In a perfect world, our clients would bring us new clients.
Selling up and selling down would happen automatically because they would bring on their parents and children as new clients.
They would talk us up in their social circles. The phone would ring off the hook.
This rarely happens. Why not?
Maybe they will set up college savings accounts for their kids.
They might not bring their parents into the fold because they don't understand how you can help older people on a fixed income.
The bigger reason they aren't talking you up to their friends is risk.
If they come on too strong, the friend might say: "Why do you keep pushing your insurance agent? Do you get a fee for every new client?"
They are speechless and never bring up your name again.
Clients can help get you new clients, but they likely need some coaching.
You've seen sales scripts before.
You probably said: "It's good, but these are not my words." The same is true for clients trying to help you get business.
The approach they use must be in their own words and comfortable for them.
How Can Clients Refer Business?
Your clients want to help but do not know how.
The first step is realizing your clients probably know many people just like them.
If they are twentysomething recent college graduates in their first real jobs, they likely know plenty of people just like them.
They might not know billionaires or surgeons, but they know dozens of people in similar circumstances.
Your older clients know other older folks.
If you've helped them, that's an easy story for them to relate. Nothing succeeds like success.
Who wants to be a millionaire? Is your younger client part of the gig economy?
As a consultant or contract employee, do they have a retirement plan at work?
Possibly not.
They still have the ability to set money aside for retirement and get a tax break, too.
They could easily setup an individual retirement account (IRA).
You gave your client that same advice, and they acted on it.
Here's a sample: If you invested $477 per month in an IRA, and it went into the stock market and averaged 10% a year (lots of "if's" here), after 30 years, you would have about $1 million.) Who have you persuaded to set up an IRA and add to it regularly? Could they share that story with their friends?
The soon to retire client. At the other extreme, you have clients in their 60s who've been with you forever.
They are retiring next year.
You planned how their retirement nest egg is going to fund their retirement lifestyle.
They are looking forward to retirement and feel they will be comfortable, thanks to you.
Who do they know in a similar circumstance who doesn't feel as comfortable?
The complainer. Your clients work with an advisor. That's you.
They feel they get great service. Their friend works with an advisor, too.
The friend feels neglected. The advisor never calls.
The friend moans all the time.
It's easy for your clients to suggest the friend give you a call. "I bet she would return your call." They tip you off to expect the call. Two weeks later, if the friend is still moaning, your clients can ask; "Have you called yet? Why not?"
How Do Introductions Work?
Those three examples require your clients to be proactive. They need to "sell" or "position" you.
There must be a need present.
Your clients might feel uncomfortable suggesting that friends talk with you.
What else can they do?
Another strategy has you, the advisor, doing the work.
You're asking your clients to introduce you face to face, not do any preselling or positioning ahead of time.
This is a lot easier.
Very often, it simply means being in the right place at the right time.
For example, your clients and this other person might meet for drinks after work every Friday.
They get together at the train station an hour before their train.
They might work out at the same gym every weekday morning.
If you, your clients and this other person are there, acknowledging your presence and making the introduction is easy.
Does it work?
There's an urban legend (meaning it can't be verified) that the British did some clever stuff to get selected as the site for the London 2012 Olympics.
The various cities had the opportunity to make their case before the judging committee.
The Brits knew who was on the committee.
Somehow, they learned which hotels the judges would be staying at when visiting the other cities for their respective interviews.
The British had a person "who just happened to be staying at that hotel at the same time" and lingered in the hotel bar.
This person "bumped into" one of the judges and had a casual conversation, as two business travelers often do.
How do you ask for the introduction?
When you ask a client, "Do you know anyone I might be able to help?" their mind often goes blank.
The more specific you can get, the better.
College alumni. You and they graduated from the same college. You were in different years.
You did some research and learned a few other grads who live nearby did very well for themselves.
Show your client a list of five names. "Do you know any of them? If so, would you introduce me?"
Co-workers. Your research has turned up several people at a client's firm with client potential.
Those people live in the area, but you don't have a direct line to them.
Maybe you tried connecting on LinkedIn but no luck.
You work at (firm). So do they. (Present the list.) Do you know any of them? Could you introduce me?
Neighbors. This can include people who live in the same development or belong to the same service club.
Once again, you did the research and found the names.
If they socialize, you might get invited to their next drinks party.
What do you know about these folks? How well do you know them?
What Is The Logical Reason For The Introduction?
Don't be blunt.
"I want to get this guy as my client." Somehow, that sounds like the benefit flows to you, not the other person.
There are smoother ways of making the request, bearing in mind this might end up as a social introduction with no business potential after all.
Get to know. This might be an influential person, a mover and shaker in the community.
"Do you know (name)? They seem to be involved in everything. This is someone I would like to get to know. Would you introduce me?
Might help. This is a different scenario. The person has an issue. They might own a business or work in a certain profession.
This is your niche.
Do you know (name)? They work in (field) and that is my specialty. This is someone I might be able to help. Could you introduce me?
There are times when either an introduction or a request for referrals is the right strategy to pursue.
Your client might be in an ideal position to help, yet not know it.
Bryce Sanders is president of Perceptive Business Solutions Inc. His book, "Captivating the Wealthy Investor," is available on Amazon.
Credit: Shutterstock
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.