Why You Should Ask for Referrals

Many of the financial advisors I meet with each week hate to ask for referrals. Some feel that it makes them look like they're begging while others fear rejection, and still others think it might make them look as though they are intrusive. This is particularly unfortunate because the most successful advisors in the industry use referrals as their primary source of new QUALIFIED prospects.

When you receive a referral from an existing, qualified client, the chances that the referral is also qualified are close to 100 percent. Think about that. No risk. In addition, there is no better form of advertising than a third party endorsement, especially from a satisfied client. If you call someone to whom your current client has spoken to about you, you are already through the most difficult part of the prospecting process. They already know you're competent, honest, trustworthy, loyal, etc., etc., etc. Now its just a matter of establishing rapport and demonstrating that you can solve their specific needs.

Of course, we're still back to the question, "But, will my clients give me a referral?" Too many FAs are afraid that asking for a referral will appear an imposition to their clients and offend them. Yet, firms such as UBS Financial Services, Hilliard Lyons and Merrill Lynch conduct client satisfaction surveys on a regular basis and report that, on average, over 80 percent of clients surveyed reported that they would be happy to provide a referral, if asked. I repeat, over 80 PERCENT of clients said they would be happy to provide a referral if, asked. Its up to you. So, ASK! Thanks and good luck. kfg