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For years, referrals were seen as validation for advisors: “I’ve made it, I’m good at what I do, I don’t need to market myself,” a safe non-selling zone for many advisors.
As referrals flowed in in, there was a sense of relief that you could keep your foot on the brake and not have to worry about stepping on the marketing pedal to accelerate your practice.
But waiting for your phone to ring for a referral is no longer the safe zone it once was, unless you’re happy depending on an unpredictable and passive model to grow your business.
Here’s why…
New advisors are coming into the market every day, and even though they’re “new”, they have the same tools as you, the same designations, and offer the same services... and in the eyes of your prospects, they appear to be on par with your level of experience and expertise.
Your prospects now have an abundance of options they never used to have, and they don’t have to do much to exercise them either.
A quick search on LinkedIn will bring up hundreds of financial advisors to choose from in a split second.
In fact, it’s likely that during a sales conversation with a new prospect, you’re only one of a list of advisors they’re planning to speak with.
This is a very different scenario from how you got to where you are in your business, before the industry became commoditised.
In the early days, having extensive experience, core domain knowledge, and an inner circle of contacts, were the main barriers of entry into the market, and once you overcame them, you were in a strong and dependable position.
But technology and the internet have removed those barriers forever, and that once strong and dependable position is no longer secure and predictable.
It’s not that your knowledge and credibility are no longer essential. It’s that in a low-barrier entry environment, there are many other advisors who can claim to have them also.
And since your prospects can’t experience your knowledge and credibility until after they’ve become your client, relying on it in your sales process or as the basis for referrals, can no longer produce a predictable flow of inbound high-net-worth opportunities.
Relying on referrals alone is no longer enough to guarantee business growth.
There are simply too many other advisors they can choose from, who are doing exactly the same thing.
If you’re still generating a comfortable flow of clients from referrals and you’re wondering what all the fuss is about, it’s time to take seriously that the strategy that got you to the position you’re in now, will not keep you there.
If you’re seeing fewer referrals this year than last year, then now is the time to re-think how you’re positioned in your market.
Are you positioned based on your knowledge and credibility, which puts you alongside everyone else and forces you to prove and sell yourself?
Or are you positioned as a Trusted Authority, so that you’re perceived as different and truly differentiated in the minds of your prospects, before they have a sales conversation with you…that is the answer you need to discover as soon as possible.
If you're ready to stop relying on referrals and start positioning yourself as a Trusted Authority, order your complimentary books and consultation below.
Related: Stop Selling Solutions — Start Solving Problems
Get Ari’s 6 best-selling books for FREE here and you’ll also receive a Complimentary Sales and Lead Generation Consultation (value $995.00). Ari Galper is the world’s number one authority on trust-based selling and is the most sought-after high-net-worth new client acquisition expert for financial advisors. His latest books "Are You Chasing Ghosts", "Trusted Authority" and "Trust In A Split Second" have become instant best-sellers among financial advisors worldwide, get your free books here.