How Do I Get Clients to Bring Friends to Events?

Brie, an advisor in Fort Worth, TX, writes:

We are holding monthly educational dinners and suggesting clients bring guests. We are getting the same clients and no guests. Everyone seems to enjoy themselves, but the response is not what we were hoping for.

We asked Katherine Vessenes to tackle this one. Katherine is president of Vestment Advisors and the country's leading authority on building a multimillion-dollar practice.

This could be a good reason to have a client advisory board meeting. Or you could call a couple of them and run through some questions like this over the phone:

Jane, this is Katherine. I just wanted to get some feedback on our last educational dinner. (Pause and wait for a response).

How did you like the food? What where the top three ideas you got from the speaker? Is there anything we could do better?

(What you are looking for here is a rave review--if it is not a rave, the rest of this won't work.  If it's not a rave, take careful notes and use the criticism to improve your next event.)

Great, well I am thrilled you had such a good time, but can I ask you something personal?   You know the best way we can grow our business is with recommendations from happy, satisfied clients like you. We always ask our favorite clients to bring friends because we think that is the best way to meet them and introduce them to what we do. Unfortunately, none of our clients have been bringing friends to these dinner parties! Now, we know each other pretty well, so I thought I could ask you: what am I doing wrong? What should I be doing to get our favorite clients to bring their friends to our dinner meetings?

Once again, shut up and just let them speak--you will learn exactly what you need to be doing. I suspect this little phone call with your top 12 clients will probably have at least 3 or 4 of them bringing guests to the next event. From there, it starts to snowball.  Good luck.

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?

9 Tips for Referral Success In a Choppy Market

A sales manager in Canada called today looking for help talking to his advisors about asking for referrals in a volatile market.

Here is a key rule to remember at times like this: look around you, see what everyone else is doing, and then DON'T do that.

During choppy markets, most advisors have their heads stuck firmly into the sand.  They're hiding. But this is no time to hide. This is the time to INCREASE your visibility and show your clients just how great you really are.

1. First and foremost, make sure YOU are calm.  Reacquaint yourself with what you really believe and what your real value is.  This is a great time to get clear about what you actually do to help clients,  what is special and unique about you, and why a client working with you and your firm is better off in this market than a client working with another advisor, or going it alone.

2. Take proper care of your clients.  Your best referral strategy in a volatile market is to make your existing clients feel cared for and special.  They may not even be feeling especially concerned about the market, but you will make a big impression when they get that call from you saying "I thought you might have some questions or concerns about your portfolio and I wanted to call and put your mind at ease."

Again, remember, most advisors will NOT be proactive in a difficult market.  The referrals will come naturally if you show your clients you care enough and are confident enough to get out in front of the problem.  Just think about how you feel when you can't get a wholesaler to return your calls when his funds are tanking—and how much you appreciate those wholesalers who not only take your call, but who reach out to you proactively when there are performance issues, even if you don't have a ton of money in their funds.  So reach out and call every single client. Even the smaller ones. Even the ones whose portfolios are in the toilet.

3. Be ready to answer clients' questions in as much detail as possible. Be prepared to offer them specific comfort—not platitudes about how the market always goes up again, but details about how THEY are protected from disaster and why THEIR financial future is not crumbling before their eyes.  Put what they're seeing on the news into perspective based on their specific investments and your particular investment approach. 

4. Be a good listener. Sometimes clients just need to vent. This may be their life savings, after all.  Don't be defensive. But once they've vented, be prepared to explain to them how they are protected from the volatility, and focus on the ways that YOUR advice and counsel are contributing to helping safeguard their financial lives.

5. Watch and listen for referral opportunities.  In this environment, clients may mention family members or friends who are having problems, feeling scared, or being neglected by their current advisors. They may mention people they know who have been do-it-yourselfers but are now rethinking that approach, or who are otherwise unhappy with their investment situation.   

Be prepared to jump on those opportunities when they arise by talking about how you might be able to help those people.  "I can understand that your friend is frustrated and nervous that she can't reach her advisor.  If you think it might help, as a favor to you, I would be happy to sit down with her, take a look at her portfolio, and give her my perspective." 

6. Remember YOUR unique value proposition. If you happen to specialize in defensive investing or have special value to offer in a volatile market, be ready to mention that.  And even if you don't, remember that in your client's eyes, YOU are the expert. You have knowledge that you can share.  Offer to share it.  "Wow, it sounds like your mother is feeling very worried.  Would you like to bring her in to chat, and perhaps I can help put her mind at ease?" 

7. Listen for referral cues. During volatile markets, you're likely to hear compliments and recognition of your value from some of your clients.  You can probably guess which clients those will be—they're the ones whose portfolios are doing well, so they're likely to be feeling happy and grateful when you call them to discuss market conditions.  If a client does rave about how well his portfolio is holding up or what a great job you've done protecting her from volatility, be ready to leverage that compliment, because there's no better time to ask for an introduction or referral.  Learn to recognize praise and gratitude as a referral opportunity. 

8. If you have a newsletter or firm literature that offers valuable insights into what's happening in the market right now, you can offer to send it to people your clients know.  To add some urgency, you can mention that you're preparing a mailing right now because you want to get the word out to your existing clients quickly, to allay their concerns, and if they know anyone they think would find the information helpful, you'd be happy to include them in the mailing.

9. Continue using the same network mapping and targeted introduction strategy you've hopefully been using (the one you learned from Automatic Referrals), but in this environment, try to focus your efforts especially on clients who:

• are happy with how their portfolios are doing
• seem to have performance in good perspective
• have made it clear they value you for more than just their performance

Remember, change and uncertainty can be huge drivers of opportunity, as long as you're prepared to harness them.  Referrals happen because your clients recognize your value.  And there is no better time to prove your value than a choppy market!

How Can I Get Clients to Refer Up Instead of Down?

L.H., an independent in Montana, emailed last week and asked:

"I get many referrals to lower quality prospects. How can I get 'referred up' rather than'referred down?'"

It's a great question. There are two pieces to the answer.

The best way to get referred to the type of clients you want is to take control of the process: by asking directly for introductions to specific people your clients know, rather than waiting for them to suggest names.  Automatic Referrals teaches a process called "network mapping" that helps you match the types of prospects you want with the people your clients know, and then ask for introductions to those people. 

This is the referral method that the most successful advisors use.  It gives you much more control over your referral flow, and also makes it much easier to make contact with and make a good impression on referred prospects.

However, the reality is that sometimes clients will provide unsolicited referrals, and you want those prospects to be qualified.  The best way to deal with this is to make sure that you are properly educating your clients about your business and the types of clients with whom you work. Don’t assume that clients know your areas of specialty, specialized services you may offer, account minimums, etc.  You can educate them in casual conversations, in marketing materials, in your newsletter, or by discussing it with some standard language during client reviews.   And, to the greatest extent possible, it's good to train clients to check in with you before making a referral.

Here’s one example of how you might phrase this, either in a meeting or in language you include in a client letter or newsletter:

"A number of my valued clients have been kind enough to ask if I am accepting new clients.  I am always grateful for your trust in recommending me to friends and family members.  At present, I am able to take on new clients in two specific areas: business owners who are seeking the opportunity to sell or transfer their business, and corporate executives who are within five years of retiring.  If you have someone in mind who may be looking for this type of financial advice, please call the office. If I am not the most appropriate choice to provide the help they need, I will always try to recommend another advisor who would be suitable."

On a related note, if you are going to turn away underqualified referrals (which is entirely appropriate and necessary from time to time), make it a point to identify one or more other advisors to whom you will feel comfortable referring those referrals—advisors who will appreciate their business, and provide them with quality service.

Referral Clinic: "How Do I Get Around Referral Roadblocks?"

We're continuing to revisit some of the great questions we received during our Referral Clinic and Blogathon.  Today'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 have asked existing clients for referrals. One said he has a divorcee friend with $2mm investable dollars. Every time he speaks to her about me, she seems to be traveling. Another client gave my name to friends and they never called. I asked her for their number and she said if they wanted to speak with me they would call. I need ways to get around the roadblocks.  —Stewart, independent advisor, New Mexico

Katherine Vessenes' answer: I think it is time to do what I call the "Country Music" approach to marketing. There is a very popular song by Keith Urban with a chorus that goes: "I am gonna love you like nobody loves you and I will earn your trust building memories of us."  What you want to create for your clients is an experience so powerful that they can't stop themselves from recommending you.

Take these clients and the people they want to refer to you. What do these prospects really enjoy doing? Is it baseball? Opera? Gourmet dinners? Note I did not say what do you enjoy. This is all about the client and creating a great, memorable experience for them-something that other brokers are not doing for them.

Whatever it is that is important to this group, I would call them and give them this speech: "Say Jim—I know how much you enjoy baseball. Well, I got 6 tickets for the big game on (date). I thought this would be a good time for us to have a fun evening and for me to meet Suzy in a non-threatening environment—what do you think? Can you guys come?"  If they are busy, find out a day they are free and then plan an event around that.

Note the key thing here is pull marketing, not push. The night of the big party, you probably don't even mention getting together unless the prospect brings it up.  Once you know them personally, you can either add them to your drip list and invite them to seminars or other events you are doing. Or you could call them in a week or so directly and say you enjoyed meeting them and would like to get together again and see if there is a fit for what you do.  This depends on the prospect and the level of response you are getting from them.

Good luck.

Avoiding Conflicts of Interest with Friend and Family Referrals

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

Today's question comes from Shane, an advisor in Richmond, Va. and will be answered by Michael Brizz, creator of the Referral Mastery System.

Question: "Should you approach the referral process differently if you perceive a conflict of interest for your client? For example, your in-law's family is successful and you work with your in-laws. What is the best way to ask them about their brothers/sisters and not have it feel as though they'd be referring you based solely on your marriage?"

Michael Brizz's answer: Keep in mind that the reason for the referral is to help the referral, NOT you.  Therefore, it is important in your qualification process of the in-laws to learn about them and ways you can help them. 

When you do this, it becomes very easy for your client to refer you because there is a relevant reason for the introduction.  Your client would happily refer the heart surgeon who saved his life to a family member with a heart problem.  Your client will also refer you if there is a relevant reason for the referral.  Rather than try to get referred to many of the in-laws at once, focus on learning a lot about a few—starting with one. 

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.

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.

Referral Clinic: Bob Cobb on how to get referrals when your book is small

Today we're featuring another advisor question we received during our Blog-a-thon and Referral Clinic in May. This question, from Alison in Middlefield, Connecticut, is answered by Bob Cobb, the President and CEO of sales training and coaching company Ultimate Financial Advisor.

Question: "I am having trouble building my book of business and so do not have a good base of clients to ask referrals of. How can I get referrals when my book is small? I have asked my current clients but they say their friends all have sons in the financial services or they already have advisors, etc."

Bob writes: He who hires himself as an attorney has a fool for a client—and hiring your kid is even worse (that being said, I don’t think my mom would have made a good prospect for you when I was an advisor).  So let’s tackle the "other advisor" problem.  I would expect them to all have advisors (just as almost everyone that buys a car, house, or television already has one). 

You can bypass that by saying, "You know, I can’t remember the last time that I opened an account with someone that didn’t have an advisor."

Here are some steps to start getting referrals regardless of the size of your book:

• Exceed your clients’ expectations at every turn. The happier your client, the greater the likelihood they will refer.  Remember the client's Happiness Ratio: 

Happiness = Reality/Expectations

• Develop a referral mindset.  You and your clients should both think of referring business to you as a benefit of doing business with you, not an obligation.
• Plant the seeds early.  I coach advisors to be talking about referrals in the earliest stages of their story.
• Master your Ultimate Value Proposition. Your clients will never be able to position you better than you position yourself.  When I ask advisors what they do the often stumble and struggle.  It needs to roll off your tongue, and it needs to be in plain English (clients don’t understand "a holistic approach to comprehensive wealth management"—if you are going to say that, you must translate it for them).

Check out these Bob Cobb articles on Horsesmouth (free registration required):

• How to Turn New Clients Into Loyal, Referring Fans in 90 Days 
• Track Your Numbers Like You're Tiger Woods 
• Getting More Client Assets: A 5-Step System That Works 
• Case Study: Quintuple Revenue by Co-Marketing With CPAs

Advisor question: How do I handle performance-based objections?

Today, the answer to another question submitted during our Morningstar Advisor webinar "How to Trigger Natural Client Referrals by Conquering Referral Anxiety" (replay available here).  This one comes from J., an advisor with Charles Schwab:

I have been asking for referrals and the clients say, "Okay, I will think about and it and get back to you after seeing the portfolio performance."  So what does that  mean?

Well, to me it means a couple of things. First is that you're asking the wrong clients for referrals, and/or asking at the wrong time.  Second, you may want to rethink your value proposition and how you are positioning yourself in the minds of your clients and prospects.

These particular clients have not yet decided that you are referable.  Either they haven't been working with you long enough, or for whatever reason, they are not yet convinced that you are bringing them the kind of value they expect. And you will never get high-quality referrals from people who don't have full faith in you.

Learn to listen for statements indicating that clients recognize your value and how much you're doing to improve their lives, and use those statements as indicators that it's time for a referral conversation.  For example, one advisor who's had great success with our Jumpstart Program told us this story about a couple she works with:

"They had been clients quite a few years, and they were marveling at how their funds had done. They have almost a seven-figure portfolio at this point.  So I said, 'Do you know a lot of people you work with who maybe don't have this type of a portfolio?  What about your trade association?' And they said, 'Of course! We'll send you the roster!' and all of a sudden I get 50-some names and email addresses and phone numbers."

Notice that she positioned her request in response to specific value-recognition comments made by the clients.

If you're not hearing any of those types of comments, ask yourself if you're engaging in enough conversations about their expectations and your service. Try asking more questions, such as "What have you found most valuable thus far in our working relationship?"  Make sure you're conducting a sufficient number of reviews with your best clients, because quarterly and annual reviews (especially when performance has been good) are terrific places to have conversations that lead to confirmation of value—thus providing a great opportunity to ask for a referral or introduction.

It also sounds as though, in these clients' minds, your value equals their portfolio performance.  Performance matters, of course, but if that's the only thing they're thinking about, something is missing. You're trusting your professional fate to the ups and downs of the market—and even if you're consistently able to achieve fabulous performance, you're limiting your ability to differentiate yourself from the competition.  What if another advisor comes along who can point to good performance? What will stop your clients from defecting? 

Job #1 for you is figuring out what is special or unique about you?  Step back and invest some time and energy in your value proposition, your branding, and your client service and communication strategy. When those pieces come together, referral conversations will flow more naturally, and I suspect you'll start to find that your other marketing and prospecting strategies get easier too.

If you need help, Horsesmouth is loaded with resources on these and related topics. For example (free registration required):

The 'Everyday Advisor' vs. the 'Branded Advisor'
When you follow the three key elements of a disciplined branding system, you'll absolutely clobber the competition. The reason: A focused, concentrated effort shows people who you are, what you stand for, and why it matters. Compare that to the "everyday advisor" and see the difference for yourself.

6 Ways Value Statements Boost Business
A value statement is not just a catchy marketing slogan—it's a tool that enables you to set more meetings, close more sales, and make clients tell their friends you're the best FA they've ever had.

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

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.

Advisor question: How do I make my referral thank-yous memorable?

During our recent webinar on Morningstar Advisor, "How to Trigger Natural Client Referrals by Conquering Referral Anxiety" (replay available here), my colleague Sean Bailey and I were unable to answer a number of questions submitted by the advisors in attendance due to time constraints.  So I'll be answering those questions here on the Automatic Referrals blog.

This one is from Linda T.: "When I receive a referral, I send the client a thank you after I have met with that referral.  Are there any ideas you have for how to make that thank you memorable to ensure I get more referrals?"

Linda, it's great that you're aware of how important it is to say thanks for referrals.  Not only is it basic manners, but it really works.  At a bare minimum, you should be sending a handwritten thank-you note on fine stationery—but many advisors do find that a small but memorable thank-you gift can have a very positive impact. (In fact, I just spoke with the head of a brokerage firm last week who told me the firm has actually begun sending referral thank-you gifts (in the advisor's name) such as barbecue tools and MP3 players, and that while he initially thought the idea was "kind of cheesy," the clients are loving it and the referrals are flowing.)

We actually addressed this question on the blog a couple of months ago, during our Blog-a-thon and referral clinic, with the help of successful and very creative independent advisor Jay Eshbach. Check out his post, "How to Provide a 'WOW' Factor to Thank People for Referrals."

The one thing I would add, Linda—and this is my golden rule for all gifts all the time—is to try to take each client's tastes into account.  Yes, you can offer the same cool thing to everyone, and they'll appreciate it... but they'll appreciate your gift more, and feel even more special, if it reflects an understanding of who they are and what they care about.  That takes more effort, of course.  But if you've received an account worth thousands or tens of thousands of dollars to your bottom line thanks to a client's generosity, isn't it worth a little extra work and thought?

If you're drawing a blank, here are a couple of articles (free registration required) full of innovative ideas for creative personalized gifts:

20+ Ways to Build Client Relationships With Gifts
Why wait for the holidays to let your best clients know you're thinking of them? Here are more than 20 ideas on how to strengthen ties through gift giving year-round.

Holiday Gifts for Clients: Where to Buy the Best
Don't get caught like a reindeer in the headlights when it comes to shopping for client gifts this holiday season. These innovative ideas will not only please your clients, they just might generate some prospects as well!

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).

Referral Clinic: "My best clients are using me up!"

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

Today's question comes from Carol, a wirehouse advisor in Englewood, CO, and 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.

Carol asks: My ideal client has said I have been spectacularly successful in getting them to consolidate, assess and plan. Our investments have done very well. My problem is they believe if I have fewer clients, I will have more time to attend to them—and they have inquiries nearly every month which require research. I need to tell them I will not BE IN the business if I do not service more clients in the $3M range-just like them. How do I say they are using me up, which is short-term helpful to them, but long term means they will be with a different advisor?

Katherine Vessenes replies: Carol, I have two thoughts about your dilemma.

First, you might not be feeling so burned out if you felt like you were getting compensated for your time. Many years ago I learned an important lesson while practicing law and trying to keep the difficult clients happy: I would just raise my fees until I fell in love with them again. Consider using your RIA to charge fees or raise them for the level of service you are providing.

Second—if that doesn't work, then go to plan B: I would invite them to be part of your informal client advisory board. (Although this technique will work with just this client, it would be better in a small group of similar clients.)

Call them and tell them you would like to invite them to a dinner party and get their feedback on a couple of things because you really value their advice and are seeking some ideas about your business.

Start the meeting off by describing your ideal client. Then get the discussion going by asking the clients what they think the ideal client would like about your current level of service, and what they think you should change. Take copious notes, of course. Then ask them for suggestions on how to get more referrals to this group.  Good ways to phrase this are: if you were me, how would you approach this group? Can you give me some specific suggestions? If you are really bold, you might say: some of my clients have been hesitant to give me referrals even though they really like my services. What am I doing wrong?

Two things should happen after this meeting: you should have a great marketing plan to your ideal client, and your existing clients should be much more motivated to give you referrals.

Good luck and let me know how it works out for you.

Got questions or thoughts about today's challenge or the response? Post a comment!

Referral Clinic: Bob Cobb on how to get referrals without a track record

The response to our recent Blog-a-thon and Referral Clinic was overwhelming.  We received hundreds of great questions from advisors, most of which we weren't able to answer during the formal event. So, we figured, why not keep on going? 

Today's question comes from Mark, a wirehouse advisor on Cape Cod, in Massachussets, and will be fielded by Bob Cobb, the President and CEO of Ultimate Financial Advisor, a sales training and coaching company dedicated to helping advisors build the practice of their dreams.

Question: "My biggest challenge is that I'm new in the business. One year. Although I am confident in my abilities, when I ask for referrals I constantly run into the road block of people not willing to refer me due to not having enough of a track record. I think they might feel that they may be risking their own reputation."

Bob writes: Mark, I don't know you, obviously, although your market does. If they are telling you that you don't have enough of a track record, that must be something that you are projecting in some way or another. 

The Titans at your firm are not selling "track record" and they are not getting that objection.  Since you can't predict, forecast, or guarantee what results will be, they would not be part of my conversation with prospects or clients.  The best advisors who receive the most referrals convey a sense that they are knowledgeable and will help clients reach their specific goals, dreams, and aspirations. When you are conveying that, track records and length of service are less of a concern to your prospects. 

Editor's note: In addition to taking Bob's advice and looking at what you're projecting, Mark, it might make sense to try a little show and tell. I assume that the people you're asking for referrals are not clients, because if they were, they would presumably have enough faith in you to refer you (unless you're not meeting their expectations, in which case you've got more than just a perception problem). 

If it's other sources you're asking, have you sat down with them, discussed your business and your experience, and even offered to do some work for them gratis to demonstrate your abilities and approach?  That approach worked for Georgia French of Scott & Stringfellow when she was trying to generate more referrals from employees of the bank that owns her firm. She actually invited them to accompany her on appointments and did sample financial plans for them so they could see her work.  Other advisors show their stuff by evaluating potential referral sources' 401(k)s.  You can read more about these approaches in 12 Steps to a New Kind of Referral Business (free registration required).

Do you have a referral or business-development challenge that's got you stuck? Send it to us and we'll do our best to help.

Don't let self-limiting thoughts wreck your referrals

Gail, a regional advisor from Texas, wrote in to tell us that even after 20 years in the business and despite being a big producer, she still finds that asking for referrals is her greatest business development challenge.  She says she's concerned that "my clients will wonder why I'm asking at this point in my career."

We all worry from time to time (some of us more often than others) that people are thinking negatively or critically about us.  And certainly, it's good to be aware of how others might perceive us, to ensure that we don't do anything truly foolish or destructive.  But most of the time, we're projecting critical thoughts onto others, thoughts that are exaggerated or just plain fiction.  And those thoughts hold us back in unhealthy ways.

This is a common problem with advisors where referrals are concerned, and it's the problem Gail is having. She's got this idea that there's something inappropriate about a successful advisor needing to generate new business, and she's projecting that idea onto her clients.  It's problematic enough that the idea itself is flawed... but attributing it to clients makes it doubly dangerous.

Whenever we make an assumption about what other people are thinking or feeling, we should stop and examine it objectively.  (You'll find this works especially well with spouses!) Often, when we expose our assumptions to air and light, we're able to see their weaknesses and strip them of their power. 

So let's examine Gail's assumption.  Think of some high-end, successful industry icons.  Bill Gates and Microsoft, perhaps. Saks Fifth Avenue.  Mercedes.   When you see an ad for one of their products or services, do you think to yourself, "Wow, I can't believe they're still trying to get new customers?! I mean, they're so successful, and they've been around for so long..."

Of course not. 

Or let's look at it another way.  Do you assume your attorney or your accountant will never need another client again? Or if you needed back surgery and called the office of the most brilliant and sought-after orthopedic surgeon in your state to get a consultation, would you expect the receptionist to tell you to take a hike because the doctor is just too successful to take on any new patients? 

You see where I'm going here.  99.9% of clients are neither surprised nor concerned that their advisor is interested in or willing to accept new clients.  Most clients probably don't give much thought to their advisor's other client relationships or business development situation at all. Why should they? It's not their job, just as it isn't your job to wonder whether your dentist's practice is thriving or not.  But to the extent that they do give it any thought, your desire to take on new clients has no bearing whatsoever on your quality or professionalism. 

In fact, if you ask the right way, you can actually reinforce your exclusivity and make your clients feel like members of a small and elite club.  This is a secondary issue for Gail, who says, "I especially want to emphasize that I'm only looking for million-plus dollar accounts without sounding snobby."  She can play that up in the way she phrases her referral discussions.

If Gail uses network mapping to pre-identify prospects or prospect types in her clients' circles who are likely to be qualified to do business with her, she can ask for introductions to those people in a way that reinforces just how successful she is.  "John, I know you're on the board of the Houston Advertising Federation. I believe Kim Phillips is also on the board?  She's one of a select group of ad execs in the area whom I've been focused on meeting over the past few years. What would you think about the three of us having lunch sometime next month, on me?" 

Can you see how this kind of exchange would actually reinforce both John's and Gail's importance and elite standing?

Don't let self-limiting thinking (free registration required) dampen your success. Anytime you find yourself concerned that something you do or say has made or is going to make a bad impression on others, stop. Recognize that you've made an assumption. Examine it.  Maybe it's valid—but more likely, you'll find that it's both without merit and counterproductive. 

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.

How to Defeat Referral Reluctance and Change Your Outlook

Welcome to the last day of our Referral Clinic and Blog-a-thon!  It's been a great few weeks, and we're grateful to the hundreds of advisors who submitted questions. We will continue to feature new questions and answers in this space on a regular basis. In the meantime, you can revisit the Clinic questions and answers or read posts you missed by clicking on the "Referral Clinic" link on the right, under "Categories."

Today's winning question comes from Jerry R., an RIA in North Charleston, South Carolina.  Congratulations, Jerry!

Jerry's question will be answered by yours truly, Miriam Lawrence, resident referral expert at Horsesmouth and author of the Automatic Referrals blog.

Question: "I don't ever ask for referrals. I spend a lot of time trying to build a relationship with my clients but I stop short because I am afraid I will end up sounding like a salesperson (not that there's anything wrong with that) What advice can you give me to change my outlook on referrals in general?"

Answer: Jerry, you're in very good company. Many advisors never ask for referrals because of some degree of fear-ranging from vague discomfort to something approximating utter terror.  And typically they describe their feelings with words like "pushy," "greedy," and "salesy."

What's going on here?

One factor is that advisors often think their relationships with clients are much more fragile than they actually are.  Many also have negative associations around selling or prospecting. They think, sometimes on a subconscious level, that any overt business-building activity is selfish and bad.  (Our nickname for this at Horsesmouth is sales shame [free registration required].)   And they project those negative feelings onto their prospects and clients. So it's not that the client perceives the referral conversation as negative—it's that the ADVISOR perceives it that way, and projects those feelings onto the client. 

If any of these descriptions sound familiar, try this exercise to help you see yourself (and your value) from your clients' perspective and get past your fear.

There's an additional angle to consider.  Based on how you worded the question, you're primarily feeling uncomfortable about asking for referrals because you're framing them as a way to help YOU. 

And that's an entirely appropriate concern.  Ethical professionals understand that clients aren't there to serve US.  We're there to serve THEM.

But what most advisors fail to realize, because they're so wrapped up in their own concerns about building their business, is that offering to work with people their clients know IS another way to serve their clients. 

Most referrals happen not because clients are trying to help their advisors, but because they're trying to help the people they care about.  Sure, a referral will help you too, but that's secondary.  When the newly divorced client you helped get back on her feet recommends you to her friend whose husband just ran off with the babysitter, she's not doing it to make your bank account bigger; she's doing it to help her friend.   

So, in fact, a referral is an opportunity for you to help a new client—and, by extension, the person who referred you.  If you truly internalize your own value (there's a worksheet in the Automatic Referrals report designed to help with this, by the way), you'll be much more able to comprehend this truth.  It's a big paradigm shift for many advisors-and it's also critical to your success.

So, instead of thinking of yourself as scrounging for new clients, realize that when you ask for a referral, you're offering your guidance and expertise to the people your clients care about. Refocus your energies and start thinking of referrals as enhancing your clients' lives and the lives of the people they know.

If you're not there yet, don't worry—it takes time to get to this state of mind when you're used to thinking of asking for referrals as a self-centered, "salesy" activity.  But the more you ask for referrals from that client-centered place, and the more you find that you're not suffering any of the terrible consequences you were afraid of, the more confident you'll start to feel in your value and in the strength of your relationships with clients.

Good luck!

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

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