How to Get Divorce Attorneys to Refer

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

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

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

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

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

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

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

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

2. Don't understand your areas of expertise

1. Don't know you want referrals!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hope this helps!

Best wishes,
Bob

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

My Clients Won't Set Up Direct Communication With Referrals

Welcome to Day 8 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by D. Jones, an independent advisor from Golden, Colorado. Congratulations!

D's question will be answered by Michael Brizz, creator of the Referral Mastery System. Since 1988, his Center for Professional Achievement has been helping financial advisors elevate their business to operate "by referral only."

Question: "I frequently have clients who seem to want to refer to me but will only ask for marketing materials rather than setting up more direct communication. While marketing materials are good, I feel there is no substitute to direct communication. What do you recommend?"

Michael Brizz's answer: You are right to want direct communication. Without direct communication, the odds of securing an appointment fall significantly. 

Your setup is very important.  In the Referral Mastery process, we make sure the following is in place before we discuss the actual introduction method—make sure the client:

1. can articulate your value
2. knows precisely to whom you want to be referred, and
3. understands why it is beneficial for the referral to meet you.

If you have done these steps, your client will want to make sure you and the referral connect.   

When you have completed the steps above, the next step is to develop a method of introduction that is comfortable for the client and workable for you.  It is important to have an open discussion about this and that you are open to different forms of introductions.  Pay attention to the shared interests of the client and the referral. 

Here are some examples.  We have a client this week that is going on a fishing trip to Costa Rica with a client, and one purpose of the trip is to arrange a power introduction between the advisor and a wealthy investor.  Another advisor client of ours just got back from a golfing trip to Hilton Head with a client and a group of referrals. 

This is much different from just having a name and a number or having a client give someone your marketing piece. Strive for quality personal introductions. 

You need to balance quality of connection with practical limitations.  Just because the client suggests you come along on an ice fishing trip to Alaska in January doesn't mean you have to go.  However, you very well might go if the quality of referral is high enough.  There will be plenty of time to develop rapport as you sit around that hole in the ice waiting for something to bite. 

The introduction does not have to be exotic.  Just yesterday, I suggested to my advisor that he come to my house for a picnic so he can meet a wealthy friend of mine.  I will make a point of briefing the advisor and setting up the conversation so the two of them will talk about investments.  They will have a warm and comfortable conversation over brats and beer on my deck.  They will have time to establish rapport and I will bet that my friend's curiosity about investments will push the conversation until they talk about specific investments and about Ed's technical methods of managing money.   

The higher the quality of referral you want, the more attention you want to pay to the method of introduction. Where at all possible, you want a personal introduction.  Agree on a method where there is time to have a conversation so the referral will feel comfortable with the next step - agreeing to the next conversation.

The meeting does not have to involve a week in Costa Rica.  It might be a cup of coffee at Starbucks.   It could be a 3-way conference call.  You want to make the connection happen in a way that is comfortable for both the client and the referral.  Pay attention to the shared interests and more direct communication will happen. 

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

Getting Clients Comfortable Discussing Referrals With Friends

Welcome to Day 7 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Bill C., an independent in Roswell, Georgia. Well done, Bill!

Bill's question will be answered by Chris Holman, a 20-year industry veteran and the president of Affinity Networking Systems, Inc. His sales prospecting nuggets and client acquisition strategies can be found on the Prospecting Professor. Chris is based in Minneapolis, Minnesota.

Question: "Most of my clients are more than happy to provide referrals, but it's obviously not on the top of their mind when they are amongst friends or colleagues, so they rarely bring up the topic. Or they don't know how to bring up the subject without getting personal. Do you have specific recommendations, dialogue suggestions, etc. to help my clients feel comfortable addressing the issue amongst friends and thus being able to effectively refer business to me?"

Chris Holman's answer: In the referral-dynamic between Advisor and Client, there are 6 sticky points that seem to continue crop up.

• Downside vs. Upside. From the client's perspective, what is their upside to referring their best friend, their mother, or a business colleague, to you? A thank you card? A free dinner? An 'attaboy?' In comparison, what's the downside? From the client's perspective, the downside and the worst case scenario of providing a referral—is that the referral doesn't go well, and the client loses a valuable friendship. If nothing else, the advisor should recognize and acknowledge that the client's downside outweighs the upside, when it comes to providing referrals. This acknowledgement lets the client know that you are empathetic to their concerns.


• Introductions vs. Referrals. In some cases, the term 'referrals' causes the client to freeze up, whereas 'an introduction' is much more benign-sounding. If this is the case, even though it is a semantic difference, so be it. You might find it helpful to remind your clients that you are only asking for an introduction anyway, not a lifetime commitment.


• Loose Lips Sink Friendships. It goes without saying, but I'll say it anyway. Are you completely discreet when it comes to your professional relationships? More importantly, are your clients aware that, should they provide a referral, you will guard client privacy (theirs and everyone else's) at all costs?


• Follow-Up and Thank You. Surveys have shown that one of the single biggest reasons that clients stop providing referrals is the lack of follow-though and thanks. After receiving a referral, be sure to thank your client appropriately, and inform them that you have followed through with your contact to the person who was referred to you.


• Be Specific. In some cases, it helps to remind your client as to what you will do, in specific steps, with the person who is referred to you. Some clients may have the mistaken impression that, when provided a referral, you will 'hound' this person with calls and letters—until they surrender. Outline the specific and professional steps that you take with all prospects that you are introduced to you—and this concern evaporates.


• A Touch of Class. Thank You Notes are a start, yet you might think of something even better. One advisor who I know sends out a gift certificate to the client's favorite restaurant—for BOTH the client and his 'significant other.' Another advisor learns the client's favorite charity, and makes a donation to that charity in the client's name. Either way, a creative 'thank you' is very effective.

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

My Networking Group Isn't Producing Referrals--What's Wrong?

Welcome to Day 4 of our Referral Clinic and Blog-a-thon!  We asked advisors to send us their toughest referral challenges. Now we're featuring the best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Victor M., an independent advisor in Brentwood, Missouri. Well done, Victor!

Networking expert Bob Burg is going to take on Victor's question.  Bob is a frequent speaker at financial services conferences and is the author of Endless Referrals: Network Your Everyday Contacts Into Sales.

Question: "I've been involved in a BNI group for nearly three years and have not been getting referrals. I've tried presenting myself as an asset manager for larger 401k rollovers, as someone who can help people just starting out, or someone who can open an IRA in a flash at tax time. Nothing seems to work. My fellow members are not sophisticated and are from every profession. Should I throw in the towel rather than renew my membership?"

Bob Burg's answer:  Referral-exchange groups such as BNI (Business Network International) are a goldmine when worked correctly, so let's look at a few things you might do in order to dramatically increase your odds for success within this organization.

While the following thoughts will encompass more than just your question (and some of these you might already be doing correctly) it's taking it all into consideration holistically that puts the odds in your favor.

The first mistake many advisors make in a group such as this is having unrealistic expectations. While the printer in the group can expect immediate business and referrals, the Financial Advisor cannot expect that. Not that it cannot or never has happened, but the odds are certainly not in your favor, and for obvious reasons.

So, know that it will take some time within these types of groups to develop the "know you, like you, trust you" relationships that will elicit the referral business (and direct business) you desire.

To do this, do what you would always do when cultivating networking relationships: add value to their lives. How? By referring business to them, providing them with information (not financial) that can help them, providing them with information (yes, financial, but not intended to directly sell your services) that can help them, and more.

Next, make sure that the message you give every week during your one-minute stand-up introduction is succinct, to the point, and benefits-oriented. Depending upon how you approach your business, make your benefit statement either very general ("I provide a system for people to create and manage wealth") or specific (I work with families who'd like to easily finance their child's education.")

Then, provide what I call a "How to Know" statement. What this does is to help your fellow group members to identify your prospect.

Note: Any technical information you provide here will be detrimental to your goal. They don't need to know or hear any technical terms—they don't understand them, and they don't WANT to understand them. :-)

An example of a good "How to Know" statement that a person who sells copying machines might give is: "If you're in an office and notice a copying machine with a wastepaper basket next to it filled the rim and overflowing with crumpled up pieces of paper, that's a good sign that copying machine has been breaking down a lot lately and that's typically a good prospect for me."

Notice that there was no talk about the copying machine itself, the "bells and whistles" or anything else? It just showed how to identify a potential prospect.

That's what you want to do with your "How to Know" statement. You are simply teaching your fellow members—your potential referral sources—how to be on the lookout for good prospects.

Next, once you've established a relationship with a fellow group member and you are certain that he or she knows you, likes you and trusts you, you can invite that person to coffee for the express purpose of obtaining referrals from them.

Remember, your referral exchange organization is simply one more profit funnel for you, and the relationships with its individual group members need to be developed and cultivated just like any other relationships.

I hope this helps. Good luck.

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

When Is Great Client Service "Great" Enough to Ask for Referrals?

Welcome to Day 3 of our Referral Clinic and Blog-a-thon.  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Andrea E., an insurance rep in Utica, New York. Congratulations, Andrea!

Andrea'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 the multimillion-dollar practice.

Question: "Everything I've read regarding harvesting referrals seems to hammer home the same message:  In order to obtain referrals, you must earn the right to ask for them by providing outstanding service.  How do you know when you've provided enough outstanding service?"

Katherine Vessenes' answer: The basis starting point of any referral program has to be building what we call absolute advocates—those raving fans who love you so much they can't help but send you their friends and family.

So rule number one: build a loyal base of advocates by providing great client service and the WOW experience. This has to be a level of service beyond what they can get elsewhere.

Rule number two: The time to ask for referrals is at the point of highest client satisfaction. I learned this hard way practicing law. The most likely point in time for me to get paid was when the client was the happiest with our outcome—when we delivered the estate plan or won the case. Getting paid then was easy—if I waited too long to send out the bill, the chances of getting paid actually decreased day by day.

The same rationale is true of our clients and getting paid through referrals. The time to ask is after you have demonstrated great value and proven yourself. Never ask before you have delivered a plan or something of value to the client.

Rule number three: pick your times carefully.  Here is one example: After delivering a financial plan is a great time to ask for referrals. The script would go like this:

"Jane, now that you have seen our plan and recommendations, how are you feeling about our work so far?" This question is crucial, because no one is going to give you good referrals if they are not happy with your service.  Frankly, we never know for sure if we are meeting clients' expectations unless we ask them.

Then ask this:

"Is there anything we can do to make this experience better for you?"

Once again this is great feedback to learn if your WOW level of service is working.  Assuming you don't get any negative response, you go to the next question:

"Great, I am so glad to hear that. That is what we were hoping for. Now I could use a little advice about my business, if you don't mind. I have enjoyed working with you so much, I have been thinking about focusing my practice on (pick a point of contact with them, like "other pilots like you" or "other members of the West Valley Country Club"). Does this make sense?"

See what they say to you. They might say some other financial advisor is already working with all the local pilots. Chances are they are going to think this is a good idea.

Then you ask: "If you were me, how would you go about it?" What you are asking for here is your marketing strategy.  Most people will give you a lot of good ideas, because they want to help.

Then you ask: "If you were me, who should I approach first?" This is where you get the names and other information.

Then: "How do you think I should approach them?" Most of your clients will be willing to call, send a letter or email. If not you may have to prompt them.

If your clients are not willing to recommend their friends come into the office for an initial meeting with you, let off a little of the pressure and ask if it would be a good idea to invite them to a seminar you were planning for pilots.  Most people would be happy to do that because it is non- threatening. Make sure you invite your client to come to the seminar and be your MC—this adds creditability to the entire program.

Other good times to ask for referrals:

2. After doing your annual client satisfaction survey. Once again, it lets you know if they are wildly happy with your service. If they are, ask them for recommendations on others who could use what you are offering.

3. After a client appreciation event. Call the clients, ask if they enjoyed the event and then go into the same questions listed above.

4. The annual client review. A good way to approach this is to confirm once again that they are happy with your service.  Then say "I want you to know, I will always make time for your friends and family who need the kind of services we provide. Can you think of any one who could benefit from our (describe your system here)—I would like to invite them to our next workshop."

5. Unsolicited praise. Sometimes clients like what you are doing do much, they start telling you how pleased they are with your services. This can be a great time to thank them and ask for recommendations.

Final thoughts: just start asking. The more you ask, the more comfortable you will feel and the more likely you will get new recommendations.  You won't get referrals from everyone, but even if you can get 1 in 3, this could improve your revenue by 30% or even more. Remember the best time to ask is when the client is the happiest with your service.

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

Asking for Referrals With Letters--Can It Be Effective?

Welcome to Day 1 of our Referral Clinic and Blog-a-thon!  We asked advisors to send us their toughest referral challenges. Now we're featuring the 20 best, along with solutions from top referral experts and veteran financial advisors. 

Today's winning question was submitted by Brandy D., independent advisor, Kimberly, Wisconsin.  Congrats, Brandy!

Tackling Brandy's question is referral expert Bill Cates, president 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.

Question: "I ask for referrals through my Thank You letters I send to clients that have just opened account(s) with me. 

The very last paragraph reads as follows:

'Again, I thank you for doing business with me and I look forward to continuing to work with you.  If you know of someone else who is in need of assistance with their financial decisions, I would appreciate it if you would have them contact me.  I am enclosing some business cards for you to give to them.'

I send about 3 to 4 cards with this letter.  My problem is that I don't follow up with my clients after this letter goes out because I am not sure what to say. Do you have any scripts or ideas that would help me make that second request for a referral?  Also, is it a good idea to ask for a referral in my Thank You letter?"

Bill Cates' answer:  Let me answer the last question first. "Is it a good idea to ask for referrals in my Thank You letter?"  I think you should let the "thank-you" letter be pretty much just that. Say thank you. Don't make it into a referral letter.

With that said, I think you can get away with planting a referral seed. In the PS, say something like: "PS—I'm never too busy to see if I can help other people you care about."

Also, asking for referrals with a letter rarely produces any results—especially when you don't follow up. As an aside, that's one habit you need to break yourself of—not following up. Don't do anything with prospects or clients unless you plan to follow up. When you don't follow up, you're out of integrity and you're usually wasting everyone's time.

I'll give you some language to help you with the follow-up calls to your clients—so you can maybe turn those letters into something productive. Then I'm going to give you a better formula to follow.

YOU: "George, this is Mary Smith. Do you have a couple of minutes?"

CLIENT: "For you Mary? Always!"

YOU: "Thanks, George. I'm calling as a follow up to something I mentioned in my last letter to you. As you may recall, I sent you a few of my business cards and suggested that I was available to help others who you think should know about the work I do.

"I don't want to assume anything, but I was wondering if you might be open to exploring who you think should be aware of the important work I do. Could we try that for a few minutes?"

From here, you move on and brainstorm some referrals.

There are two problems with asking for referrals over the phone. First, you can't see their body language—which often gives you clues to their comfort level around referrals. Second, it's hard to create enough time to have this conversation. Unless you arrange a specific phone appointment, most clients aren't prepared for the 15-20 minute phone call to talk referrals.

The best way to ask for referrals is in person. Here's the formula I promised—assuming you have enough of a value proposition that you run at least 3 meetings with your new clients.

First Meeting—Near the end, explore the value they feel they have received so far, and then plant a referral seed ("I'm never too busy to see if I can help others you care about with the work I do.")

Second Meeting—Near the end of the meeting, explore the value they feel they have received from the first two meetings. Then plant another referral seed such as "Don't keep me a secret."

Third Meeting (delivery of a financial product or plan)—Explore the value of your entire process, then move forward and ask for referrals.

If you do apply this formula on a regular basis, you'll create a steady flow of great referrals.

I hope you find this helpful.

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

The ABCs of Automatic Referrals: F is for Follow-Up

When the referrals and introductions start flowing, it feels great—like being on top of the world.  But that superhero feeling won’t last if you don’t know what to do with all of those leads.  It doesn't do any good to get referrals if you aren't organized enough to execute on them.   

We've got some extra work to do when we get a referral. In exchange for that nice fuzzy lead, we have to take care of not one, but two people: the referred prospect and the referral source. Fail to follow up properly with the prospect and the entire exercise has been for naught—plus you run a significant risk of damaging your relationship with the referral source. Fail to acknowledge and thank clients for referrals and you not only put those potentially important relationships at risk—you also lower the chances that you'll get additional referrals from those clients in the future. 

The more referrals you're processing, the more you need an automated follow-up process.  Why? Just look at this list of steps that are necessary just for converting a prospect into a client (from Barry Mendelson's article "Break Down Your Business Into 4 Practice Systems for Faster Growth" [free registration required]):

1. Data Collection
   • Prospect/advisor interview(s)
   • Prospect/advisor follow-up call(s)
   • Prospect profiling
   • Document retrieval/checklist
   • Schedule report or findings meeting
2. Information Processing & Case Analysis
   • Investment guidelines
   • Asset allocation decision
   • Estate & tax considerations
   • Work plan development
   • Phone call reminder
3. Report of Findings
   • Document preparation
   • Meeting agenda
   • Findings and proposal presentation
   • Close
4. Implementation
   • Contract preparation
   • New account forms completed
   • Client notebook delivered
   • Quarterly portfolio reviews scheduled

And that's not even considering the steps you need to take to get to that first meeting with a referral prospect... and the additional and parallel follow-up steps that you need to take with the referral source.   Did your client offer you an introduction, but you still need to put your heads together and find a good day for you to treat him and the referral to a round of golf? Did you send a handwritten thank-you note for the introduction?  Does your client expect you to keep him apprised of how things are progressing with the referral?  Did you send him a thank-you gift when the introduction ultimately turned into a new account? 

So, whether you're a solo practitioner or have a team of six, whether you choose to track follow-up on paper worksheets (like the follow-up checklist in Automatic Referrals) or using customized contact management software (free registration required), make sure to include an efficient follow-up system in your referral strategy.

Avoid tired referral tactics

I was really disappointed to see the following recommendation in a recent newsletter from JustSell:

Here are 3 simple ways to ask for the referral (remember, requesting a referral can happen anywhere throughout the sales process)…

FIRSTNAME, who do you know that might find PRODUCT/ SERVICE valuable?

FIRSTNAME, who else are you working with that might benefit from PRODUCT/ SERVICE?

FIRSTNAME, do you have any FRIENDS/ COLLEAGUES/ ASSOCIATES/ CLIENTS that might be interested in PRODUCT/ SERVICE? Do you have a number where I should contact them?

In our experience, the "who do you know who might benefit" approach just doesn't work.  If you get any referrals this way, chances are very slim they will be worth your while. People don't define their networks based on who might be interested in a particular product or service, any more than they define themselves that way (which is why effective selling starts with a discussion of client needs, not product features).   

Think about it.  Clients don't write things like "might be interested in college planning" next to their friends' names in their address books.  Instead, we can say to a client, "If you have friends or co-workers with young children who have mentioned they're concerned about paying for college, I might be able to help them like I've helped you." This approach immediately narrows the field and makes it easier for the client to relate to the request in a more natural way (because people DO categorize their networks in terms like "people with young children" and "people with whom I share a specific interest or concern or challenge.")

To be even more effective, clue in to things your clients tell you about their lives, and use that information to gain referrals.  If you discover that your client is on the development committee at her kids' private school, for example, you may be in a great position to suggest that perhaps the school would be interested in putting on an evening program about college planning.  That's not the kind of thing the average client thinks up on her own when you use the old "who do you know who might be interested in..." spiel.

So don't waste your time with tired, worn-out referral tactics.  Learn why, when it comes to referrals, the trick is in how you ask (free registration required).

The ABCs of Automatic Referrals: E is for Educate

When you went to buy your last pair of shoes, did you know what you were looking for?

I'll bet you had a decent idea.  Maybe it was a pair of running shoes, or loafers, or a pair of heels to wear to a wedding.  And you probably didn't go into the shoe store and say, "Excuse me, I need shoes. Can you sell me a pair, please?"

You wouldn't do that, because that would make it pretty difficult for the clerk to help you. Sure, he could make an educated guess about what you were looking for based on what you were wearing—but what if you had just come from the office dressed in your Brooks Brothers suit, planning to buy a new pair of running shoes? 

No, a vague approach to shoe-shopping would definitely a recipe for wasted time and general frustration.  Which is why we don't shop for shoes that way.  We at least have an idea what we're looking for, enough so we can get to the right department to browse.  And most of the time, we communicate a pretty specific idea of what we want: "I’d like a pair of Nike running shoes, please," or "I’m looking for brown loafers with no tassels." 

Now we’re talking. The clerk can quickly lead you to the loafers, rather than wasting your time (and his) showing you his entire line of workboots.

The moral of the story: if you want high-quality referrals, you have to educate your clients.  Because they simply don’t know your business like you do.  Don't assume they will extrapolate from their relationship with you, or that they know everything about you and your areas of expertise.  In fact, most clients are as likely to send you a neighbor with a $5,000 IRA as a co-worker with $5,000,000. 

You don't have to settle for referrals that fit you and your practice as badly as cheap shoes.  Help your existing clients understand who your ideal clients are and how you serve those clients. You'll start to get more qualified referrals that fit.

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

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

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

What does that mean?

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

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

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

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

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

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

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

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Golf your way to more referrals

The Journal Gazette of Fort Wayne, Indiana reports on a new company called Gain Referrals "with a simple business model: for a fee, area residents can be partnered with three other players to network over nine holes of golf twice a month. The idea is to allow local business owners to promote their business, learn about other businesses and get leads, all while enjoying two to three hours of golf once every two weeks."

Interesting idea.

Golf can also work as a pleasant way to facilitate introductions from clients and centers of influence. If you use network mapping to determine that your client has a friend or family member who might be a good prospect for you, you can offer to treat them all to a round of golf as a way to get to meet the prospect and build good will too.

If you've had success using golf to build business relationships—or if you'd like to improve your business golf skills—ask a question or post a comment on Horsesmouth's latest discussion board, Golf: Playing to Win Clients! (free registration required) featuring business golf expert Suzanne Woo.

By the way, Suzanne has a business golf blog too. Check it out.

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Center-of-influence referrals require energy and patience

I was struck last week by this passage in Jeff Thorsteinson's Horsesmouth article A 5-Step System For Building Centers of Influence (free registration required):

Some advisors fail to maximize their referrals from professional sources because of their inability to stick with a referral strategy. The fact is, it takes four or five times longer to secure a referral from a professional source than it does from an existing client. If you don't secure a referral from a given source within 12 months, don't give up. Conversely, if you've had some success at first, but then referrals have dropped off, that's not necessarily a reason to change your strategy.

Thorsteinson goes on to explain that you've got to treat COIs like your most important clients. He recommends 20 contacts a year, including a monthly COI-focused newsletter, as well as quarterly events just for COIs.

Is all that effort really worth it? You'd better believe it. For example, take the story of an advisor who started his own business networking group (free registration required). Peter Reuss invested $5,000 and hundreds of hours to get the group of the ground... and his perseverance paid off: he grew assets from $18 million to $55 million in just two years, mainly through referrals from members of the group.

If you understand that referral marketing requires time, patience, and strategic thinking, you can harness its tremendous power. The results will come. Just develop a strategy and stick with it.

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The ABCs of Automatic Referrals: B is for "Back Door"

Let's talk about initial conversations with referred prospects.

I hope you'll agree that where referrals are concerned, protecting your relationship with your referral source is of paramount importance.  It trumps establishing a new relationship with the referral.  That is, in the best of all possible worlds, you'll do both, but if it comes down to one or the other, you care more about keeping your existing client than about getting a new one.

That prioritization should inform the way you approach your conversation with a referral.  You want to make a good impression and get them interested in working with you, but not at the risk of pushing too hard.

One way to accomplish this is to use the concept of a "back door" when you first start talking with the referral.  You explain that you think you might be able to help them, but emphasize that you are simply feeling out the situation and have no expectations one way or another. 

Here's an example of how this type of follow-up conversation might go (with a tip of the hat to Bob Burg).  Key phrases that emphasize your relationship with the referring client and reduce pressure on the prospect are highlighted in red:

You: Mr. Saunders, this is Pat Caruso. Your name came up in a business conversation yesterday with Skip Peterson. I believe you know Skip from the hospital board?

Referred Prospect: Yes, I've known Skip for a couple of years. What can I do for you?

You: Skip didn’t assume you’d be interested, but he was very enthusiastic about a succession plan I helped him set up recently—I specialize in succession planning for privately-held businesses—and he thought you might be interested in doing something similar for your own business, so I told him I would contact you.  Maybe we can meet for a quick cup of coffee and I'll run it past you.

There are two reasons for this approach. One, it keeps the pressure on the prospect super-low. As Bob points out in his article Referrals: How to Set More Appointments (free registration required), most of us automatically get defensive and resistant if we feel someone is trying to "sell" us—and when we're feeling defensive and resistant, we're not open or listening.

Two, providing a "back door" makes you more attractive to prospects, because your credibility and desirability increase when you sound like you don't need the business. You're animated and friendly, of course, but without pressure or urgency.  Burg calls this lack of attachment to the results "posture."

Obviously, you should find words that fit your personality and style.  Just remember that the goal is to generate interest without applying pressure.  Assure prospects they're not cornered, and they'll be much more likely to listen to what you have to say.

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Take a walk and get some referrals

Here in northern Vermont, we endure about six months of winter every year. Sure, we get to ski... but that doesn't help much in March, when the ground is muddy, the trees are bare, and the thought of having to bundle the kids up in a snowsuit yet again is enough to send everyone who can find the time and money packing off to Florida for a few weeks.

That's why, when you go for a walk on a glorious spring day like today (68 and sunny), complete strangers nod and smile knowingly at you, and you return the grin. Maybe you even say, "Great day, isn't it?" and strike up a conversation.

Yup, days like today are absolutely perfect for cold-walking. And what does cold-walking have to do with referrals, you ask? 

Plenty.

If you follow the rules of networking during your constitutionals, you can learn a tremendous amount about your community by cold-walking—and, over time, build some very strong referral relationships. That's what Henry, an advisor in Ontario, Canada, discovered when he started cold walking in his community of about 14,000.

One of the four case studies in the Automatic Referrals report lays out Henry's success strategy in detail—but in a nutshell, he started walking up and down Main Street, "looking for things that piqued my curiosity." One day, he struck up a conversation with a nicely dressed man on the street, who turned out to be an undertaker.

The two had lunch, one thing led to another, and Henry ended up as a regular at the undertaker's monthly seminars for widows and widowers. Soon, the undertaker began referring business his way. In 18 months, Henry doubled his production from $300K to $650K and brought in $35 million in new assets, including three multimillionaires and seven millionaires—half of whom are referrals from the undertaker he met on Main Street.

Oh, and a side benefit: walking will help you reduce stress and get in shape (free registration required).

Got spring? Take a walk!

New networking organization for women

Periodically, I like to highlight new or interesting networking opportunities for readers who may be looking for something off the beaten track.

If you're a female advisor (or know one) who enjoys getting new ventures off the ground more than joining established ones, Team Women International might be worth a look.  This year-old networking group for women has a number of established chapters in the Western states (especially California) and is looking for members to start new chapters all over North America. 

If you know anything about Team Women or would like to recommend other networking groups, share your intelligence via the "comments" link below.

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A referral a day keeps the cold calls away

According to Brett Coffman of Matrix Wealth Advisors in Charlotte, N.C., physicians may be among the more challenging clients to serve, but they make up for it by also being among the most loyal.  "They tend to appreciate our advice more than any other demographic," he said in a recent Investment News article. "They tend to be our best-referring clients."

If physicians are represented in your client base, try mapping their networks and asking them for introductions.  By the way, some advisors find that physicians respond very well to the "asking for advice" method.  So you might want to give that a try.

Then, let us know what happens. (If you've already had an experience with asking a physician client for referrals, good or bad, click on "comments" below and tell us about it.)

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Client comfort inspires more referrals

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

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

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

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

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

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

Here are some resources (free registration required):

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

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

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The ABCs of Automatic Referrals: A is for Action

I am shamelessly stealing an idea from Thom Singer over at Some Assembly Required.  He recently started a series of posts called "The ABCs of Networking" (which I highly recommend, along with the rest of Thom's blog). 

The ABCs of Automatic Referrals... now that's an idea I just couldn't pass up.  So today marks the inaugural post.  And what better way to start than with the concept of action.

There's a reason that Nike's slogan "Just do it" became one of the best-known taglines of all time.   It resonates. We all know deep down that action is the cornerstone of success, and that sitting around wishing our clients would give us more referrals isn't going to get us anywhere.  We've got to take action and start asking.

The interesting thing, though, is that the very act of committing to improve your referral business can have a positive impact, even before you start making tangible changes in your strategy and tactics.  Marketing expert Robert Middleton alluded to this idea in a couple of very interesting articles in his More Clients ezine.  In "An Intention Experiment," Robert asked his readers to do a simple experiment: choose a positive goal or outcome and write it down as if they'd already accomplished it. 

Further, he asked them to reflect on this outcome each day for a week, all the while imagining themselves experiencing the feelings of satisfaction and happiness that achieving it would bring. 

"I got more email back from this than any eZine in memory," he wrote in his follow-up article, "Beyond Intentions." "People reported that they had received unexpected checks in the mail, gained new clients and workshop participants, etc.... When you finally get out of your own way with the endless stream of negative intentions (which include reasons why not, self-defeating beliefs, limited thinking, and lame excuses) you can actually get around to marketing your business." 

In short, simply forming an intention or making a real committment to get more referrals constitutes meaningful action.  Of course, you must then follow up on your intention with more tangible steps if it's going to have staying power.

We got validation of this concept from a top producer who started getting more referrals almost as soon as she began reading the Automatic Referrals report—to the tune of 10 referrals, each worth more than $1 million, all within a month of reading the report. 

"The remarkable thing is, it's kind of like writing down your goals for the year," she told us of the transformation in her business. "You write them down and you commit to them, and all of a sudden they start happening."

Referral success is within your reach. It's all up to you.  Are you ready to act?

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Bob Cobb on unleashing the referrals in your book

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

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

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

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

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

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

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

Item #1: the service you deliver

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

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

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

Client's Experience - Expectations = Client Satisfaction.

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

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

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

Item #3: How you approach the subject of referrals

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

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

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

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

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

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

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Referral fear--or just good timing?

I had an interesting email exchange about referral aversion with Connie Kadansky, a call reluctance expert who writes for Horsesmouth.

Connie took exception to the following passage from the article 10 Referrals You Can Get This Month (free registration required):

When it comes to new clients, you might be even more reluctant to ask for referrals. Give them a couple of months to develop a trusting relationship with you before approaching the question. But if you feel comfortable doing it right up front, go for it.

In Connie's view, that passage "reeks" of Referral Aversion call reluctance. She writes: "I believe that anytime we come from 'don’t want,' we are coming from fear. 'I don’t want to prematurely ask for referrals'... 'I don’t want to jeopardize this relationship.' We may be making up a story that 'it is too soon' to ask, when our new client may be the type of person that will give a great referral that afternoon. Why not gently put it out there in the initial appointment and ask the prospect and/or new client what their style is as far as introducing people?"

Connie raises an interesting point. In my view, there is a difference between being reluctant to ask and having a sense of timing. Some advisors (you may be one of them) are taught to start asking for referrals before they even sign a prospect as a client. I do not personally adhere to that approach. Looking at it from the client's perspective, I would be very reluctant to refer people to a financial advisor before I'd had a chance to really evaluate his service and performance—but I am thrilled to provide referrals once I really know and trust someone.

High-quality referrals and introductions come when clients recognize an advisor's value. That may happen immediately with some clients, and take longer to develop with others. I do believe it's best to ask when you can be confident the relationship has reached the right stage of development. It may be appropriate to ask new client A for an introduction or referral a few days after opening his account, while client B needs to be cultivated for a month or two.

I'd point to Scott Carr, a very successful advisor (well over $100 million under management) who has built his practice almost exclusively through referrals.  But he will sometimes wait for as long as a year to ask for certain introductions.  He believes, and I agree, that it's better to be patient and get the introduction than to rush things and force an unnatural situation. Patience is key, he says: "It might be a year before I feel comfortable asking to talk to someone." (A case study detailing how Carr used referrals to build his business is included in the Automatic Referrals action reseach report).

However, I also agree 100% with Connie that advisors DO tend to make up stories in their own minds about whether it's appropriate to ask a client for referrals—and, due to irrational fears, usually come to the conclusion that it's NOT appropriate. Some advisors won't ask for referrals even when a client relationship is years, even DECADES old. It's like the difference between the guy who knows it's not a good idea to kiss the girl ten minutes into a first date (good sense of timing) vs. the guy who's still shaking the girl's hand at the door after 10 dates (fear).

As I see it, the critical question to ask yourself is, am I really waiting because that's what the situation demands, or am I just making excuses because I'm scared to ask? Learn to take each situation individually and honor your own judgment—but if your “judgment” is constantly telling you it's dangerous to ask, you've probably got a case of referral fear—and you owe it to yourself to work on that.

Want to weigh in on this issue? Click "comments" and tell us what you think.

Thanks, Connie, for a great discussion!  Connie's article on referral aversion will appear on Horsesmouth in the near future (we'll let you know when it's ready for prime time).  In the meantime, you can read her other articles on call reluctance here (free registration required):

12 Types of Call Reluctance: Are You Plagued by Any of These? 

How Sales Shame Kills Your Prospecting--And How to Stop It

Stop Freezing in Front of HNW Prospects

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What does Dr. Pepper have to do with networking?

A great, short, and to-the-point e-tip popped into my inbox today from Diane Darling of Effective Networking Inc.  She's the author of a book I haven't yet read, but plan to pick up, called Networking for Career Success: 24 Lessons for Getting to Know the Right People.   

Diane writes:

"Remember the Dr. Pepper ad campaign ..... 10, 2, 4?

Those were the times you were to take a break and drink a Dr. Pepper ~ 10 am, 2 pm and 4 pm.

Consider taking a break at 10, 2, and 4... put in a random call to someone you've been thinking about.

This doesn't need to be a big project or task. Simply take 5 minutes to take a deep breath and connect."

What a quick and easy way to follow up on networking contacts or old connections you've let lapse because you got busy or distracted.   You can even alternate between making calls and writing notes. 

Remember, netWORKing only WORKS if you do something with all those business cards you've collected.  Start today!

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For quality referrals, communication is key

In last week's issue of his wonderful e-zine "Winning Without Intimidation," Bob Burg made a point that is absolutely central to a successful referral strategy:

When it comes to effective communication, the onus is always on "us" to be sure the other person understands our point/want/need. I related the story of the wise mentor who told me, "Burg, when the shooter misses the target, it ain't the target's fault." We can't expect others to put that burden of understanding on themselves.

Along the same lines, when you don't get the referrals you want from your clients, it ain't the clients' fault.  FAs tend to think of referral marketing as a reactive method, but that is a deadly mistake. If you do what most advisors routinely do—th