Asking for referrals is an art which advisors need to master.
We all know that one of the most easiest and effective way to grow your clientele is through referrals. However, asking for referrals in itself is an art which advisors need to master. A research note titled ‘Referral-Generating Techniques of Top Financial Advisors’ published by Advisor Group gives insights on what should advisors be telling their clients.
Targeting a specific prospect: “I would like to get to know more about (prospect) and then, if it makes sense, obtain a personal introduction from the right person. What do you know about him/her? How did you come to know this? Are you a personal acquaintance? Do you have mutual friends? Do you travel in the same circles? Would you mind introducing me to someone who could help me get closer to (prospect)?
Targeting a specific prospect (alternative method): “I would like to get to know [prospect] and offer my services. How well do you know him/her? What would be the best way to be introduced? Would you be a good introducer or do you know someone else who would work better?”
Targeting a specific type of person or financial need: “Whom do you know that is planning on retiring in the next 12 months? Whom do you know that just sold a business? What else can you tell me about that person? Who might be the best person to provide an introduction?”
Describing your referral policy: “Mr. or Ms. Client, I want you to know how I treat any referral that you give me. I will mention your name only if you give permission, and only in a way that makes you comfortable. I will introduce myself on the first call, and if no interest is shown, I will not continue at this time. My goal in this first call is always to make a personal connection, never to sell a product or service. I want this referral to reflect well on you — because I appreciate the fact that you are helping me.”
Identifying a network: “I’d like to meet (prospect), but I’m not part of his/her crowd. You know more about that group that I. Who in that group would you approach for purposes of getting an introduction? Why do you think that person could be helpful or influential?”
Calling a center-of-influence (COI): “(Referrer) suggested that I call you and introduce myself. (Referrer) felt it could be helpful if you know who I am, what I do, and the kind of clients I work with. I think that there might be some ways that we could help each other, if we knew each other better. Do you have a few minutes to get acquainted?”
Following up a LinkedIn invitation to connect: “I’ve sent you an invitation to become a connection on LinkedIn. I believe that we each could mutually benefit from this connection, and from the exposure to each other’s existing connections. I’m also hoping that we can spend some time getting better acquainted offline, in person or by phone.”
Getting a target prospect’s attention: “(Referrer) suggested that I call you, and I’d like to tell you why. I was talking to (referrer) about the types of people I would like to meet. (Referrer) said: ‘Call (prospect). He/she is exactly the kind of person you’re looking you want to meet.”
Advisor Group is one of the largest independent broker-dealer networks and a division of AIG Financial Distributors.
