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January 11, 2024 at 12:18 AM
What You Need to Know
- Most clients do not care how or what you get paid.
- They do not care if you are trying to win a contest.
- They may want to help friends and relatives.
In my 23 years working with financial and insurance professionals, I’ve seen advisors ask without hesitation for $300,000-plus commitments from clients, for large single-premium insurance policies or to invest.
But when it came to talking with these clients about someone they know who could benefit from doing the same thing, they couldn’t bring themselves to have the conversation.
They were afraid — afraid of being rejected, afraid of appearing disloyal to the clients they were with, or afraid of appearing needy or “salesy.”
But introductions from an engaged, happy client are often the best way to grow your business.
There’s no cost, it’s immediate, and the introduction comes with a built-in testimonial from the client.
They’re good for the prospect, who gets access to your expertise.
They’re good for you, because the likelihood of doing business with the prospect is much higher than through other connection methods, and — believe it or not — they’re good for the client who is making the introduction.
Referral Fear
You have virtually no risk. The idea that someone would take back a check and storm out of your office or throw you out of a home because you ask for a referral is nonsense.
But the clients put their relationships at risk in providing referrals.
If they take that risk and it works out (and it’s likely to since you’re involved), the clients become a hero to friends and family members.
You actually deprive your clients of the opportunity to be a hero when you don’t talk to them about introducing you.
Bad Referral Training
Those fears of yours likely come, in part, from the way you learned to ask for referrals:
“I get paid in two ways…Give me 10 names and phone numbers…”
“You’ll never get a bill from me…all I ask is that you refer me to friends and family…”
Or worse:
“If you’d rather have me working on your account than out looking for business, give me names and numbers…”
“We’re having a contest at our office, and I just need two more clients…”
Early in their careers, most advisors learn one or more of these and are told to keep doing them.
