Offer your help,
rather than asking for a referral, and make that offer to people with whom you
have a genuine connection
Dec 3, 2018 @ 3:05 pm
By Joe Duran
At the Schwab
Impact conference in Washington, I was on a panel discussing client experience.
One part of the discussion caused quite a stir in the media, both traditional
and social.
While sharing our
thoughts about wealth management, I made a pejorative comment about how our
industry asks for referrals and the absurd "how to get referrals"
education many of us grew up with.
I sincerely believe
that the way most of us have been taught to ask clients for referrals is
demeaning and insults our profession. Imagine if, after curing you of cancer,
your doctor asked you for a referral by saying, "Now that I've cured you,
can you introduce me to your friends or coworkers that might need my
service?" or, "We grow our business by receiving referrals from our
valued clients. Do you know anyone else we should work with?" Asking for
referrals in this way is embarrassing for you and for your clients.
Isn't it ironic?
Referrals are the
No. 1 source of growth for most advisers, and our national firm is no
exception. Heck, just this year we've obtained over $1 billion in assets under
management in referrals already. Am I being hypocritical by talking down about
something that gives us so much benefit? I hope not. Referrals are the
lifeblood of our profession. However, I think there is a far better way to get
referrals that isn't quite so "icky."
4 insights on growing
by word of mouth
1. Understand your
value. In the past, most advisers made their living selling
investment products, like salesmen in a transactional relationship. That's when
the original referral language was developed. Today, most advisers in wealth
management have insights that go way beyond investing. They have a
professional, long-term relationship with clients. Their knowledge and time
are valuable.
Whether it's
figuring out the most efficient wealth transfer strategy or helping somebody
manage their financial life through a divorce, most advisers have important
skills that can help people avoid costly mistakes. That's something to be
treasured by your clients and their friends.
2. Check your
intentions. Is your primary goal to make more money or to help more
people? Your intentions matter. You can grow your firm the "old
school" way of asking for referrals to find more clients and make more
money, or you can help your dearest clients take care of their closest friends.
As nuanced as the difference might appear, it changes everything.
Your intentions
determine how you frame and approach the topic of referrals. If you offer your
expertise to help your clients' friends, they will view your service as
something to appreciate, not something to dread. If your primary goal is to
help people, that intention permeates the organization and drives a mindset of
service that makes you more referable whether you ask or not.
3. Offer your help
in the right way. Offer your help, don't ask for a referral. Here's a simple
example: "Jen and Steve, if you're ever in a situation where someone you
care about needs my help, I want you to know that we're here for you to have a
call and help them in any way I can. I might not be able to take them on as a
client, but we can at least give them some guidance and help them to avoid
making big mistakes." By doing this with a genuine intention to help, you
offer an act of service instead of asking your clients for a favor. Imagine if
your doctor or lawyer offered this service. You would be grateful, not
painfully uncomfortable, right?
4. Offer your help
to the right people. If your clients aren't comfortable telling their friends
about you, it could be that you have not yet done enough to help them. Be
selective. Make it a privilege. Offer your time to people with whom you have an
authentic connection, folks who really love working with you and on whose lives
you've made a big impact.
While your time
might occasionally be spent on a call with a person who will never be qualified
to be your client, such as an irresponsible brother-in-law, your clients will
not abuse this service and will genuinely appreciate you. They will return your
favor with their loyalty. It goes without saying that some of their friends
will be people who end up becoming clients.
The secret to
never-ending referrals
Do great work! The
advisers who do the best work also get the most referrals. People aren't going
to talk about their financial plan with their friends, but they might talk
about a unique problem you helped them solve. They might say, "She got my
husband to agree to go on a three-week European vacation!" or "He got
my wife to get comfortable with retiring early!" or "I don't know how
we would have dealt with my dad's death without their help!"
When you help
people in a way that is specific and makes them feel special, they are going to
share it with their friends in the way we all do: by telling stories about
someone who really helped them.
Joe Duran
is founder and CEO of United Capital. Follow
him at @DuranMoney.
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