Before I tell you what “this” is, let me say that we all know we should be good at it… but very, very few of us are. Why? Because we have been given horrible advice on how to do it well. Thousands of articles have been written about it over the last 25 years… all of them garbage.
But… there is now a way to finally make “this” work.
So, what is “this”? It is referrals… and here’s why they don’t work based on the advice you’ve received and articles you’ve read. We’ve been told to ask for referrals based on 2 criteria, both HORRIBLE:
- Give me a referral to help me the advisor—something like, “I get paid in two ways” or “When you give me referrals it allows me more time to concentrate on you and my other clients”. This does NOT work well. The client either thinks, “Hey, I’ve given you all my money to manage, what more do you want?” or “WHAT? You aren’t going to be watching my accounts closely?”
- Give me a referral so that I can help your friends, neighbors and relatives—and they think, “Right, my friends, neighbors and relatives are going to love me to sic a salesperson on them”.
We know these things deep down in our gut, which is way many of us don’t ask for referrals as often as we should.
However, 7 years ago I created a referral system that has averaged a 50% success rate. So, if you ask 10 people for referrals, you could expect 5 referrals. How do you like them apples?
Here’s the setup and the script I give the advisors that work with me at 5Q Group…
- We give and walk through 7 key documents that most people have not done… or have done wrong. We talk about how not them having them done can cause big problems down the line… but we help them at no cost. The clients realize that we have just saved them the possibility of big hassles, money and time wasted. And it only takes us about 40 minutes to do this for them.
- After helping them with the documents we ask, “How much time, hassle and money have we saved by getting these things done?” And they always respond, “A bunch!”
- “I ask because do you have anyone in your life that looks up to you… comes to you for advice… or runs things by you?” Some say no… but for those that say yes…
- You say, “Would you like me to sit down with them for 40 minutes… help them fill out the same paperwork we did here… so that THEIR problems never become YOUR problems?” And they can’t wait to get you in front of those people!
So, why does this work… because instead of asking them to help YOU… or their friend, neighbor or relative… you are asking them to help THEMSELVES! Yes, a referral would help you and their friend. But, in addition (and it’s a BIG addition)…they are helping themselves by avoiding having to help their mom, friend or neighbor that relies on them, because you are going to help prevent all those problems!
What you need to do is find those problems that you can fix… that DON’T involve selling products, because this does not work by selling products. You have to find some problems you can fix with simple solutions that do NOT involve products or selling something. This creates a referral that makes your client feel much safer about making the referral because you are not going to be out slinging products, but instead, providing solutions to the person they referred.
What are those problems? It depends on your niche market. If you are having trouble figuring out what those things are, brainstorm with your colleagues, your coaches and your marketers to zero in on those value added… hassle saving solutions, you can provide to the client base you focus on. Then, watch your business grow because research says that referrals are 4 times more likely to invest with you, than a typical prospect.