Posts Tagged ‘referrals’

Leveraging Strategic Alliances to Get More Referrals

September 25th, 2014, Comments Off on Leveraging Strategic Alliances to Get More Referrals.

Here are five steps you can take to effectively leverage the relationships you have with your strategic alliances.

1. Paint a picture of your ideal client to your referral partners. If you can’t clearly paint a picture of your ideal client, how can others know who to refer to you? If you are not clear about who your ideal client is, take time to determine who it is. If you are not sure who your ideal client is, begin by asking yourself these questions:

*Who are my favorite clients?
*What do they do for a living?
*What do they do in their free time?
*What do I enjoy about them?
*What civic, fraternal, or business organizations do they belong to?
*How did they become my clients?
*What is their favorite charity?
*Do they have a faith?

If you do not know the answers to these questions, begin by scheduling appointments with your ideal clients to find out the answers. This is one of the most critical steps to leveraging your strategic alliances and getting more referrals; so take the time it requires to complete it.
2. Set expectations. The biggest difference between advisors who effectively utilize strategic alliances and those who don’t is that those who don’t do not have clear expectations. Too often, advisors start giving referrals in hopes that they will get some in return. This method rarely produces the result they are looking for. A better option is to meet for coffee with partners in your potential alliance and discuss expectations.

For example, you can ask them: “We have numerous clients who need tax advice (or whatever is appropriate for the situation) and are looking for alliances who are interested in a reciprocal referral relationship. Are you interested in getting more ideal clients? Are you open to a reciprocal referral relationship in which both of us commit to referring prospects to each other?”

The key is to follow up each quarter and to review your referrals. This process is not a “tit-for-tat.” However, I like to provide two to four referrals and see if people in my strategic alliance reciprocate.
If they haven’t referred anyone to you, you can address this issue at your quarterly meeting. This is also a good time to discuss their plans for supporting your business in the future. Depending on the conversation, you may elect to continue referring or wait until they reciprocate.
Sometimes, other advisors can’t refer prospects to you because they are with other financial advisors. If this is the case, ask them to sponsor one of your client events or a feeder workshop.
3. Ask for introductions instead of referrals. Something psychological happens when you ask a strategic alliance partner for an introduction instead of a referral. This approach may be more effective because an introduction doesn’t carry the weight that a referral does. Try this method and see if it is easier to obtain introductions than to get referrals.

4. Schedule reviews with your referral partners. Just as you have reviews with your clients, so too should you have reviews with your referral partners. This is one of the most critical steps to improving results. Most advisors start referring and may or may not get a referral in return. Instead of doing something to change the situation, they become frustrated. By scheduling reviews, your referral partners can see the value of your relationship and it is more difficult for them to forget about you and your agreement.

During your quarterly meeting, review the referrals both of you have given and determine how you can support each other, moving forward. Your on-going meetings are more effective if you have agreed to the expectations up-front.

5. Add some non-traditional referral partners to the mix. Even if you have an alliance of reciprocal partners, one of the key factors for leveraging these alliances is to be open to the idea of adding more referral partners to your circle. The type of referral partner you add will depend on the services you provide. While traditional partners, such as CPAs and attorneys, can be a great way to grow our business and get more referrals, another option is teaming up with non-traditional strategic alliances, such as bankers, investment advisors, agents, brokers, and lenders.

If you do not have a list of non-traditional alliances, ask your ideal clients informational questions such as what they do for a living, and what vendors and service providers they use. You will soon know the best non-traditional alliances to cultivate.


By Annette Bau, CFP

Annette Bau, CFP, is the founder of and For more information, visit About Annette Bau. This site is not designed to provide you investment advice or financial planning advice. By visiting or access anything on this site or another site is linked to, you agree to consult with your own advisors and review your situation.


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The Delicate Art of Approaching Friends and Family for Referrals

April 3rd, 2014, Comments Off on The Delicate Art of Approaching Friends and Family for Referrals.

Demonstrate your value by telling stories of client success.

Work is frequent fodder for conversation between friends and family alike. When the topic comes up in your social circle, how do you describe the work you do? When you describe your practice to friends and family, be mindful of the fact that the words you choose may actually align with the art of gaining referrals. Friends and family are great prospects, and even if they are not likely to become customers in the near future, you can still gain referrals from them.

Your ultimate goal is to demonstrate the importance of the work you do and the valueyou bring to others. The best way to do this is by telling stories, sharing anecdotes and providing case studies. Most salespeople—financial professionals included—overlook the effectiveness of stories, anecdotes and case studies to demonstrate the importance of their work and the value they bring to their clients.

For a non-client to refer you to someone he knows, a very clear picture of the value you bring to others has to be realized. Be sure to describe the process you put your prospects and clients through. Provide specific examples of how you’ve helped clients prevent problems, solve problems and take advantage of opportunities:

  1. Discuss value: “George, are you beginning to see the tangible value we bring to our clients?”
  2. Treat your requests with importance: “Great. With that in mind, I have an important question to ask you.”
  3. Get permission to brainstorm: “I’m hoping we can take a few minutes to brainstorm about people you think should know about the work I do. Can we try that for a minute?”
  4. Suggest names and categories: “For instance, I think your business partner, Barbara, might be a great candidate for the work we do. Could you introduce me to her?”

It’s really as simple as that. The key is basing your conversation on the value you bring to the table. To accomplish that, tell the story of your value. If  you do a good job of describing the value you bring to clients in your practice, there’s a good chance that friends, colleagues and family members will want to become your clients, too.

Schedule a meeting
One of my coaching clients asked me the following question: “I’ve been meeting some people for golf over the last few months. They’re not close friends yet, but we get along very well. Some of them would probably make great clients. I’m not sure how to approach them for business. Any ideas?”

If you’re not comfortable approaching friends and family for referrals in a social situation, ask them to sit down with you, at a convenient  time and place, to discuss your practice in depth. Explain that you want to talk about expanding your business and acknowledge that you would appreciate some help. Of course, it doesn’t hurt to buy a meal, or cover a round of golf, for this meeting.

When you approach friends and family about a separate meeting, honesty is the best policy. The key is how you bring it up. In most cases, you want your approach to be soft. Let me give you a short script to illustrate my thinking:

YOU: “George, there’s something I’ve been wanting to talk to you about, but I’ve felt uncomfortable bringing it up here on the golf course.”

GEORGE: “What’s that?”

YOU: “I do very important work for successful people like yourself. I was hoping I might be able to approach you in ‘business mode’ to see if I might be a valuable resource for you or someone you know. May I give you a call at your office to begin a business conversation with you?”

GEORGE: “Sure. Here’s my card. Tell my assistant that I asked you to call me. She’ll make it easier on you that way.”

Of course, put these sentences in your own words, and be genuine. But you get the idea. The key is not to pressure your friends and family to help you. Express your desire not to hurt the relationship by putting any pressure on anyone. And always be yourself. Sincerity opens doors more easily than tricky techniques.


By Bill Cates

Bill Cates works with financial professionals and their companies to increase sales by attracting high-quality clients through a steady and predictable flow of referrals. To learn more, visit or email him directly

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