Financial advisor newcomers and seasoned pros alike are apt to find something of value in Frank Maselli’s new book, Referrals: The Professional Way.

In no-nonsense and often witty language, Masseli  provides 10 strategies for achieving an important goal of financial advisors: gaining high-net-worth client referrals. “90% of financial advisors claim referrals are critical to their success, yet 75 percent said they never ask for referrals,’’ Maselli writes of a survey taken of professionals. That must change, he says.

Maselli’s background includes more than 30 years of  working at firms such as Merrill Lynch, UBS, Morgan Stanley and Wells Fargo, as well as founding the Financial Lifeguard Academy, which trains financial advisors and managers.

“We are in one of the great “helper professions’ in the world, but we must begin to learn new skills and attitudes if we want to succeed,’’ he  writes, saying that the financial services industry is in the “midst of a cataclysmic upheaval.’’

Maselli urges FAs to think beyond the conventional: HNW clients can come from a wide circle that includes CPAs, estate attorneys, business managers, “and all other potential centers of influence who might have clients that would benefit from your experience.’’

Today’s potential clients are sophisticated, busy and hard to impress, Maselli says, and FAs are best to avoid the outdated “hard sell’’ approach. “I can almost guarantee you they are thinking “Loser’’ with a capital L, or worse…salesman!’’

The goal of  successful FAs is to reach Level three of trust, in which a HNW client believes “I trust you with my friends, family, colleagues and critical relationships!’’ And Maselli urges readers to be selective: “I believe you really only want referrals to other top tier clients.’’

Getting referrals is partly a game of psychology, played with professionals who are savvy and wary, especially about their money: “When the client looks into your eyes, they want to see a reflection of themselves.’’  Do not, Maselli says, make yourself out as a Charles Dickens waif: “Please sir…I need some more names.’’

Because  the financial service industry has changed from “an old-fashioned sales business to a modern service profession,’’ FAs should tap into “the desire to take great care of people.’’ Maselli says the results of his firm’s focus groups with million-dollar clients revealed that all respondents found their current advisor through referrals. Much less effective or much harder to do well, he says, are techniques such as cold calling; seminars and marketing, direct mail, cold walking, niche marketing and industry target marketing, and social media, at least for now.

“This leaves you with referrals.  And to get better at referrals, you need to start by understanding and mastering the mind of the client.’’

First « 1 2 3 » Next