Advisors love it when clients recommend them to family and friends. After all, referrals are the most reliable sources of new business. This aspect of the advisory business is important enough to warrant an occasional refresher course. Here are a few core principles of a referral-based practice:
- If they are uncomfortable broaching the subject themselves, ask if you can mention their names as existing clients.
- Should they want to approach the contact themselves, provide a thumb drive with an article or blog you have written that might be of interest to the prospect.
- Finally, offer to take your client and the prospect out for lunch, a round of golf or a client event. This rewards your client for the referral and provides a no-pressure context for demonstrating your expertise.
Remind clients of your willingness to help referred prospects, and when they encounter someone who needs financial advice, odds are they’ll think of you.
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