We all know that the number one way to grow almost any business is by getting referrals. It not only helps grow the business quickly, but it is inexpensive. It’s been said before that a referral from a client is the highest form of compliment. If all this is true about referrals, how can you get more of them as an advisor and business owner?
Stop asking for them!
Very few of your clients are excited about your asking them if they can give you the names of four colleagues that you can talk to. That is so played out and offensive to the person sitting on the other side of the table. The Northwestern Mutual technique is dead—or it should be. Even if it works, you don’t want to grow your business that way.
I have never asked for a referral in the many years I have been in the financial advisor industry. That said, I feel most of our new clients come from referrals. I can almost guarantee that if you start handling yours similarly, the closing rate on those referrals will increase like crazy!
So what is the secret? Seriously, stop asking for them. For every client you get, work hard to provide the best experience you can. Go over the top. Do your best to completely knock them off their feet with the service, plan design, and detail you provide. Get them excited about where they are going, and their potential. Finally, show them how excited you are for them. Ensure they know you will be one of their biggest encouragers moving forward. If you do that well, the client will say something like, “We have got to get you in front of more people!” They may even ask you, “What type of client are you looking for?”
Don’t get sucked in. You now have a decision: be common or uncommon.
Common advisors say something they have rehearsed repeatedly to get a person to think of specific names of high-net-worth individuals. That approach might get you in front of some people, but I bet your closing percentage on those people will be small.
Here is an uncommon approach that will help you with your closing percentage. As a side note, this should be genuine, not rehearsed.
“I am honored that you want me to talk to your family and friends. I think the most effective way I have seen work is by being enthusiastic about your plan. Let people see and hear your testimony about where you were and where you are now. That enthusiasm is contagious. I know first-hand because I have been in the same room as you as we were helping shape your future. If you want to introduce me to others, continue to be excited, and when someone asks you about your plan, just tell them (as much as you feel comfortable). If the person is interested in what you are saying and would like to be in a similar spot, they will ask you about the person/advisor who helped you, and that is when you can introduce me. You could go as far as saying that I will have Phillip reach out to you.”
Those people are now really leaning in when they sit in front of you because they have seen someone they know who has benefited from your advice.
That is an uncommon approach, but it is also empowering to your client. They must know their own plan and the traction they now have. They also feel like they have a vested interest in your practice because they finally know how to help get people in your door. Everyone likes to help people, and they will feel honored to do so.
Go be uncommon.