Trending
Do new clients come to you or do you need to find new clients? In my opinion, one of the defining characteristics of a “professional” was they did not need to seek out new business. Clients came to them. Accountants, lawyers and physicians fir into this category. I think a turning point came with the arrival of the TV series, Boston Legal.” (2004) When considering an associate for a partnership, they would ask: “How much new business are they bringing into the firm?” Today, finding new business is part of the job description for many fields.
I would like to believe most financial advisors and insurance agents despise prospecting and try to avoid it. I know I am wrong because I have met fellow professionals who enjoy the thrill of the hunt, finding new business.
One of the historically effective ways of getting new clients is through referrals. In an ideal world, your client does all the heavy lifting, the phone rings and someone says: “Joe sent me.” How do you get this to happen?
1. Start with an assumption. You need to believe your best clients want you to succeed. They want to help you grow your business. They might not know how. You need to make it as easy as possible for them.
2. Do they know you are adding clients? This sounds ridiculous, but it is basic. You must assume your current clients do not know (or remember) where your clients come from. They might think you are “full up.” This sounds basic, but referring business might not be on their radar until you tell them.
3. Remind them how you helped them. You have done a good job for your client, but they might be so comfortable with you, they do not remember the details. A lawyer might get a client off a murder charge. A surgeon might save a patient’s life. Money management isn’t that dramatic in many cases. They had an issue or a problem. You addressed it. Who else has a similar problem?
4. Family comes first. You have heard the expression, “Selling up and selling down.” Your client likely has influence over other family members concerning advice. Who do they know within the family that could benefit from the kind of advice you have been providing for them?
5. Adding a sense of urgency. Your client might not be referring business because they think you have unlimited capacity. The high quality of service you deliver might be because your clientele is not as large as they think. They might think your clients number in the thousands. Is it the hundreds? Do some analysis. How many large relationships similar to theirs might you be able to add without straining your service model? Is it under ten? Let them know. They might assume those few slots will fill up quickly.
6. Avoid the word “referrals.” That is an expression within the category of industry jargon. Do they know someone you might be able to help? Is there someone they think you should meet? You might ask: “How well do you know (name)? They are the type of person I may be able to help.
7. Be specific in your requests. Imagine you sold men’s suits. One person says: “I’m looking for a suit.” Another person says: “I am looking for a single breasted light grey suit in size 42 long. Which do you think the salesperson will find it easiest to address? If you say: “Do you know someone you think I can help” their mind might go blank. If you ask: “Who else at your company is retiring in the next six months” names will come to mind.
8. Teach them how to ask. Let us start with how not to ask: “My advisor is looking for new clients. He asked if I knew anyone.” There is no benefit to the prospect. You might suggest they say: “I had this (problem). I found a financial advisor who was able to address it. I am happy with the result. You have the same problem. Would you like to meet them? You can see there are benefits for the prospect.
9. The appeal of the in-person introduction. When someone is given your name, you don’t know if they will call or not. Contacting them might be awkward because of the DNC rules. If you can arrange to meet with your client and their friend over coffee, you have the opportunity for a low-key introduction. This is why the client/prospect dinner strategy has been effective.
10. Avoiding awkward moments. You don’t want not give your client a script, but it helps to coach them beforehand. If they come across as blunt or heavy handed, their friend might ask why they are touting for business for their advisor. Are they getting paid a finder’s fee? That can put them off ever trying to send a referral again. You want something like: “You mentioned you had a problem. I have an advisor I like and trust. He has helped other people with a similar problem. He might be able to help you too. Would you like to meet him?”
Your clients should want to see you succeed. They can act as your ambassadors if they know what to look for and how to bring your name into the conversation.