Q: I'm not getting enough business from my referrals. How can I make them more fruitful?
A: One easy way to grow your book of business is to target high-net-worth clients. If you don't have experience in this market, it might sound difficult -- but by investing a little time and money, this isn't as hard as it sounds.
To attract high-income earners, you need a referral strategy that is both creative and sophisticated. One powerful approach is to host client-appreciation events. Here, I look at a few ideas that top producers have employed with great success.
The "magic bus"
Once a year, Don Zane charters a luxury motor coach for his clients, and they all head off to Chicago for a Broadway-style play, gourmet meal and a stay at a nice hotel. All of his high-net-worth clients pay for the trip. Don and his staff merely handle the travel arrangements. He gets his clients a great deal.
Now, here's the kicker. Don urges his clients to invite other couples that are not his clients. Of the 20 couples that go each year, 10 are clients and 10 are prospects. So, for about 36 hours, Don is the grand host to prospects who fit his profile. They get to know each other and like each other. They see how he relates to his existing clients and they like it. In fact, Don says he's batting at least 90 percent in converting these prospects into clients.
Hit the slopes
David Worth is a top-producing rep who also happens to be an Olympic-caliber skier. Every year, he organizes a ski junket that has catapulted his practice to the top. David's clients pay for the junket, but in a creative way. The price of admission? Five referrals to David. If the referral prospect goes on the junket, that's worth three referrals.
On one recent trip, David netted over 400 referrals. He said, "Getting your clients involved in your practice and your life shields them against the competition."
It's party time!
One of the time-tested strategies in this vein is client appreciation parties. Some reps like to make them client-only events, while others encourage inviting friends or colleagues (aka prospects). One master of the client appreciation party is Jeff Chandler.
Every year, Jeff hosts an incredible party for his clients. He has a tent set up on his five-acre property and brings in a band and a comedian. The attendee list has grown to over 300, and it continues to grow. In fact, it's the event of the season.
Jeff says that many of his colleagues don't understand why he spends so much money on these parties. They don't grasp that hosting this event each year is a powerful investment in his practice. First, the parties solidify his relationships with his clients. Second, they stimulate a significant number of referrals.
A client's lifetime value
All things being equal, people do business with their business friends. All things being not-so-equal, people still do business with their business friends. This is why I often talk about the lifetime value of our clients. The lifetime value of a client is not just the business you do with them over a lifetime, it's also who they can introduce you to over a lifetime. One way to ensure those introductions is to build as many business friendships as possible.
Appreciating your clients for their business does three things. First, it helps you build a business friendship. Second, it shields your clients against the competition. And finally, it generates referrals, both directly -- when prospects come to your events -- and indirectly, as you become more referable.
Bill Cates is the author of "Get More Referrals Now" and "Don't Keep Me a Secret!" Referral Coach International helps financial professionals grow their business by attracting more high-quality referrals. Bill is a frequent contributor to the Agent's Sales Journal, and can be reached at info@ReferralCoach.com.
