Part-Two of the Power of Referrals offers key strategies, including the dos-and-don’ts, to setting up a roster of referrals that you can count on. Get busy, get active and get referrals!
Strategies for Generating Referrals
Generating referrals is the product of small activities, repeated regularly, over an extended period of time.
In my work with financial advisors, one thing is clear. There is no one, single approach that generates referrals. Generating referrals begins with having clients that are willing to recommend you, so the best referral strategy is a business that keeps your current clients happy. Most successful advisors will tell you that they reinforce their value to clients each and every day, through the thousand small points of contact that take place.
In general, though, referral strategies can be boiled down to two categories: passive and active.
A passive strategy is one that you incorporate seamlessly into all of your interactions with relationship. A good example of a passive approach is to include a note on a newsletter or at the end of your email indicating that you appreciate referrals from existing clients. The downside to a passive strategy is that it is always on, and can change the way you are perceived. Indeed, passive approaches run the risk of actually reducing the amount of referrals you receive.
Active strategies are much more likely to generate positive results. An active strategy must, by definition, engage you in a process of determining who you want to speak to about referrals and how you want to speak to them.
One way to take action with your referral-generating activities is to take stock of your current relationships. Segment them into various categories. This process may appear daunting, but very quickly you will notice patterns emerging. Once you get a clear picture of where your strengths and weaknesses lie, you can begin to focus your activities on the categories one at a time. Like anything, breaking a process down into smaller, more manageable components dramatically increases the likelihood of you completing a task. (continued on Page 2.)