The 7 Deadly Sins That Destroy Referral Business

Are you sabotaging your own success? Horsesmouth contributor Matt Anderson, president of the Referral Authority, recently shared his list of the top seven worst mistakes advisors make around referrals.  See if any of these sound familiar.

1. Don't know who is giving them referrals. Many advisors don't know where their referral business comes from or why their top referral sources like them so much.

2. Don't know when to ask for referrals. Many FAs ask at the wrong time.

3. Have an unhealthy mindset about asking for referrals. Many avisors develop a negative attitude about referrals, or even outright fear [free registration required].

4. Don't know what drives referral conversations. There are six steps to an effective referral conversation, but many advisors do not know them or consistently follow them.

5. No niche. For FAs, there are enormous advantages to concentrating on a focused demographic. Do you know the five qualities of a good target market?  (By the way, more referrals are just one reason for having a niche!)

6. No strategic referral relationships with other professionals. Advisors must deliberately build reciprocal referral partnerships with other professionals.

7. No system in place for keeping in touch with clients year-round. People think about themselves 95% of the time; they don't sit around brainstorming ways to refer more clients to their advisor.  If you want to get referrals, you've got to stay top of mind.

Are you making any of these mistakes?  Read the entire article, "The 7 Deadly Sins That Destroy Referral Business," (free registration required) and stop missing out on all of those referrals you could be getting!

Touch Referral Sources with a "Thinking About You" Call

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

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

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

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

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

Ugh.

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

What you want to do, Art writes, is:

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

For example,

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

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

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

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

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

Five Great Times to Ask for Referrals

One of the referral questions we hear most often from advisors is, "When should I bring up the subject?" Referral expert Matt Anderson tackled this topic in a recent Horsesmouth article, suggesting these five excellent times to talk about referrals:

1. During a formal client meeting, after you've confirmed the value that you've brought to the client thus far.

2. Just after the meeting. For instance, you can casually ask while you're walking to the door of the office or to your cars. Matt says he likes this time because the other person is more relaxed. You're most likely talking about something informal, such as what the client is doing over the weekend. Then you can pivot back to business by asking, "Oh by the way, when we were talking earlier, you mentioned"... and now you get specific:

• Speaking at a company event
• That your parents live nearby
• That you thought your business partner might benefit from doing the kind of work we've been doing

Then ask:

• What would be a good way to organize that?
• Would you mind seeing if they'd be open to a quick conversation with me?
• Do you think the three of us should have lunch sometime?

3. On the phone as you inquire about some value you added to the client. Give first, Matt explains... then receive. Send the other person some referrals or sales ideas.  Tell them about an event that might interest them (or even invite them to go along with you, if you have a membership or exclusive access).  Create an "emotional bank account," Matt explains, and get a decent account built up. Then you can start making some withdrawals in the form of referral requests.

4. While having lunch, coffee, or a beer—again, once you have provided value. 

5. When your gut tells you. Listen to your gut, urges Matt. Sometimes you just know you've established a good rapport and can ask for what you want. This sense usually develops with experience.

For the complete picture, read Matt's Anderson's article, The Best Time to Ask for Referrals, in its entirety (free registration required).

Bill Cates with "Nine Tips for Visiting Clients"

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

"Burn the Boats" to Achieve Referral Success

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

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

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

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

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

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

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

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

The ABCs of Automatic Referrals: L is for Listen

  Have you ever noticed that the best conversationalists are the people who let YOU do all the talking?  You know these folks. They ask you question after question and seem genuine interested in the answers. They pay attention.

These are the people most of us most like to be with, because they make us feel special and important. Well, your clients are no different, except perhaps that they are paying you, and therefore deserve your full attention even more than someone you just met at a cocktail party.

Advisors who listen well are more likely to have happy, satisfied clients—and that's the first step on the road to more referrals.

It's also important to remember that listening is a mission-critical skill in the Automatic Referrals process.  Remember that detective work is a big part of that process.  Give people a chance to talk, ask some simple probing follow-up questions, and you'll be amazed what you'll learn that can help lead you to great prospective referrals.

Here are a few tips to help you fine-tune your listening skills:

• Clear your mind. We all have a multitude of thoughts going through our heads at any given time. However, it is important that clients be given the full attention they deserve. Mentally put everything else aside. For the time you are together, your conscious self belongs to your client or prospect.
• Make eye contact. Show the client you want the business and have nothing else on your mind or agenda.
• Signal that you are listening and watch your cues. Don't let on that you have more important things to do. Checking your watch or pager implies your time is more valuable than your client's. Use affirming non-verbal cues such as smiling, nodding and attentively leaning forward.
• Be comfortable with silence. People often make their most revealing comments when you allow a silence to persist for a few seconds longer than might initially seem comfortable. Let YOUR client's words be the ones to ring in your ears RATHER THAN your own.
• Don't interrupt. Pause for three seconds after your client finishes a thought before responding. People speak at different speeds. Some speak slowly and others may stutter. Allow them to finish what they have to say.

Check out these additional resources (free registration required) about how to become a better listener.

Do You Really Listen to Your Clients?
Or do you merely wait to talk? There's more to listening than not talking—and prospects and clients can tell the difference.

How to Get Prospects Really Talking
If you want to motivate prospects to act, you've got to know how to appeal to their emotions—and that means asking four important questions.

Shut Up! 8 Reasons to Keep Quiet With Your Clients
People will pour out an astonishing amount of useful information if you just give them a chance. Try this technique during your next client meeting.

Want More Referrals? Get a Niche.

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

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

   

It's hard to argue with those results.

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

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.

Get Yourself a "Networking Buddy"

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

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

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

The ABCs of Automatic Referrals: I is for Introduction

f you've been reading this blog for any length of time, you've probably noticed that we stress asking for introductions over asking for referrals. Why is that?

Well, in the best of all possible worlds, you would get a personal introduction to every new prospect with whom you want to do business. An introduction is nearly always better than a referral, for a number of reasons.

• A face-to-face introduction boosts your credibility. Even though your client may never directly endorse you, the prospect will infer such an endorsement. That implied endorsement is tremendously important, especially when you're dealing with high-net-worth prospects—because the research says that these prospects want to establish their financial advisory relationships through referral or introduction. When your client actually introduces you to their friend or family member, the trust the friend or family member feels for the client automatically extends to you to some degree. We call this "the credibility glow."Sometimes clients will go the extra mile and endorse you.They might mention what a great job you've done for them, or tell the prospect they would be crazy not to meet with you. It doesn't get any better than that!
• An introduction often makes clients more comfortable because it lets them keep some control over the relationship. Some clients are nervous about handing over a name and number because they don't know if the person they're referring is interested in hearing from you. They also don't know what you are going to say or do once the information is in your hands. What if you're pushy or embarrass them? With an introduction, they get to mediate and ensure that the meeting happens on THEIR terms. Introductions in social settings can also feel less pressured and more casual.
• Introductions give YOU more control. They allow you to be more proactive about scheduling a meeting and making it happen. Isn't it better to be scheduled for brunch on Sunday or golf on Friday afternoon, rather than waiting for the client to call with a name and phone number, or trying to chase down a referral?
• Face-to-face introductions let you do the Malcolm Gladwell "Blink" thing.  This is especially true in a social context. You can look the prospect in the eye, shake his or her hand, and get a feel for whether or not this person is someone with whom you want to work—BEFORE you try to solicit the business. This can save everyone embarrassment and trouble down the road.

So next time you're preparing to ask for a referral, think "introduction" instead. And let us know about the results you get. We love to hear from you.

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?

Have You Earned the Right to Bring Up Referrals?

A big concern that we often hear from advisors is, "I'm afraid that I haven't proven myself enough to my clients to talk about referrals."

I certainly agree that until someone trusts you and believes in you, there is little point trying to position yourself as someone to whom they should refer their family or friends.   However, it's also fair to say that most of your clients would not BE your clients if they didn't feel this way about you.  Many advisors many advisors feel irrationally insecure about where they stand with their clients. This goes back to the whole issue of undervaluing yourself.

If you generally feel secure about your value to clients but have red flags waving about one client in particular, heed them! Hold off trying to get introductions from that client until you've uncovered what's going on, and if your uneasy feelings are justified.  If you have real reason to avoid discussing referrals with that client, you've got bigger problems than referrals—you've got a client at risk, and keeping that client should be your top priority.  Where they are concerned, worry about the referrals later, and focus those efforts on other clients about whom you feel more certain.

However, if you experience these insecure feelings about most or all of your clients, chances are very good the problem is in your own mind—and you need to do something about that.  In addition to doing some referral confidence-builders, another remedy is to start soliciting client feedback more actively.  You can survey your clients, form a client advisory board, or just ask some good questions at meetings and really pay attention to the answers.

When you do solicit client feedback, stay alert for positive comments. They are door-openers for you to discuss referrals.  For example, one advisor who went through the Automatic Referrals Jumpstart Program was conducting a quarterly review with her clients, a married couple who were both medical technologists, and they were marveling at how well their funds had done.  The advisor had been wanting to penetrate this industry and get more medical technologists as clients,  so she jumped on that opportunity and said, 'Do you know a lot of people you work with who maybe don't have this type of portfolio? What about your trade association?' And they said, 'Of course!  We'll send you the roster.'  The advisor got 50-something names and email addresses and phone numbers because she recognized the client's praise and gratitude as a referral opportunity—and because she knew how to ask for referrals in a targeted way.

The articles listed below (free registration required) are just a few of many resources on Horsesmouth that can help you figure out the best approach to getting more feedback from clients—and open more doors for referral conversations.

Survey Your Clients Now!
The benefits of surveying your clients are enormous, and yet less than 1% of advisors have ever sent out a formal questionnaire. Find out exactly what you're missing by not surveying your clients.

Ask Your Clients, 'How Am I Doing?'
If you're not sure what your clients think of you, ask them. Here's a step-by-step approach to using a client advisory council to elicit the most useful feedback from your top clients.

How Well Do You Listen to Your Clients?
Many FAs have no structured method for compiling feedback. Business practice expert Tom Olivo shares strategies for measuring client loyalty and alerts you to its significance for your business.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Happy New Year!

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

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

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

Network Effectively at Holiday Parties

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

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

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

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

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

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

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

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

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

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

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

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

Do You Have a Referral Personality?

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

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

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

         Trait                                 Rating

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

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

9 Ways to Stop Rudeness From Hurting Your Business

Suit Up! Classic Business Attire Is Back

Energize Your Speaking Style

Want Better Referral Results? Seek Introductions.

I just came across a great little tidbit from the Dallas Morning News (it was published in September, but other papers have been picking the article up since then). 

McCord and Associates, a consulting firm in Houston, conducted a referral survey that confirmed what we found in our advisor survey a couple of years ago: "Referral generation is the cheapest way to prospect for clients and the most effective way," McCord said. "And more than 85 percent of salespeople are atrocious at it. "

McCord also teaches that getting referrals is much more than collecting names and phone numbers. "For me, a referral is an introduction, either a letter, a phone call or lunch," he said. "It's an introduction to someone who has the need for whatever the product or service is and the means to acquire it."  Unfortunately, McCord observes, "too few people take the time to develop the habits to forge these strong relationships."

This concept—that you should be seeking introductions, not names and numbers—is at the heart of the Automatic Referrals process.  Getting introductions requires a much more sophisticated methodology than most advisors employ—but when you learn that methodology, the process is much easier, much less painful, and much more rewarding than most advisors think.

What to Do When a Referred Lead Doesn't Call You Back

1. Just back from Toronto and the Dundee Wealth Management annual advisor conference, where I delivered a referral anxiety breakout session.  It was standing-room only in the 200-seat room—once again demonstrating how pervasive and common this issue is! 

An attendee asked a great question during the Q&A that we hear often from advisors: What do you do when a client gives you a name and number, but you get no response when you call the referral, even when you leave multiple messages?

First answer: prevent the problem altogether by focusing as much as humanly possible on introductions rather than referrals.  Not only will this help you avoid having to track down the referred prospect, introductions are much more potent and effective anyway.

That said, if you do find yourself in this situation, your best bet is to go back to the referral source.  You certainly don't want to whine or act as though you expect them to fix the problem.  What you can do, though, is call to update them on the status of the referral (this is something you should consider doing as a matter of routine; many clients like to be kept in the loop, and the more you keep them informed, the more they will view themselves as partners in your success). 

You can say something like this: "Hi, Joe. You were so nice to refer Dan Rogers to me last week, and I just wanted to keep you in the loop on what's happening.  I've left Dan a couple of messages and haven't heard back from him, but I'm hoping to make contact soon."

One of two things can happen at this point.  The best-case scenario is that Joe will proactively say something like, "Oh, really, Dan hasn't called you back?  I'm surprised, I think he would really be interested in [product or service you offer].  You know what, let me give him a call and suggest he get in touch with you." 

Bingo.

On the other hand, Joe might say, "Oh, ok, well, thanks for the update."  In this case, put in a few more calls to the referral, making sure that they are well spread out—no closer than a week apart. The last thing you want is to be seen as a "stalker" and have that get back to your client. If your calls still go unanswered, you can get in touch with your referring client again. "Joe, I wanted to thank you again for your referral to Dan Rogers.  Unfortunately, I still haven't been able to get in touch with him."

At this point, you can take the conversation in a few different directions based on how important this referral is to you, how strong you believe the referral was to begin with, your source's response when you first called him to update him, etc. 

One direction: "I don't want to be a nuisance, so I won't be calling Dan for a while. I will plan to get in touch with him again in six months or so to see if the situation has changed at all. But I do very much appreciate the referral."  Joe may shrug his shoulders and simply appreciate that you kept him updated on the situation. Remember, not every referral works out. It's always better to walk away than to risk hurting your relationship with the referral source. 

Alternatively, if you believe the situation warrants it, you could actually ask Joe for a face-to-face introduction at this point, or ask if he has any ideas about how you might be able to reach the prospect, or if you can pick his brain about specific issues that might resonate with Dan.  He might even offer help proactively because he thinks it's a shame that you haven't been able to connect with his referral.  In this case, he might offer to make a call on your behalf, or introduce you to Dan personally.

But to reiterate, the best way to remedy the problem of unresponsive referrals is to avoid it altogether.  Start asking for introductions instead of names and numbers. You'll get better results all around.

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.

Referrals: Are You Worthy?

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

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

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

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

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

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

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

Get Over Your Sales Shame to Get More Referrals

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

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

Robert writes:

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

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

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

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

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

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

Robert Middleton continues:

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

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

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

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

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

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

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

How to Escape from the Endless Networking Loop

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

Peter wrote:

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

Nicole Coulter offers this response:

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

Here are a couple of suggestions:

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

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

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

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

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

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

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

Some networking essentials

The Street.com recently featured an article from Entrepreneur magazine, "Upgrade Your Ne