The Dark Side of Referrals for Successful Financial Advisors
Mike Garrison
Life is better with a Guide. Special Needs Parent and Fanatic Fly Fisherman. Helping business owners love their business and their life through value acceleration
Yes, I admit it.? That is totally, 100% a Star Wars reference.? However, there really is a dark side to referrals, especially as you become more successful.
Short answer:? Time is more and more precious as you grow your business AND try to have a life worth all that effort to create income and value.? Most people are not worth as much time as you might think in a predictable referral process.
One of the greatest examples of this ‘dark side’ coming into play is in the area of Centers of Influence (COI’s).? Quite simply, after 30 years of coaching and consulting with some of the best in the industry…I no longer call a professional a COI until after they do a referral introduction.? Note:? they don’t have to create a sale to become a COI, they just need to successfully use their ‘influence’ on my behalf.??
Another problem with COI’s is that we in the financial service industry falsely limit the group to other professionals like attorneys and accountants.? What a massive error.
Would you agree that a client that has referred you is using their influence to benefit you?? In my book, they are the best kind of COI possible because they not only are introducing you…they possess the ultimate ‘trump’ card in that they can answer the "why should I meet with them” question better than anyone else since they are a client.??
Where you move into the ‘light’ when it comes to referrals is when you start getting business owners as clients.? They not only can be very profitable…they also have a client base of their own and can potentially refer you at scale.??
How to make sense of this and what is a practical execution strategy?
I am going to end with this great quote I have used so many times from my first great business coach Dick Herron from Rhode Island:? “You can’t eat potential”
The key with referrals is being able to blend enough activity with the right people.? You need to find and test ways of working both widely and deeply if you want to experience the power of referrals in your bank and your life.? Don’t spread yourself too thin trying to work with people that don’t return your interest…that is when you are working in the ‘dark side of referrals’.
Questions and comments are welcomed and let the trolls stay home!? Feel free to reach out to me directly if you want to learn more about how I can help you and your organization scale and love referrals more.
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Mike
Director of Quality Management at Insight Technology Solutions
4 个月Good, actionable, advice Mike. Thanks.
Chaos Coordinator at The Social Buzz Lab: A Strategy First Digital Marketing Team helping brands, companies and individuals build Buzz on social media for over 15 years. Fueled by coffee and a love of marketing. ?
4 个月Props for the Star Wars reference, Mike! Good points on the COI and on unique types of referral sources. I think out of the box types of referral sources can be a golden goose if they’re the right fit.