Let’s Begin with a Few Questions!
1. Can you imagine a cost effective and inexpensive way to receive a steady stream of quality referrals?
2. What if you adopted a consistent “systematic approach” to receiving referrals?
3. How much new business could this mean to you?
Well, in a recent industry study, 80% of people who work with financial advisors say they would recommend their financial advisors to others.
It is, was and always will be important to your business. Remembering way back to when I started in the business (think DOW at 776!), my sales manager used to say, “Remember, sales may keep you in business, but referrals will keep you in sales!” Well over the years in my travels across this great land, many successful advisors have shared some of their greatest referral ideas with me. Today, I’d like to begin sharing them with you in order to help you make 2014 your best year yet! Next week I will share a few more ideas. Let’s begin with the three reasons why clients do business with you:
- They like you
- They trust you
- They respect you
How your clients feel about you and what they are prepared to tell others about you and your firm can really increase your revenues!!
I have learned over the years that clients acquired through a referral are typically more profitable, invest more money and invest more frequently. They also tend to be more loyal. The most successful advisors I know have positioned themselves as “the resource” for their clients. They want to provide the most relevant, timely and high-quality answers to their client’s questions. Receiving a regular stream of referrals is an extra side benefit. So how do you turn on this perpetual referral machine?
There are three strategies to cultivate referrals:
- One at a time
This week I’d like to focus on four passive ideas I’ve run across…
I hope you find these ideas useful as you jumpstart 2014. We’ll cover two other strategies in next week’s post.
Michael F. Sciortino, Sr.
Executive VP, Managing Director, Head of Distribution
CMG Capital Management Group, Inc.