Let’s start with the truth. Not all clients like to give referrals. For some of your clients, you could run into a burning building and save their children, and they still wouldn’t give referrals. And you know what? This has nothing to do with you. It’s their “stuff” around referrals. It’s their fear, or guardedness or past bad experience that keeps them from playing the referral game. It is not a reflection on you and your relationship with them.
What does “no” mean?
When a prospect or client says “no” to you (in all the forms that “no” can take) what do you make it mean? The thing that gets a lot of advisors in trouble is that they attribute too much to that little word. They make “no” mean too much and then do everything they can to avoid the words. All I can say is, “Get over it.” No one likes to hear “no,” but we just have to move on quickly.
Look, you have choice. You can live your life and your career afraid of rejection, or you can make a decision to not let it run you; feel the sting and move on as quickly as possible. Here’s what I do. Whenever I get rejected – me, my idea, whatever – I say to myself, “Ouch. I didn’t like that.” Then I move on with my life. If I find myself dwelling on the rejection, I snap out of it. I change my pattern of thinking and/or I change my “state” – by exercising, listening to some upbeat music, etc.
So, first and foremost, you have to stop taking “no” so seriously. Sometimes a client may be rejecting you, but in most cases they are really just rejecting the idea of giving referrals. I know from years of experience that by using our VIPS Method(TM) for asking for referrals, you can ask almost every one of your clients for referrals. Some will give them to you right on the spot – on your terms. Some will not give them to you then, but will give you referrals later – on their terms. And some will never give you referrals at all – ever! You’ll never hurt a relationship by asking. If they say “no,” you simply back off, plant a seed, and move on. You will never lose a relationship asking for referrals with our methodologies.
When to back off
The topic of this article is very targeted. How do advisors back out of their referral conversations? When do you back off? We’ve found that when people know when and how to back off from their referral request, they have the confidence and courage to ask more often. Knowing how to back off in a professional manner, will not only keep the relationship on good terms, it will often make the relationship a little bit stronger. The secret to asking for referrals more frequently is not just in knowing how to ask for referrals, it’s knowing how and when to back out of the conversation in a confident and dignified manner.
Have you ever been on an appointment and asked for referrals, have the client not open to that idea, and you didn’t really know how to back out of the conversation and the meeting ended on an awkward note – for both you and your client? Not a good feeling is it? Do that a few times and you’ll definitely stop asking for referrals. Knowing when and how to back off can make all the difference in the world for you (not to mention your clients).
Here’s my simple rule of thumb. You ask for referrals. If you get a little resistance or concern on the part of your client, your instinct should guide you to explore their perspective. Be genuinely curious by what they really mean by their uncertainty. Sometimes you will learn that their perspective contains unfounded fears that you can alleviate. But you must hear them out first, before you share your perspective. If at any point in this conversation you hear a second objection, they repeat their first objection, or their body language or tone changes, it is time to back off. You can’t push them for referrals. If you do, then you run the risk of hurting the relationship or, at least, hurting the chances for referrals later. Two pieces of concern or resistance and you’re out of there!
How to back off from a request for referrals
You want to back out of your referral conversations in a way that maintains your feeling of confidence. Do you remember the deodorant commercials that used to say, “Never let them see you sweat”? That same concept applies here. You go into the referral conversation with confidence. You explore their concern with confidence. And, when necessary, you back off with confidence. When you maintain your confidence, your clients will feel much better. When you get uneasy or nervous, that’s when they really start to feel uncomfortable.
The best way to illustrate this concept is with a sample conversation. I think this will really bring this concept home for you:
YOU: “I was hoping we could brainstorm for a couple of minutes to see if we can identify some people who should know about the important work I do. Could we try that for a minute?”
CLIENT: “I don’t give referrals.”
YOU: “I understand. I know that some folks don’t like to give referrals. Can I ask you a quick question about that?”
CLIENT: “Well, I guess so.”