QUESTION:

I have been a financial advisor for almost 25 years. My clients are older now and getting older. Very seldom do I receice unsolicited referrals from my clients. Very seldom do I lose clients and our performance has been very good. Sometimes I wonder if I am referrable.

ANSWER:

Thanks for taking the time to write. I think your question takes some courage to ask.

Of course, I don’t have enough knowledge of your practice to know the truth, but I have a few thoughts.

First, you may already know that older folks - on average - tend to refer less than others. They often become even more private and, of course, as they get very old, they just don’t know as many people. You may want to think about infusing your practice with some younger clients. It might add energy to your practice - unless you’re right were you want to be until you’re done.

One thing I’ve learned is that the level of service and relationship necessary to keep clients is not quite the same level of service and relationship necessary to get referrals.

Here’s an action step to consider:

There are two basic areas you might want to address. 1) How can you bring more value to your clients, and 2) how can you build stronger business friendships with them?

By the way, client appreciation events (not referral events) can be a great way to strengthen your client relationships. Referral events might also be a viable way for you to get referrals from your clients in a social setting (no business talk, just social).

Hope this helps.

BILL

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QUESTION:

I’ve been told it is better to ask for recommendations vs. Referrals. What is your opinion? Is there really a difference?

ANSWER:

Thanks for taking the time to write. I hope all is well with you!

I tend to use the word “referrals” for “internal use only.” Meaning, I rarely use the word referrals when asking for referrals from client. I like to use the word “introductions.” When we ask for referrals, what we really want is an introduction - a connecting to the new prospect. An introduction implies recommendation, but goes a step further and creates a connection. Someone can recommend us to someone, but not connect us to them.

Likewise, someone can introduce us, but not recommend us. Which would you rather have? I’ll take the “introduction” any day of the week.

Ultimately, you should use the word that works best for you and flows most naturally for you. This way, you’ll engage in the process more regularly.

Bill