Updated Friday, August 1, 2014 as of 7:54 AM ET
Blogs - The Prosperous Advisor
Sounding Off: What's the Best Way to Generate Referrals?
Friday, February 1, 2013

Ask in the right way: There are a couple of “right ways.” One excellent method is to understand why clients refer people to you. They do so because they want to help someone else. So, ask by saying, “Who do you know that you want to help? Who do you know that is not getting this client experience? Introduce them to us so we can help them in the same way we are helping you.”

Ask with great comfort, confidence, and conviction: This is a special ingredient to the mix. You must have an authentic belief in your own story and then transfer that confidence to others.

Provide a comfortable, nonthreatening environment for your clients to make the introductions. Smaller, more intimate prospecting events are a favorite method for me. Lunch dates, golf foursomes, and any activity you all enjoy will also work well.

The above recipe is easiest implemented with your advisory council members. You have spent the most time with them and part of that time has been sharing the above recipe.

Just as blocking and tackling wins football games, asking for referrals works. It is simply about executing the recipe and all of its ingredients. So, please keep, or start asking for referrals. But before you do, make sure you have all of the ingredients and understand how to communicate them to your clients. Clarity on your story is needed. And, practice, practice, practice is also required. Role playing with a colleague or your coach is a great way to be sure you start to receive the referrals many of you deserve. Because Lombardi also said, “Practice does not make perfect. Only perfect practice makes perfect.”

What do you think?

Ron Carson is Founder and CEO of Carson Wealth Management Group, a comprehensive wealth planning firm, and Founder of Peak Advisor Alliance, the largest advisor coaching program in the country. He also co-authored the practice management book Tested in the Trenches: A 9-Step Plan for Building and Sustaining a Million-Dollar Financial Services Practice and its revised second edition Tested in the Trenches: A 9-Step Plan for Success as a New-Era Advisor.

(2) Comments
I lost interest when the article started down the road of "It is imperative that clients know you will be selective with your growth".

Americans are hurting financially, and although we need to consider our time as a valued commodity, holding yourself out for just wealthier clients is part of the problem in this country.

The financial services industry has been dessimated over the past 5 years, and now more than ever there is a need for industry growth. Laying the foundation for selecting clients based on any specific details is not helping the issue.

I was listening to a wholesaler teach about client profitablity, and deciding when to FIRE your less profitable clients. It makes me sick to think about the greed that drives the corporate side of the industry. If there is going to be a difference made in this country, it will not start with firing clients.

Referrals are good. ALL of them. Let us try to make a difference for this country.

Posted by Jon C | Saturday, February 02 2013 at 11:59PM ET
Your best source of new business is referrals from happy customers and clients. Try to know their problems and sort them out. They will automatically promote you in social circles.
Posted by KIMMY B | Wednesday, December 11 2013 at 9:49PM ET
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