Everyone would like their clients to send referrals in their direction. Put yourself in your client’s shoes for a moment: If someone said: “I just won the lottery and I need someone to help me invest the money” your name might come to mind. Except for that situation, few friends are that obvious. Your client needs some prompting to come up with names.
Everyone was trained in how to ask for referrals. One basic rule is to be as specific as possible. You are looking for money in motion, or money that could be in motion.
Let us look at 10 scenarios, each starting with the words “Who do you know?”
1. Who do you know that is invested in the stock market and dissatisfied with their results? This is followed by: “I would be interested in talking with them.” After the first six months of 2022 delivered a 20% decline in the S&P 500, everyone knows people who complain about the stock market. Note: You didn’t say you could do any better, you said you were interested in talking with them.
2. Who do you know at work that is retiring in the next 12 months? Many people will be depending on Social Security and the return on their retirement assets to support them in retirement. Now that inflation has returned and store prices are higher, some people might be wondering if retiring now is a good idea. They may not know how long their retirement assets might last. You can help answer that question.
3. Who do you know that has recently joined the company? It’s been said people will have about a dozen jobs during their working career. If someone was recently hired, that means they stopped working someplace else. Since retirement plan assets are often portable, there is rollover potential.
4. Who do you know that recently had a child? Everyone should know someone. It might be your clients’ children or grandchildren. If your client is younger, it might be a college friend. They will need to start education planning early. There may also be a need for life insurance for this young family.
5. Who do you know that recently lost a spouse? Loss can be expanded to include not only death, but divorce. It’s an emotional time. The person might not know where to turn for advice. They are on alert, hoping to avoid predatory types. If a longstanding client refers you, that can be the ideal introduction.
6. Who do you know that is selling their business? This is often considered the “whale” in prospecting terms. It comes along rarely, and advisors often don’t know how to find these situations. The pandemic has gotten many people rethinking their priorities. They might need help valuing the business, selling it and reinvesting the proceeds. You and your firm might be able to help.
7. Who do you know that has recently gotten married? Regardless of age, when people marry, their finances often need attention. Do two bankbooks become one? Do they keep their finances separate? There are financial planning issues that need to be discussed.