In the heart of Overland Park, Kansas, there's a successful financial advisor who has quietly revolutionized the referral process. Bryan Sarff, CFP® is not your typical advisor. As a cherished client of ours at Bill Good Marketing, he recently graced us with his presence on a webinar that had everyone leaning in closer...
Imagine a reservoir of untapped potential, a wellspring of new clients ready to be welcomed into the fold of your financial advisory services. In our 40+ years of coaching and assisting financial advisors to double their production, we’ve found a truth that’s often overlooked: the most potent opportunities for growth lie not in cold calls or ad campaigns but in the hands of the very clients you serve every day.
The question is – are you capturing this incredible opportunity?
Let me share a secret with the aspiring successful financial advisors out there: the pros who follow the guidance we’re about to dive into?
They’re not just meeting expectations; they’re setting new benchmarks by converting 20% of their current clients into a powerhouse referral network every year.
You might have heard that the key to unlocking new business is simply to ask for referrals. Well, it’s time to rethink that. The ideal clients—the ones who truly bolster your advisor business—aren’t won over by a mere ask.
Think about it: Why did you recommend that standout CPA or that dependable insurance agent? It wasn’t because they asked; it was because their awesome at what they do.
So, if you’re itching to increase those new prospects and turn them into satisfied clients, forget the awkward ask. There’s a more natural, more effective way to spark that referral magic.
Before we jump into the nuts and bolts of creating a referral strategy that works, let’s get one thing straight: a genuine referral isn’t just a name.
It’s the name of someone who needs what you offer, given by a client who believes in your expertise so much that they can’t help but spread the word.
Ready to revolutionize your referral game? Buckle up, because I’m about to show you how to make referrals a natural part of your advisor-client relationship, fostering an environment where your client base becomes your most effective marketing partner.
Now, let’s zero in on the strategy, a blueprint if you will, for sparking a referral culture that feels as natural as recommending your favorite social media influencer to a friend. As the best financial advisors know, the secret sauce isn’t in the asking—it’s in the experience you provide.
When you excel at financial planning and make financial goals achievable, your clients won’t just appreciate you—they’ll talk about you. They’ll be your fans on LinkedIn, your advocates in their families, and your promoters in their circle of friends. That’s what client referrals are all about.
Let me lay it down straight: a referral is a golden ticket that’s handed out when the time is right. It’s not about making your clients feel like they’re just another number in your quest for new clients. It’s about being the financial professional they trust implicitly, the one they believe in so much that sharing your name comes as easily as sharing the latest market news.
You see, referral marketing isn’t a one-off tactic; it’s a game-changer. It’s what separates the financial advisors who are just treading water from those who are sailing smoothly towards the horizon of success. By creating a referral program that rewards and recognizes the value your clients bring, you’re not just growing your client base—you’re building a community.
And here’s the kicker: the best referral sources for financial advisors are often your best current clients. They know the ins and outs of what makes you standout. Whether it’s your knack for explaining complex financial services in simple terms or your meticulous follow-up that never leaves a client hanging, these are the things that people remember and share.
What’s the bottom line? It’s not just about hitting financial goals; it’s about building relationships. When you focus on excellent financial advice and genuine connections, referrals become part of your business’s DNA. This is how you create a successful financial advisor business—where new business comes to you, not the other way around.
So, as we delve deeper into the nitty-gritty of referral marketing strategies, remember this: your role isn’t just about planning services or discussing the bottom line.
It’s about being the financial advisor whose clients can’t wait to tell their friends about, the one they tag in posts and rave about over coffee. That’s the advisor who doesn’t just chase success—they attract it.
To understand the science behind getting referrals, you need to know four basic facts about referrals.
Let’s clear the air: a referral isn’t just a name passed along; it’s the fruit of trust, service, and satisfaction. It’s what happens when a client doesn’t just see you as their financial advisor, but as the financial advisor. They’ve seen you navigate the financial services landscape with finesse, helping them reach their financial goals with ease and confidence. This level of service compels them to share your name, not because you asked, but because they can’t imagine keeping you a secret.
Think about the best dining experience you’ve ever had. Did you recommend it to others because the chef asked you to, or because the meal was unforgettable? Apply this to your practice. If you make your clients’ financial planning experience unforgettable, they’ll naturally want to share it. Especially with family, friends, co-workers – the people they care about. Just as you share your favorite restaurant with the people you care about and know will appreciate a good meal. After all, then you all have something in common to talk about.
Here’s the deal: soliciting names can backfire.
According to industry insights, forced referrals rarely turn into solid new clients. Why?
Because a genuine referral is voluntary, coming from a place of enthusiasm and personal endorsement. It’s what happens when your client is at a family gathering or a social event, and they can’t help but mention how you’ve helped them invest wisely or plan for retirement. That’s the referral that counts.
According to a study by Julie Littlechild, CEO of Absolute Engagement, only 2% of clients referred someone because their advisor asked them to. If nothing else, the data alone should convince you that asking for referrals is the worst way to get them.
“But…” you’re probably thinking, “I’ve asked many of my clients for a referral, and they’ve told me the name of someone they know.”
My question: How many of those names actually became clients? Probably not very many. A solicited name is a spur-of-the-moment thing. They are just trying to satisfy your request with minimal effort and minimal risk to themselves. At best, they have no idea if that name they gave you even needs financial advice.
At worst, they gave you the name of someone they know won’t mind telling you to go away.
You’re not just a financial planner; you’re a financial professional who understands that subtlety wins the race. Bombarding clients with requests for referrals can be off-putting, making them feel like they’re just a means to an end.
Instead, focus on creating lifetime value, engaging with them on social media, remembering family members’ names, providing good investment advice, and showing that you genuinely care. This way, when the topic of financial advice comes up, you’re the first person they think of.
Finally, understand that referrals are reciprocal. They’re about building a client-advisor relationship that’s so robust, your clients view referring you as a way of doing a favor for their friends and family, not just for you.
When your clients know that the referrals they send your way and introduce you to are going to receive the level of help and relationship they already receive, they feel like they’re sharing a valuable resource, not just fulfilling an obligation.
Now, how do you weave these facts into a referral strategy that’s as seamless as it is successful? It’s about action—strategic, thoughtful action.
Here’s how you can build a framework for successful referrals that will see your business thrive:
By centering your referral marketing plan on these facts, you’re not just playing the numbers game; you’re cultivating a word-of-mouth ecosystem. This is where the magic happens, where your best clients become your biggest advocates, and prospective clients come to you pre-sold on your value.
Imagine transforming the way you attract new business. Imagine tapping into a referral stream so consistent that it dwarfs the results of the past five years. That’s not just a dream; it’s a reality for advisors who pivot to a smarter, more intuitive approach to referral marketing.
Here’s the straightforward plan:
Now, let’s amplify that success.
Bill Good Marketing isn’t just another name in the game. It’s the name that’s helped thousands of advisors and RIAs just like you. We’ve mastered the art of referral marketing strategies, nailed the prospecting content that engages, and codified the practice management best practices that make all the difference.
Looking for a breakthrough?
It’s time to equip yourself with our “Referral Consciousness” Guidebook. This isn’t your average collection of tips—it’s a robust, actionable blueprint that’s been honed through the successes of countless financial professionals. It’s your key to unlocking a referral strategy that’s both natural and astonishingly effective. In it you will find 5 easy ways to promote referrals without asking. (And I guarantee you aren’t doing even one of these.)
So, here’s your call to action: Don’t just read about change; make it happen.
With Bill Good Marketing by your side, you’re not just growing your business; you’re setting a new standard of excellence in the financial advisory world.
Ready to take the leap? Your next chapter of growth is just a download away.
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