recommended that the federal government buy up the “bad paper” and hold it
until the market improved.
Likewise, many advisors wait too
long to ask for referrals. For some reason, they think they must work with a
client for several years before they can
broach the subject. That simply isn’t
true. Many advisors have a moment of
enlightenment with clients that occurs
early in their relationship, and that is
when they should seek a referral. The client is on the phone or in your office, and
you sense or see the light go on. The client gasps or leans back in his chair and
smiles. You have shared something with
him that has meaning. Listen closely to
understand what it was. Then leverage
this moment of enlightenment and ask,
“Which of your friends do you think
would also benefit from (fill in the blank
with what you shared)?”
This is a great technique for an advisor who is reluctant to open his mouth
and ask for a referral. Yes, you are asking,
but you are doing so at a very opportune
moment and it doesn’t come off sounding
like a canned pitch, because it isn’t.
3. Waiting for things to improve.
This wasn’t discussed at the conference,
but I see it as a logical extension of waiting too long. Many advisors think they
can get referrals only when their clients’
portfolios are skyrocketing. So when the
market is down, they wait for things to
improve. Sometimes they end up waiting
and waiting and waiting. In the meantime, they are getting no referrals.
Don’t wait for better days. This very
moment, let your clients know that you
want to help people like them, no matter what the market is doing. Your clients must understand that you want to
make sure their friends can afford to re-
tire and play golf with them, not spend
their golden days asking, “Do you want
fries with your order?” They need to understand that you are there to help people
with their financial dreams in good times
and bad.
Thus, three mistakes become three
lessons that can lead to referrals: When
people risk what is important to them,
they are committed; the time to ask is
when the enlightenment happens; and
waiting for the market to improve does
not help anyone.
Martin R. Baird is CEO of Robinson & Associates Inc., a consulting company that helps
financial professionals measure and manage the quality of client service and improvements to their internal operations.
He is author of The 7 Deadly Sins of Advisor
Marketing. Contact him at 480-991-6420 or
mbaird@raresults.com.
