself no choice.

There is a fable that tells about a captain coming ashore to conquer a new land and finding his forces outnumbered 10-1. Seeing this a sergeant asked what they should do, to which the captain replied, "burn the boats."

For example, he says, if you want to do more public speaking, get yourself booked for a speech.  If you want to get in shape, enter an upcoming 10K.

So what are some referral-related "boats" you can burn?  Here are a few ideas:

• Schedule a referral event and start getting the invitations ready.
• Book an evening at an exclusive restaurant for a client advisory board meeting.  Then, you can actually set up the client advisory board (free registration required)!
• Make 5 lunch reservations for two over the next 30 days.  Now find top clients to fill those slots, and then figure out who they know so you can ask for introductions over lunch.
• Really want to challenge yourself?  Make those reservations for three. Now you need to ask the clients to invite the people you want to meet.
• Get up from your desk right now, walk into your branch manager's office, and tell him or her that you are going to commit to getting at least 2 referrals per month, starting this month. (Don't have a manager? Call a mentor or close friend whose opinion of you matters, and commit to that person.)
• Book a lovely vacation for yourself and your spouse for a year from now, with a nonrefundable deposit. This will be your reward for meeting your referral goals and increasing your production.  If you don't meet the goals, you're going to eat the deposit!

As Jantsch writes, it's funny how your priorities can change when you have no choice. Stop choosing NOT to get referrals. Instead, choose success—even if you have to force it on yourself.

Want More Referrals? Get a Niche.

There is a long, long list of reasons that you should consider narrowing your focus and choosing one or more niche markets to serve. On just about every measure you can think of, from production and assets to pure satisfaction and enjoyment of the job, Horsesmouth's research has found that niche advisors are more successful than generalists.  But for our purposes, there is one especially compelling reason to "niche up": you're quite likely to get more referrals.

In their survey of more than 2,100 advisors, Horsesmouth asked the question, "Are you getting more referrals since you started working in your niche?"  Check out this chart.

   

It's hard to argue with those results.

Read The Advisor N-Factor, a Horsesmouth special report, and learn more about why niche marketing is so powerful and how you can start marketing to your perfect niche—and rev up your referral results along the way.

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.

How Do I Get Clients to Refer Friends to My Seminars?

Marc, an advisor in Durham, North Carolina, writes:

I conduct seminars on a monthly basis with most people coming from advertising in a local paper. I have been conducting these seminars for over a year and have had well over 200 people come through. I know that people get value but I very rarely get them referring their friend or colleagues to the next one. (I put everyone on my email newsletter list). How can I get more people referred to me and my seminars?

We've asked Ginita Wall, CPA, CFP® and CDFA of San Diego, California to answer Marc's question. 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.

Let me see, how can I put this politely?  Financial seminars are perceived to be boring, even by those who attend them. That’s why they don’t refer their friends.

How to get around this? Offer something wonderful for referrals, or offer something exciting in addition to the seminar. For example, we once did a seminar with a local department store where they provided a personal shopper to show how ten articles of clothing could create a number of different looks, and we showed how to construct a variety of portfolios with the same number of financial products. And of course, we presented first, so the audience couldn’t just see the fashion show and leave.

You could offer a free something to the person who referred the most number of people to your seminars. Or give out movie passes at the seminars, so that people could win them by being there. Anything to cause excitement and get people to come back and bring their friends.

And that brings me to the final point. If someone refers you to a seminar, you probably won’t go. But if someone invites you to come with them, you probably will. So it would help if you offered a variety of seminars, so that people would want to come back the next month. That’s the first step in getting them to bring their friends.

Here are more ideas to help you put on seminars and other events that will inspire clients to bring their friends along (free registration required):

How to Turn a Client Event Into a Referral Event
In a recent Horsesmouth discussion forum, Michael Brizz dished up tips on how to throw a client event that will also attract high-quality referrals.

The ABCs of Client Education Workshops   
Tired of the same old seminars that don't yield much business? Client education workshops strengthen relationships with your best clients, often for a far lower cost than a typical seminar. 

4 Steps to Filling Seats at Your Next Client Event
Top-performing advisors follow this sophisticated, multi-step process in order to ensure successful client and prospect events. Print out this plan now so you can follow it during your next client or prospect campaign.

7 Ways a Unique Seminar Location Boosts Business
You wouldn't jump at the chance to spend an hour in a hotel conference room—why should your prospects?

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.

Conquer Your Self-Limiting Thoughts and Get More Referrals in 2007

I have heard only a handful of speeches in the course of my life that actually transformed me in some lasting way. Six years ago, I heard one of those speeches. I was attending a performance improvement conference in San Francisco where the featured speaker was Debra Benton, author of a variety of books including How to Think Like a CEO and How to Act Like a CEO. Benton has studied and interviewed hundreds of chief executives and found that they share a number of key traits.  She addressed one specifically in her keynote that I found profoundly important.

If you want to think and act like a CEO, Benton explained, look around you, see what everyone else is doing, and then DON'T do that.  Do the opposite.

She illustrated this principle in a very immediate way that I was fortunate enough to experience firsthand. At the end of the keynote, she held up a copy of her latest book, and said, "This book is for someone in this audience.  I'm waiting." 

All of the 1,000-plus people in the room just sat there for a moment, looking around with confused expressions, waiting for something to happen.  After about 20 seconds, a few people somewhat tentatively raised their hands.  Benton smiled and said, "That's not it." Then one or two folks stood up and waved at the podium.  Benton just stood there, still holding the book, and shook her head.

That's when the light bulb went off in my head. I looked around at everyone else to see what they were doing.   What they were doing was sitting, doing nothing, waiting.  So I applied the lesson I had just learned in the keynote. I did the opposite. I stood up, squeezed past the row of other attendees and made my way to the aisle. Then I walked up to the podium with my hand outstretched toward Ms. Benton and the book. 

Out of a room of 1,000 people, I was the only one to take that risk—the risk that I might make a fool of myself.  And guess who went home with the book?

I have carried that experience and that lesson with me to this day.  I tell you about it now because I was reminded of it by Robert Middleton's More Clients blog entry today, "Two Huge Things." The bottom line of Robert's post: go into the new year with big intentions—and strip yourself of the mental limitations that are holding you back.  He writes:

"What beliefs are you addicted to that are holding you back from realizing your intentions? As long as you remain attached to them, they will shape your current reality as they always have.

• Are they about how much money you can earn?
• Are they about how successful you can be?
• Are they about your capability as a marketer?
• Are they about the difference you can ultimately make?

And what if those beliefs weren't really true at all? Take a few minutes to seriously question them."

That day six years ago in a San Francisco hotel ballroom , as I walked up to that podium to claim my prize, I realized how powerful self-imposed limitations can be, and simultaneously how easy it can be to jettison them—and what you can accomplish if you do.  How many conversations have I failed to initiate; how many opportunities have I failed to leverage; how many ideas have I failed to try in my life... all because of self-limiting thoughts?  How many referrals have you NOT gotten because of YOUR self-limiting thoughts?

You want more referrals, or you would not be reading these words today.  The new year is here.  Now is your chance. Resolve to map out your intentions—and more importantly, become aware of your own limiting beliefs, and work consciously against them.

There is a Dale Carnegie quote that I always use to close my presentations on conquering referral anxiety:

Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.

Read Robert's post. Read the articles below (free registration required).  Then make 2007 a truly transformative year in your business and your life. 

Happy New Year!

How to Wipe Out Self-Limiting Thinking in 5 Steps
Your greatest barrier to success is not the market or your competition. It's your own mind. Find out today how to recognize and overcome self-limiting thoughts that prevent you from reaching your full potential.

Your Productivity Starts With Positive Thinking
Try these strategies for controlling negative thoughts and outbursts during difficult situations. You'll find yourself happier, more productive, and better able to maintain good relationships.

Turn Around Your Negative Thinking in 3 Steps
Your future success depends on your ability to meet adversity with renewed energy and optimism. Remember, your thoughts influence your feelings and actions. Follow this method for staying upbeat in the face of rejection.

Do You Have a Referral Personality?

In his Referral Minute newsletter a while back, Bill Cates asked this important question: "Do you have a referral personality?" 

By this, Cates explains, he means "Do you behave in a way with your clients that makes them want to refer you?"  He says that many advisors he meets are either too meek or too overbearing—and sadly, they have no idea that they're making a bad impression on their clients.

Cates offers the following checklist of personality traits and behaviors to consider. Since most of us can't judge ourselves objectively on this kind of thing, he suggests running the checklist by some trusted friends and colleagues and letting them rate you (1 is low and 5 is high):

         Trait                                 Rating

1. Positive Attitude
2. Pleasing Tone of Voice
3. Strong Listener
4. Proper Volume of Voice
5. Proper Eye Contact
6. Undistracted
7. Unrushed
8. Client Centered
9. Appropriate Wardrobe

If you discover that you're lacking in any of these areas, check out the Sharpen Skills area on Horsesmouth, where you'll find lots of useful resources to help you improve.  For example (free registration required):

9 Ways to Stop Rudeness From Hurting Your Business

Suit Up! Classic Business Attire Is Back

Energize Your Speaking Style

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.

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.

Referrals: Are You Worthy?

Last week I told you about a great marketing article by Robert Middleton on the topic of what we at Horsesmouth call "sales shame" (free registration requred) While reading comments on the article submitted by Robert's readers, I came across one that contains a great teaching point.

A reader named Victoria said that as she read Robert's article,

"I realized that the only times I have disliked and demonized selling have been when I had no confidence in the value of what I was offering. From now on, when I feel reluctance to sell, I will look a lot more closely at what I am offering for sale!"

This is a great point.  When you do a gut check, you may find that you feel great about your knowledge and service and just have negative feelings about asking for referrals... or, you may find that you actually don't feel very good about yourself professionally. 

If that's the case, give the matter some real, honest, objective thought.  Are you selling yourself short?  Are you better than you're giving yourself credit for? Or do you have some bona fide deficits you need to address in your knowledge base, your client service approach, or in some other key area of your practice? 

As Victoria points out, it's very unpleasant to sell when you don't feel good about what you're selling... and as an advisor, that "product" is really you and your services.  If you don't think the product is up to snuff, it's time to make the necessary improvements. 

Give yourself a "product" you can feel proud of, and you'll find that asking for referrals (and prospecting in general) will get a whole lot easier.

Get Over Your Sales Shame to Get More Referrals

If you read this blog regularly, you know by now that I'm a big fan of marketing expert and Horsesmouth contributor Robert Middleton.  His tactical marketing advice is always spot on... but I REALLY like Robert's stuff because he understands so much of the psychology that underlies marketing success and failure. In particular, he is always (albeit gently) riding his readers, pushing them to be more aware of their own negative or fearful attitudes and self-talk. 

One of Robert's recent blog entries, entitled "Ruffling Some Feathers," identifies a problem with which I'm all too familiar—I hear it day in and day out from advisors struggling with referrals.

Robert writes:

...In the past week I lost a few hundred subscribers.

Why? Because I committed the unpardonable sin (in the eyes of some subscribers) of trying to actually sell them something!

When I do a special promotion (which I did two weeks ago), and send out a few follow-up emails, a lot of people unsubscribe. I even get comments from people who are infuriated that I would stoop so low.

"You should just give away free information and then let people decide for themselves if they want to buy something from you." is often the tone of these emails. Or, "If you didn't promote anything in your eZine, we'd like it so much better."

...Inevitably, those who recoil when someone tries to sell them something are, without exception, people who are afraid to sell themselves. Selling is characterized as "beneath their dignity."

We at Horsesmouth call this attitude "sales shame," (free registration required)—and if it doesn't kill your career outright, it will most certainly give you ulcers.

Robert Middleton continues:

You'd think that people who went into business for themselves would be somewhat beyond this view of selling. Of course, many are. They understand that selling is simply an opportunity to share the value they offer to the world.

They realize the upside of sharing this value greatly outweighs any possible rejection they might experience.

Robert has captured the essence of a mindset that is key to transforming your referral marketing. I boil it down to a simple phrase: "Always sell in the service of others."

You may be thinking, "Hey, I already do that.  My clients are always first and foremost in my mind." 

No doubt that's true in the realm of investment recommendations, product sales, and client service. But do you typically think of REFERRALS as being about the client?  Aren't referrals about YOU?  Helping YOU get more clients and assets?  Building YOUR business? 

Actually, no.  And that's the mindset shift I'm talking about.  Referrals (and indeed, prospecting in general) are not about scrounging for new business.  They're about offering your guidance and expertise to the people your clients care about.

We call this a "client-centered mindset." It means that your primary motivation is relieving clients' pain and helping them achieve their dreams.  If you always sell in the service of others—and ask for referrals in that spirit—you'll find that much of your referral anxiety will melt away.  And while that alone won't solve all of your problems, it'll take you a long way.

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.

How do I Get Clients to Refer "Up"?

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

Ginita Wall will be responding to today's question, which was sent in by Caragh, an advisor in Syracuse. 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.

Caragh's question: My client has quite a few friends and associates who are much wealthier than her, but she is more comfortable introducing us to people closer to her worth level. How do we get her comfortable with referring us up?

Ginita Wall's answer: Well, let’s look at it from her perspective. "Who am I to give advice to people who are more successful than I am?" she is probably thinking. And in a way, she’s right. So the trick is to move it from a professional referral plane to a more social one.

Here’s an idea: When her birthday rolls around, tell her you’d be happy to host a celebratory luncheon in her honor at a local eatery for her and five of her friends. And you might even suggest some names of her friends (if you know them) that include the wealthier ones, as well as those nearer her income level. You are looking for an introduction, and a social context is great.

Here are some other social events that have been successful:

• charter a boat for a ride around the lake
• take a special group tour of the local Wild Animal Park
• sponsor a spa day in a local hotel
• afternoon tea at a local hotel

Anything that will get her off the plane of thinking of introductions being in a strictly business context is great.

Good luck!

Editor's note: One advisor, Phoenix-based wealth manager Becky Gaylor, actually used an idea like this as a full-on marketing strategy. For one year, she hosted birthday parties each month for top clients, at a budgeted cost of roughly $1,000 per event. She phoned the clients a month in advance and offered to host a party for them and 10 to 12 guests as a way of saying thanks for being one of her best clients. Five years later Gaylor says she's still getting referrals from these events.

You can learn more about Gaylor's strategy and other great marketing ideas in Nicole Coulter's Horsesmouth article The Best Marketing Money I Ever Spent (free registration required).

Meeting "Ivy League Moms" by referral

According to HNW Wealth News, researchers have uncovered a brand-new demographic niche: "Ivy League Moms."   These are highly educated women who have left high-powered careers to stay at home with the kids for a while.  They're affluent, they are quite involved with the finances in their households—and guess how you need to find them? 

Yup.

Direct mail "won't work" to drum up business" in this niche, according to consultant Ekaterina Walsh, the author of the study. "Ivy League moms tend to use referrals to pursue most of their needs, whether for hairdressers, doctors or schools."

Walsh goes on to explain that special events can be quite effective with this demographic segment,

"but they have to be 'made over,' Walsh says. Going to a local restaurant will work if it's painted as a night away from the kids, and providing childcare for the event is a plus. These women crave adult conversation, so tacking on a cooking class, book discussion or even a second workshop based around their issues, such as re-entering the workforce, can draw their attention."

Take a glance at your client list. Do you have any "Ivy League Moms" in your book?  If so, you can bet they know others just like them.  If you have even a few, consider a special "invite a friend" event. Think about holding it in a unique place (free registration required), and/or partnering with another businessperson (what about a spa owner? High-end hair stylist?  vineyard owner?) to make it special and memorable and make your guests feel pampered. That's something stay-at-home mothers also crave!

You can also try a daytime event at a location where children can come along, but make childcare available.  Partner with the owner of a high-end toy store or children's clothing store, for example, or a Gymboree franchise.

The article describes some specific financial topics that may appeal to this demographic.  And don't forget that many "Ivy League Moms" have started part-time businesses from home, too, so this niche could still work for you, even if small business advice is your real area of expertise.

Finally, while you should always acknowledge client referrals, Walsh's research found that a nice "thank-you" is especially important with this group.

"Any referrals these moms send the adviser's way must be rewarded. 'Send a thank you card and maybe offer them a free trial of an ID-theft protection service or waive fees on the account for three months,' Walsh says. 'Any client would appreciate that, but it's a short cut to the heart of Ivy League moms.'"

Interested in this niche? Here are some additional resources that you may find useful (free registration required):

Case Study: Wine Tasting—How to Attract Affluent Clients
This top producer is sipping the rewards of a recent dinner and wine-tasting campaign, which yielded more than $15 million in new business. Not bad for a couple of hours of networking and less than $1,200 in marketing expenses.

Rookie Case Study: How to Build a Niche Serving Women Investors
When this successful insurance advisor made the leap into full-fledged financial planning, she focused on building a specialized practice for women. Here'show the rookie is making it work.

Money Clubs—A New Way to Reach Women Investors
Looking for a way to tap into the women's market? The new Money Clubs could be the resource you need. Here's how to get involved.

The difference between a "working by referral" business and a "word-of-mouth" business

I just read a short but astute interview in Real Estate News online with a business coach named Kim Ortega, in which she explains the difference between "word of mouth" marketing and referral marketing.  Here's how she boils it down (but do read the interview for more detail):

A word-of-mouth business is defined by salespeople who are passive and wait for referrals to come their way.... You are playing a waiting game versus having a plan of action.... In a working-by-referral business, you have a confident expectation that your actions will produce incoming business. You know who your advocates are, and you have a structure in place that allows them to help you build the quality of your business by asking them to introduce you to the type of client you want to work with.

In the long run, you work harder in a word-of-mouth business, not smarter. Word of mouth depends on chance. You will eventually learn your beloved friends and clients are not concerned about sustaining your business. You are the one who must step up and make the effort.

If you've already read Automatic Referrals, this should sound familiar. Only about 20% of your client base—your "raving fans"—will proactively refer to you. 

Why not the other 80%?  Well, it's not because they don't WANT to refer to you. It's because THEY'RE NOT THINKING ABOUT YOU.

You, of course, are hyper-aware of the need to build your business—and it's only natural to project our own concerns into other people's heads. But your clients have their own problems. In their eyes, you're not a  businessperson worried about making this month's asset goal or mortgage payment. As far as they're concerned, you're the financial expert who helps them manage their money so they can meet their asset goals or make their mortgage payment on that third house they just bought.  And that's pretty much all most of them care about. They're not even thinking much about their friends or extended family, much less you and your business.

Now, none of this is to say that you can't encourage clients to spread the word about you also.  A captivating e-newsletter (free registration required) is one way to do this—especially one that appeals to women (women are much more likely to forward articles and information to their friends and relatives if they think there's value there). 

Telling clients "not to keep you a secret" is another effective way to encourage word-of-mouth business development. But don't think that word of mouth can replace true referral marketing. Think of them as separate and distinct initiatives, and focus the bulk of your energy on the referral side, because that's where the biggest opportunity is.

If you're sitting back and expecting your business to grow by passive "word of mouth," you've got a long wait ahead.  Get proactive. Start building your business "by referral" instead, and take control of your own growth.

The referral opportunity - what you risk when you don't ask

Marketing expert and Horsesmouth contributor Robert Middleton had a characteristically wonderful post on his blog last week, the last in his series of 10 dumb marketing mistakes. "I've left the dumbest for last," he writes: "'Not Risking.'"

Robert recommends making a list of things you're not doing but would likely profit from if you got around to doing them.

Then, he writes, "Subject each item on your list to the following questions:

1. Is this something that would truly benefit me if I learned it or put it into action?

2. What are some of the possible benefits I might gain if I learned or did this thing?

3. What could I potentially loose if I didn't learn this thing or do this thing?

4. What's the worst that could happen if I took a risk and learned this thing or did this thing?

When you ask these four questions of every item on your list, you'll have reframed your risk. What used to look risky might not look so risky anymore. In fact, it might actually start looking like a great idea to learn or do this thing."

As Yogi Berra said, when it comes to marketing, "90% of this game is half mental."  The point of Robert's piece is that we often give up more potential opportunity by failing to take risks than we save ourselves. 

As an advisor, you're probably quite familiar with this idea.  You most likely have at least a few clients who used to keep most of their cash under a mattress, until you talked them out of it, because they were too scared of losing it by investing.  What they failed to comprehend was that NOT investing actually represents a greater risk over time (given a long enough time horizon, of course) than investing is.

You probably have other clients who weren't necessarily afraid to invest—they just couldn't seem to get organized enough to get their financial acts together.  Again, a lost opportunity that carries significant risk.

The same is true of referrals.  If you're not asking because you're too afraid of looking bad or offending clients—or because you just haven't taken the time to get around to creating a systematic referral process that works for you—you're taking a lot more risk than you may realize.

The truth is, the risk of asking for referrals is actually almost negligible when you do it correctly and systematically.  So don't let misplaced fear or disorganization cheat you of great opportunity.  Start getting your referral act together today!

How a $300 million advisor used referrals to build a niche business

Horsesmouth editor Nicole Coulter published a great case study today about Dominic Musso, a now-retired wirehouse advisor who built a $300 million practice in a targeted niche, all through referral. 

In a nutshell, here's the approach that Musso used:

Tell the niche members about your plan to serve other members of the niche and ask for their opinion on reaching out to that group. "Ask for help formulating a round-table agenda that would be attractive to other members of the niche," [business coach David] Leo says. "You want to go into a round-table meeting knowing some of the concerns of the group."

Musso, who attracted more than 800 oil industry clients over a 15-year period, concurs: "Take one person or couple in the niche. Take them out to dinner and learn everything about them. Identify issues beyond investments that could pose problems for them," he says. "When you focus on knowing your client, and identifying their issues-if you do that with one couple, that couple can eventually take you to 12 other people. The more you satisfy them by making them happy and demonstrating your interest in their welfare, and teaching them what they need to know about their life, the numbers get bigger and bigger."

The article goes into much more explicit detail about the "how" behind this prospecting-by-introduction approach and considers how it could work for a less experienced advisor struggling to break into a new niche. 

You can read the entire case study (free registration required) here:

Case Study: How to Crack Hard-to-Enter Niche Markets

Study: satisfied investors stick around, generate more referrals

In today's "news of the obvious," this just in: when clients are happy, they're more likely to refer.

Forgive my sarcasm... I suppose upon occasion, someone does need to actually go out and prove those things that common sense tells us are true.   J.D. Power's latest survey reveals that what they call "highly committed" clients of full-service firms are five times more likely to refer than other clients. More newsworthy, perhaps, is the fact that the client's relationship with an advisor figures prominently in their level of satisfaction with the firm—and almost equal with investment performance:

"The study, now in its fourth year, measures overall customer satisfaction with full-service investors by examining seven factors that contribute to overall satisfaction. They are (in order of importance): competitiveness of portfolio (20%); financial advisor/broker (18%); account set-up/account offerings (17%); commissions and fees (13%); customer service representative (12%); convenience (11%); and account statements (10%)."

The study found that these "highly committed" happy clients were also 33x less likely to switch firms. If you're not sure how satisfied your clients are, it clearly pays to be proactive and find out.

Also worthy of note is the importance of referrals in bringing in new clients profitably, according to the Power study:

"'Recommendations naturally have a positive financial benefit by reducing marketing and acquisition costs, which directly impacts the bottom line for investment firms as more assets are placed under management,' said James Lohmann, senior director of investment services research at J.D. Power and Associates.  'New clients are primarily motivated by a strong brand image and recommendations they received from colleagues and family.'"

So, that's just one more bit of proof that referrals are where it's at. 

How's YOUR referral strategy?

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.

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