Many experts agree: You should ask your clients for referrals. But you can't ask every client every time you meet with them. So following are six proven ways to earn referrals from your clients.
About 70 percent of the time, these techniques will motivate your clients to give you referrals at some point. However, you can expect that about 30 percent of the time, these techniques will generate referrals right on the spot.
1. Reminder of confidentiality
Some clients are reluctant to give referrals because they fear that information about their financial situation may be shared with others. Here's a way you can set up referrals and handle any objections at the same time:
"George, there's one thing I want to run by you. Many of my clients like to introduce me to those who they think would benefit from my service. I just wanted you to know that, should that opportunity present itself, the work we do here is always kept confidential. I will never tell them about your financial situation, and vice versa."
2. Who you best serve
One reason why you may not always get the type of referrals you want is because your clients aren't clear as to whom you serve the best. First, don't be vague or overcomplicated. Then, communicate to your clients within the market you serve in a low-key way that will invite more referrals.
"I thought it would be good for you to know who would most benefit from my services. These days, my practice is geared toward successful couples such as yourself. They usually have children, but not always. Generally, they have a combined income of more than $100,000 -- and some of my clients are even in the $400,000-plus range. While I don't expect you to know someone's exact financial situation, you probably have some idea and can refer those suitable prospects to me." [Note: Every financial professional's ideal client profile is different. Insert yours into this template.]
3. How you'll contact them
In addition to confidentiality, another major concern among clients is how you will handle the referrals they may provide to you. You can alleviate their concerns and motivate them at the same time. Later, when you directly ask them for referrals, they will already know how you intend to handle them.
"I don't like to surprise people with a phone call out of the blue. I've found that everyone feels most comfortable when they know I'll be contacting them and have a sense of why I'm doing so.
"So, if you identify someone you think I should contact, please come to me first. Together, we'll figure out the best way to approach these prospects. We'll do it in a way that suits your relationship with the prospect and that feels comfortable and natural to everyone involved. If they are interested, great. We'll meet for a no-obligation review -- such as I did initially with you. If they decide that they don't want to move forward, I assure you I won't pressure or pester them.
"If someone brings up their need for financial advice or other related services, ask if they'd like me to call them. I've found that sometimes it's best to be proactive in order to get people to take a look at available services."
4. "Don't keep me a secret"
I've been teaching this simple phrase for more than a dozen years, and I've been impressed with two things: 1.) how many financial professionals are using this phrase with great success, and 2.) how often it results in a referral conversation right on the spot. It never hurts a relationship. You're not going to say to a client, "Please don't keep me a secret" and they'll respond, "I can't believe you said that. Give me my check back." Try saying "Please don't keep me a secret" to your clients at the end of value-oriented meetings. Add it as a P.S. to your handwritten notes. You can even add it to your email signature file and your voicemail.
5. Willingness to give referrals
This is a great technique to start a referral conversation with anyone who is a small-business owner, salesperson, or relies on referrals. You can use it with your prospects, clients, friends, people you meet at social functions, and even neighbors at your kids' soccer games.
"Frank, you sound like you do pretty good work for your clients. Tell me: If I ran into a good prospect for your business, how would I know it, and how would you like me to introduce them to you?"
When you demonstrate a genuine willingness to give referrals, many people will reciprocate. This can be a great start to a productive center-of-influence relationship.
6. Celebrate referrals
Every time you meet a new prospect through a referral, make a big deal about it. Talk about the person you know in common. Tell them, "It's great that Tom introduced me to you. When I meet folks through referrals like this, it leaves me with more time to serve my clients, instead of spending time looking for clients. Make sense? And, quite frankly, it's how most people prefer to meet their financial advisors."
Bill Cates is the author of "Get More Referrals Now" and "Don't Keep Me a Secret" and the president of Referral Coach International. He can be reached at info@referralcoach.com. For more information, visit www.referralcoach.com.
