Mentors who are not necessarily in the investment industry but
are well connected, can be a good referral source for younger advisors.
Keep meticulous track of your conversations with other
professionals and referrals you have given and received. Stay in touch
with your top 50 potential referral sources once a quarter and keep your
promises. Being reliable showcases your credibility and commitment,
which is at the foundation of earning useful vs. useless referrals.
Finally, understanding your ideal client, managing your time
effectively and developing good listening skills all help in building
a book of business based on referrals at the start.
Declining a less-than-ideal referral
Despite their good intentions, clients or colleagues may refer
you to people who you simply don’t like or choose not to work
with. When this happens, thank the person who made the referral
but be clear that another professional would better serve the
prospect as your approaches differ, and leave it at that.
Then, contact the prospective client and thank them for their
interest in your services and reiterate your comments to them.
Suggest that you would be pleased to suggest other professionals
who may be better suited to help them. This way, you burn no
bridges and the next referral you receive from the same referee
may become a valuable client.
Referrals grow with trust earned over time and are largely
fueled by an advisors’ performance, demonstrated client
commitment and “likeability”.
Many advisors will happily receive referrals after working hard
to earn trust but can’t always summon the nerve to ask for them.
And when they do, it’s on an ad hoc basis.
Despite their skill in establishing client relationship
management systems and marketing campaigns, asking for
referrals is at best an event for many, not a process.
The onus is usually on the advisor to ask for referrals, although
some “dream” clients readily help their advisors by referring
without being asked, largely because they want the advisor
(and their referrals) to succeed. Few new clients, however, ask
themselves, “I’ve just invested one million dollars with my advisor.
But how can I help him or her further?”
Despite their occasional reluctance, most advisors I
interviewed agreed that asking for referrals is part of their core
For more information contact:
WEDNESDAY APRIL 27 & THURSDAY APRIL 28, 2016
SHERATON CENTRE TORONTO
Join an Exclusive Q&A
Session with Regulators:
OSC, AMF, ASC, BCSC