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Stop for a second to calculate how many conversations you’ve had with clients over the years as a financial advisor. It adds up fast. Over time, those focused conversations developed your expertise.
The same applies to me.
As a referral coach for financial advisors with 18 years of experience, I have had hundreds of thousands of hours of referral conversations. I have helped my clients work through every referral situation one can imagine.
Still, I continue to ask clients to explain where their new business comes from, especially referral business. The vast majority respond by saying, “clients and COIs.” No doubt that client and COI referrals are very important to a growing practice. But what about all the other components of your referral network beyond clients and COIs?
Don’t succumb to wearing referral blinders.
Referral blinders keep you from seeing money on the table (referral opportunities) all day, every day. They limit the view of your referral network. Referrals from current/past clients and COIs are absolutely wonderful, so long as they’re the right kind of referrals. But take off your referral blinders and consider who else might be able to refer you and consequently deserves your attention.
One additional component to focus on in your referral network are the businesses you’re personally supporting. Take a few minutes to add up how much business you have given to those companies or individuals over time. Ask yourself: Which businesses have you referred business to over time? Which of these businesses are local to you? When is the last time you asked any of them to support your business in return?
Here are a few examples of how those business owners could potentially be considered a referral source for you.
Do you have a pet? If you’re like me, you could say that you personally funded the west wing of your veterinarian’s office over the years. And, if you like this vet, you probably referred her a few clients over the years, too. Have you ever considered asking the vet to support your business as well? It’s not too late to ask!
Let’s say your vet emails a quarterly newsletter to her clients. Why not consider an article for the vet’s publication that spells out the financial considerations of owning a pet or the best places to retire that are pet-friendly? I suspect that the vet would appreciate the time saved not having to find material for that quarter and you would appreciate the exposure to her clients. Or maybe the vet would allow you to place your materials in their lobby or offer a workshop to her clients for a client appreciation event? All you need to do is ask.
Another example is your hairdresser or barber who has cut your hair for the last 12 years. You have sent five of your family and friends to this person. How difficult would it be for the hairdresser or barber to have your business cards or brochures placed in the waiting space for their clients to pick up at will? Or perhaps you and the hairdresser could work together to create a “Make Over Monday” event where you speak about financial makeovers.
One of my clients, Joan, approached her yoga instructor to develop a joint wellness event where she presented on the topic of financial wellness. This got her great exposure to a new audience of middle-aged working women (her preferred clientele), gave her an easy way to connect with this audience by having something in common and provided her with an opportunity to further develop the yoga instructor into a genuine referral source. Joan also offered a free financial consult and secured numerous appointments.
People you do business with are only one other element of your referral network beyond clients and COIs. You might be thinking to yourself, “Great, but what if they say no?” My thought is – what if they say yes! If you’ve helped another business owner grow their business and they say no to helping you in some way, how much longer will you continue to support their business? Would you accept a one-sided personal relationship? Why accept anything less in business?
There’s more beyond your blinders. Take them off and see the referral opportunities you might not have noticed before.
Michelle R. Donovan is a speaker and co-owner of Productivity Uncorked LLC, a coaching firm that helps financial advisors develop a disciplined referral process while getting more accomplished in their day. She has written a Wall Street Journal Best Selling book, The 29% Solution (published in seven languages) and an Amazon Best Selling book A Woman’s Way: Empowering Female Financial Advisors to Authentically Lead and Flourish in a Man’s World. To schedule a free 30 minute call with Michelle, reach out to her at [email protected].
Read more articles by Michelle R. Donovan
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
