Instead of constantly making excuses for why you don’t ask clients for referrals, you need to change your attitude about it in order to grow your business.
“It’s a process [to change your attitude towards referrals],” says Matt Anderson, founder of the Referral Authority in Evanston, Ill. “For some people, if they keep focusing on the right stuff long enough, their actions will change and then their results will change.”
Here are several common excuses financial advisors use to refrain from asking for referrals. If they sound familiar, follow Anderson’s advice to change your mindset about referrals:
> The excuses
There are two types of excuses advisors use to not ask for a referral, says Anderson:
The first type of excuse is about fear, he says. Advisors often don’t ask for a referral because they are afraid they will look pushy, needy, cheesy or that they will spoil the relationship they have with the client.
The second type of excuse is when they blame the client, he says. The advisor will tell him- or herself that people don’t like to be asked for referrals or to give them — or they will say their clients are too busy for such things.
> Be honest
To stop making those excuses, the first thing you have to do is tell yourself the truth.
“Many advisors are not really honest with themselves about why they’re not asking [for referrals],” says Anderson. “They might give you a reason but it’s often not the real reason.”
For example, an advisor might say clients don’t like to be asked for referrals when, in fact, it’s the advisor who is uncomfortable doing the asking.
> Adjust your mindset
Start asking for referrals by changing your attitude about them. To do that, you need to go from a “sales” mentality to a “help” mentality, says Anderson.
Sometimes advisors feel uncomfortable asking for a referral because they think it is one more sales pitch. Instead, you should think of asking for a referral as a way of extending help to others.
To change your attitude, create a list of 20 reasons why people should do business with you, says Anderson. That way, you can see how you help people with their financial needs as opposed to just trying to sell them products.
If after making the list you still don’t feel confident, he says, keep the list visible either in your office or on your smartphone to review on an ongoing basis.
IE