Topics: Personal Development, Professional Development, Financial Success, Goal Achievement

In todays fast paced, rapidly changing, highly competitive world, we are all stretched for time. You may not have 5 minutes but surely you have 4 minutes to improve some aspect of your business or your life, right? That's why we created the concept of 4 Minutes™.

What is 4 Minutes™ about?

A message delivered in 4 minutes or less to:

In ways that maximize your potential, performance and happiness to lead you on a journey of:

How is it delivered?

Here is a sample: Read this exclusive 8 question interview Bob did recently about how advisors can get more referrals in this environment...

1. What are you hearing from advisors these days?

Bob: Most advisors I talk to seem to fall in one of two camps:

One group is so shell shocked and battle weary that they are just now starting to come out from underneath their desks - though they are still dealing with issues of denial, anger, guilt and in some cases depression or what I call "toxic shame" about what has happened to client's dreams, retirement plans and so forth because they are now having to go back to the drawing board with everything. The other group has remained surprisingly resilient and opportunistic in this environment. They are showing client leadership. They seem to be taking things more in stride and are seeing more assets from the competition. While other advisors have abandoned their post and slowed contact, they are gaining market share by getting referrals and bringing in new assets from people they never would have gotten to if the markets had not go down so much.

2. What approaches that you've seen over the years have lost their effectiveness? Why?

Bob: First, I think its important to realize that any referral approach is better than no approach. So effectiveness is really about implementation and being accountable for actually asking more than anything else. And the fact is that most advisors don't have a referral strategy and therefore are simply not asking. Its like wanting to get in better shape physically but not belonging to a gym, not setting a work out schedule, not performing the right exercises to maximize your results - and of course not recognizing that maybe what you need is a personal trainer - a coach that will help you develop the best strategy and be accountable for the actions that will get the results. Now having said that, the least effective approaches are the ones that are either too broad or too vague. A perfect example:

"Who do you know that could use my services?" Most of the time if you use this you will get that deer in the headlights blank stare. Or you will get the name of the friendliest person they know that will not get offended by your call.

The other approach that has lost effectiveness is any request that places too much emphasis on the needs of the advisor as opposed to the client. An example of this would be "I get paid two ways, one is referrals". The client is really not concerned with paying you more - and in this environment, its even more of a turn off.

3. What new tactics are gaining traction?

Bob: One, advisors that have a well defined niche market with specialized knowledge and are seen as "go to experts" among their clientele tend to have better referral results that those that don't. So as far as tactics, they are able to project a more powerful and compelling message to targeted prospects. For example, lets say that you have developed a niche as a "Sudden Wealth Expert" - helping people that get windfalls of some kind. It might be from an inheritance, sale of a business or even professional athletes that get those big signing bonuses. If you saw the recent NFL draft this year you witnessed the number 1 pick Matthew Stafford - QB out of my home town school University of Georgia, get a contract with the Detroit Lions valued at 78 million dollars paid out over 6 years with 41 million of that guaranteed. You think he will need some financial and investment planning with that - knowing he might get injured day one and never be able to play again? And by the way there were 32 teams picking in 7 rounds - so 224 twenty two year old guys just came into a bundle of money.

Two, advisors with a strong overall business and service model will do better with referrals. We might call this "refer ability". We're talking about having a client advisory process not just selling a product. We're talking about having a proactive high touch service model that creates raving fans not just returning phone calls. Boomers like simplicity. If you look at what Fidelity is doing, its almost scary how simple there approach is - its give us x amount and we'll give you x amount monthly with a turn key portfolio. And surveys show that affluent clients actually view that model as a full service model - even though they may talk with a different person each time they call and they are not really saving that much on fees. So we have to stay one step ahead to define what full service really is and make sure clients feel that extra personal service level to boost our "refer ability".

4. What are the biggest misconceptions advisors hold about seeking referrals?

Bob:That they risk damaging or even ruining the relationship with a client if they ask for a referral. Not only does asking not offend the vast majority of clients, it can actually help strengthen the advisor client relationship.. It actually drives client loyalty.

5. How has the referral conversation changed in light of the terrible performance of portfolios in the recession?

Bob:There is no denying that clients and most advisors are in a down mood. But it's really dysfunctional if you think about it. We all know intellectually and through experience that when everyone feels down we can buy stocks at more attractive prices and we are actually in a position to look like a hero with anyone we can get to come aboard during a bear market. Yet there is tremendous temptation to join the chorus with clients and sit on our hands.

So it's important to a certain extent to try to change the subject as much as possible when approaching clients. The fact is that not only do clients have the same problems they did before, they now have more problems. Think about it, all these baby boomers just had their retirement dreams shattered so do they need more help now or less help?

When it comes to referrals, advisors need to focus less on the portfolios now and more on how what has happened impacting clients real life. Ask more questions. Find out who they know that are now really scared and need the help of a professional more than ever. And if you happened to have been fortunate to have a strategy or approach that has reallly outperformed the market, then you can showcase that in your referral conversations.

6. Why do so many advisors continue to admit they don't have a good referral strategy and seem to not do anything about it?

Bob: It all boils down to mindset. You have to get to a pain point where you realize that its no longer acceptable to go without a referral strategy. What else are you realistically going to do? Cold calling, mailers, seminars? Referrals are the single fastest way to reach the clients you're looking for. Then work on building your confidence muscles, get clear on who you are after as clients and find a way to ask that matches your unique personality, style of business and expertise.

7. Is there referral reluctance?

Bob: Yes, picture this: a surgeon who has just lost a patient on the operating table- then turns to the next of kin and asks "who else do you know I can help?" That's probably not going to fly. If on the other hand you can change your mind set and get a different picture and perspective - get grounded in the reality of what has happened and beyond the emotional reaction to what is happening, you can see that you can do a lot of good by connecting to new people right now that are not getting the attention or the service or the advice they need to navigate these dangerous waters. Money will flow to the stronger advisors in this environment and to those that stay positive.

8. If advisors could take one step today to improve their referrals, admittedly a small step in a bigger journey, what should that first step be?

Bob: Take the time to develop your referral strategy. That's what I do for advisors in my one on one coaching. Don't put it off - this is the prospecting opportunity of a lifetime - but it's a window that will be closing. And we'll all be looking back in 3 years and saying "What was I thinking". I should have been out there with evangelistic zeal gathering new assets and developing new client relationships through referrals.

If you are serous about developing a customized referral strategy - see our Coaching for Advisors page.

And stay tuned for more 4 Minutes™ features on this part of the site, because YOU'RE ON...