Most financial advisors know that a referral, especially one that comes with a solid introduction, is the gold standard for acquiring new clients. The best sources for these referrals are centers of influence or professionals with whom you work (such as an accountant or attorney). Unfortunately, very few advisors receive a regular stream of high-quality referrals from such sources.
Meet Larry the plumber. Let’s see how he handles referrals. We may get some valuable clues.
The call. Larry receives a call from a satisfied customer. Larry’s customer mentions that he has given Larry’s name to a friend along with a strong recommendation. He gives Larry his friend’s name and phone number. Larry thanks his customer and phones the new prospect, who answers and says, “Yes, my friend recommended you. I hope you can help me with my plumbing problem.”
The visit. Larry arrives on time, simply but professionally dressed.
Larry: What seems to be the problem?
Customer: My toilet backs up and flows into the bathtub.
L: Oh, I’m sorry to hear that! How long has this been going on?
C: A few weeks.