It’s not unusual for advisors to rely on clients for unsolicited referrals to affluent individuals. But why would you depend on such a dicey prospecting strategy when you can create a stream of wealthy client referrals by being systematic and proactive?
For the most part, when clients are asked (in the proper manner), they’ll come through with affluent client referrals. The process for soliciting client referrals is made up of seven steps. There are no great secrets for obtaining client referrals; the key is consistency.
You should think of these steps as an outline that you will adopt based on your own working style and preferences. As you become more skilled at obtaining affluent client referrals, you should continue to modify the methodology to create an approach that works best for you.
Step #1: Set expectations. You want to create the appropriate set of client expectations from the start of every relationship. Explain to your clients how you will be checking in frequently to gauge their satisfaction with what is going on and, very importantly, to uncover any problems before they metastasize. Early on in your relationship with clients, let them know you appreciate referrals.
Step #2: Create a loyal clientele. You must make sure your clients believe in you and your abilities. There are a variety of actions that can be adopted to build and strengthen the rapport you have with these clients, and they’re necessary if you want referrals.
Step #3: Identify wealthy prospects. Your chance of getting affluent client referrals is exponentially greater when you talk about people your client knows you would like to meet. Therefore, it behooves you to know whom the client knows. Then you can be specific when you ask for referrals.
Step #4: Ask for the referral. Frankly, it is rare for clients to wake up and think about providing affluent referrals to the professionals they employ. You have to take the initiative if you want the referral.
Step #5: Say “thank you.” You must recognize there are social and personal costs to your clients providing you with referrals. You should quickly reciprocate and show gratitude. Moreover, thanking your clients for referrals provides you with another opportunity to maintain contact and reinforce your relationship.
Step #6: Inform your affluent client about how the meeting went. Your client will be curious as to how things went with the person they referred. It’s important that you let him or her know that things went well, but be mindful of confidentiality.
Step #7: Say “thank you” again. Just because you thanked your client for the referral once, do not stop there. Thank him or her again, especially if you close some business.
Client referrals are usually critical to building a substantial high-net-worth clientele. Client referrals are important in this regard and being systematic about garnering such referrals is critical to getting them.
