Ask for introductions, not referrals

Agents and financial advisors say the best way to build your practice is by referrals, but I know I have been reluctant to ask for referrals because I am afraid my clients will say no. According to an article I read recently, 83 percent of clients said they are comfortable referring friends and family to their advisor, but only 4 percent said they would take action and provide a referral.

Client confidentiality may be a problem, which indicates a lack of trust. If this is the case, we haven’t done a very good job with our client, and we need to determine how to resolve this issue. 

See also: 7 tips to gain trust

But what if we ask for the referral in a different way? If we ask, “Who do you know who could use our services?,” we might expect an answer of “no one.” Instead, maybe we should ask them who they use for various services.

Most of my clients are business owners who use many different vendors in their business, so I ask who their vendors are. Who do they buy their trucks from? Where do they buy their uniforms? Who are the raw material vendors for their firm? Who provides their IT services? Who are their law and CPA firms? Where do they buy their office supplies? Who owns these various firms?