Important recommendation tips for financial advisors

Successful consultants should always talk to new prospects and clients. However, requesting a referral is never easy. It is difficult to find the right balance between frankly presenting yourself and your service (with the goal of achieving sales) and being aggressive. However, referrals are an important part of any financial advisory business and are usually the best way to reach potential clients. Here are some tips for getting one. They may make requesting and obtaining referrals less difficult and more efficient.

Key points

  • In the financial consulting business, recommending new customers is the lifeblood of the business.
  • Getting good recommendations means being professional, first serving your customers and doing a good job-so that existing customers will want to tell their friends and family about you.
  • Using rewards, social media marketing and professional networks through local organizations or societies can also help you gain fame and build your reputation.

Give a little, get a little

If you really want to motivate your current customers to talk about you with their friends and family, you may need to provide them with some reward. One way you can do this is to set up a gift plan for customers who have successfully recommended you to one of their contacts. If the recommendation leads to a meeting with a potential client, a gift is a great way to express your gratitude. Tell all your clients that you are offering a free financial review to any individual they recommend to you.

Then reward those who insist on making connections by giving them a store-bought gift or gift certificate. Chocolate, wine and champagne are always popular, as are gift certificates from department stores, spas or local boutiques. Another way is to provide discounts on the services you provide and provide you with successfully recommended customers.

Reward plan

One way to promote your referral reward program is to announce it on your website or in the emails you send to customers. When you provide gifts to customers, please ensure that you comply with all applicable regulations. You may also want to rotate the gifts given out so that your customers will tend to recommend more than once.

You can also host competitions for your clients. No matter which client provides you with the most feasible recommendation, you will win the competition and receive prizes. You can have first, second and third prize winners, so more people will be encouraged to participate. Likewise, keep customers informed about the game during the meeting or through your newsletter or email list.

Use social media

Today, more and more companies are using social media channels from companies such as LinkedIn Corp. (LNKD), Meta Platforms Inc. (formerly Facebook, FB), and Twitter Inc. (TWTR) to spread their information to the whole world. world. The more you start to connect with customers through social media, the more chances your message will be communicated to their friends and colleagues. Create a Facebook page and let your current customers “like” it, then let them go ahead and forward it to their network of friends and colleagues. Don’t be shy to remind your clients how your financial and estate planning services are good for them and others, so they can use these examples to make some sales for you when recommending them to friends.

You may also want to create a weekly or monthly blog on your website, where the comment section can be a platform for interesting and relevant discussions. If a customer reads something on your blog that appears to be related to a friend or colleague, you can forward the link to that person. In this way, your written text can endorse you and is usually as good as word-of-mouth recommendations.

Use organization, society

Contacting local organizations for recommendations is also a good way to reach many like-minded people at the same time. Take the initiative to teach the organization the importance of financial planning, and then include a Q&A session to let people really understand you and talk about their ideas. Don’t forget to bring business cards and materials about your business for attendees to read and carry. You might even want to conduct a survey, ask for feedback on your presentation, and get permission to contact the audience via phone or email.

You can check which of your clients work in large companies, and then directly ask them if they have the opportunity to discuss with the company’s human resources department to provide services to their employees. If you specialize in a certain market segment, target organizations that cater to people or groups of people in the relevant professional category.

Professional network

Are there any lawyers or insurance agents you have worked with in the past that you admire? If so, you can agree to exchange contacts with that person or reach an agreement to handle all merged contacts as a team. In this way, you can provide a series of services to a group of people, and these services will come from at least one person that these people already know and trust. You can also ask these professionals to write recommendations about you and your services, and post their comments on your website or social media pages. This is free advertising and comes from people who really know and appreciate your work.

Concluding remarks

Don’t be afraid to regularly remind you of your current customer list and you are looking for referrals. The best time to do this is usually at the end of a productive meeting. You can raise the fact that you are offering an initial meeting with a potential customer for free, and you are happy to answer any questions that their friends or contacts might ask.

Likewise, you don’t need to feel that you are asking this person to do you a big favor; instead, think of it as a way to advertise your services to people who may need them.

Bottom line

Recommendations from friends, colleagues or industry experts can get more potential customers to call you. Proactively seeking recommendations and using social media or building connections with organizations and other professionals should be an important part of increasing your client list.


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