As more countries ban cold calling, it’s become more important than ever for financial advisors to build a steady source of referrals from their clients. To do this without having to always ask for referrals, encourage clients to become your advocates. When that happens, clients will bring in referrals because they want to, not because you asked.
So, I reward clients based on their actions that benefit my business, not simply because of their assets under management. The action that I want to encourage and reward my clients for is referrals. One way I do this is through my advocates’ club.
How to talk about an advocates’ club
Let’s say I’m having a conversation with a client. I’ll tell them, “I hope you’ll join us at our advocate client annual event.” The client will always ask, “What is that?” I’ll reply, “It’s for clients who have referred five people or more in a calendar year. This gives you exclusive rights to our advocates’ event at the end of the year.”
I don’t push it hard. If they’re interested, clients will ask for more information. Sometimes clients who aren’t advocates will hear about the event from other clients and ask why they weren’t invited. I then explain that I would love to invite them to the next event, if they refer five people or more to me. This makes it their decision.
The advocates’ club event also saves me money because this event creates so much more business than it costs to hold.
How you refer to yourself matters
Furthermore, in all conversations, it’s important we call ourselves financial professionals or say that we work in the financial services profession and not the financial industry. If we can’t call ourselves professionals, then how can our clients see us as such and hold us in the same esteem or professional standing as their doctor, lawyer or accountant?
Anthony Jones is an 18-year MDRT member. He’s also a Top of the Table member. Watch more from Jones about referrals and how to qualify for Top of the Table in “4 lists and a welcome pack.” (MDRT member-exclusive content)
