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The Art of the Referral

You will hear this your entire career: increasing your ability to gather referrals will make your practice more successful. Establishing referrals early in our career is even more important. But the reality is that many of us don’t put a lot of emphasis on referrals and do not learn this early in our career. How great is a warm referral from a credible source like a client or another professional?

There are two reasons why we lack successful referral methods. First, there is risk in the referral—there is risk for you and there is risk for the person making the referral. Second, it can be awkward asking for it because people feel the sales aspect of it. As great as it sounds it is simply not that easy.

How do we present a more effective referral? First, we can focus on who it is coming from. Work on developing a professional relationship with a person who can provide consistent dependable referrals that fit your perfect client profile—that may be a CPA or estate planning attorney. Identify that person and develop the relationship with the emphasis on what you provide compared to another adviser. Attention to detail, technology in your practice or an advantage you will bring to that professional. This type of relationship, and referrals from these types of professionals, are invaluable.

Take the sales feeling out of the asking for the referral. Don’t use the typical cliché “is there anyone else you know who could benefit from my service or our relationship?” This has been used hundreds of times. Put your asking for the referral into context so the client doesn’t feel it as a sales ploy but a real offer to help.

Try this: ask the client if they are the beneficiary of someone’s estate. Ask them if they understand how the estate is set up to transfer—most think they do but really don’t. Ask them if the beneficiaries are clear on the transfer of their estate. There are many things they may not be aware of but need to understand. Now instead of saying “Great, please refer me to them so I can help,” say, “Let’s bring them together so we can make sure it is crystal clear and nothing is left for interpretation.” This will bring the referral right to you in a no risk opportunity. A review of information for your client with the referral in the room to help facilitate that explanation will show the true value of your detail and help you gather more referrals. This is a unique approach that many advisers don’t take advantage of.

Building a successful referral method will take time, but if you start to perfect this early on in your career it will be promising and fruitful from the start.
scott-huff

Scott Huff
CEO of Yourefolio and an IAR of JK Investment Group
Cleveland, Ohio

 

Editor’s note: FPA members receive $200 off Yourefolio software, plus a money back guarantee.