How to Get Client Referrals as a Financial Advisor (2024)

A Financial Advisor's Journey to Success

Did you know that there are highly effective strategies financial advisors can use to generate leads through word-of-mouth referrals? 

Well, guess what?

Initially, we lacked this knowledge and underwent years of struggle, accepting meager commissions that barely sustained us. At times, we were on the verge of quitting, and then the global financial crisis compounded our difficulties. But after all that struggle and hardship, we finally figured it out - the foundation that sets you free.

In all honesty, the principles that underpinned these strategies worked millennials ago and continue to be effective today for any type of professional service-based business. 

The best part?

You don't need to master all of the strategies we're about to dive into. Just pick the ones that resonate with your personality and selling style, and use them consistently - and you'll be stacking the odds in your favor to build a million-dollar insurance or financial advisory practice.

Important! Before diving into any further details:

At the end of this guide, you'll be armed with the knowledge you need to tackle one of the biggest challenges faced by almost every advisor out there - the issue of name flow. But here's the deal: if you want to succeed in insurance and financial advisory sales, you've got to take a holistic approach - that means focusing on building your capacity in all aspects of the sales cycle, not just one. Only when your skills are honed across the board, will you be in the best possible position to grow your practice and achieve the lasting success you crave.

Strategy 1: Just Ask (Closed Mouths Don't Get Feed)

Yes, we know it sounds too easy (and probably doesn't meet your sophistication criteria to be called a strategy), but trust us, consider this as the golden rule of referral generation. Because:

You can have the best services in the world, but if you don't ask your clients for referrals, you're leaving a ton of money on the table.

But here's the catch - you have to ask in a way that's genuine and authentic. 

Don't be pushy or salesy - just let your clients know that you're looking to grow your business and that you would appreciate any referrals they can give you. And make it easy for them - provide them with your business cards or brochures that they can pass along to their friends and family.

Now, some of you might be thinking, "But, what if they say no?" Well, that's okay too. Not everyone is comfortable giving referrals, and that's perfectly fine. Just be understanding and gracious, and don't let it get you down.

But here's the thing:

If you never ask, you'll never get it. So put yourself out there, and ask for those referrals.

Pro-tip: We recommend you ask your clients for referrals from the onset of your meetings. Why? 

Because asking for referrals early on in your client meetings sets the tone that you're focused on building a long-term relationship with them and that you value their trust and confidence in your services. Another benefit is that it can help you build momentum and keep the referrals coming in consistently. If you wait too long to ask, your clients may forget or lose interest in referring you to others.

Strategy 2: Prospect Up To Turbo-Boost Client Referrals  

Before digging in, get this:

Your success in this business would be tied to the value of your clients. A wealthy client has more than just a big bank account - they come with an extensive network of high-net-worth individuals who could potentially become your clients too. That's where prospecting-up comes in.

What's "prospecting -up,"  you ask?

It's simple: instead of asking for a referral to someone similar to your current clients, ask for a referral to someone who's a step up. Someone more successful, more affluent, or has a larger network. doing this, will not only expand your referral network but also increase the potential value of each referral.

Think of it like climbing a ladder - you start at the bottom and work your way up. In the same way, you start with your current client base and then use their connections to reach even higher levels of success. 

But don't just stop there. 

Once you get that referral, you have to go all in! 

Give them VIP treatment. Roll out the red carpet. Do whatever it takes to impress them and exceed their expectations. And when that happens, you'll get bigger pay checks! So don't just settle for mediocrity. Go for the gold and start prospecting up!

Strategy 3: Pay It Forward

We are not sentimental people, and we are not those to relegate logic to the sidelines, but hear us out: when it comes to generating referrals, the principle of "paying it forward" can be surprisingly effective.

It is so because of social psychology and the concept of reciprocity -  a social norm of responding to a positive action with another positive action, rewarding kind actions.

Think of it like planting a seed. When you do something kind or helpful for someone, without expecting anything in return, you create a sense of indebtedness in that person. They feel compelled to reciprocate, to pay you back in some way.

Now, we're not saying you should do things solely to get referrals. That's not the point. The point is to be genuinely helpful and generous, without any ulterior motive. And when you do, people will remember it. They'll appreciate it. And when they know someone who needs financial advice, they'll think of you.

So, what can you do to pay it forward? Here are some ideas:

• Connect people: If you know someone who needs a service or product that someone else offers, introduce them. You'll be helping both parties, and they'll remember your kindness.

• Volunteer: Find a cause that resonates with you and give your time or resources. Not only will you feel good about doing something positive for your community, but you'll also make connections with other volunteers who may need your services or know someone who does.

• Share knowledge: If you come across an article, book, or podcast that you think could be helpful to someone you know, share it with them. You'll be seen as a valuable resource and someone who cares about their success.

We don't know if you've noticed the keywords: someone, people, and not just  client or customer.

That's right. 

Go beyond your clients and help others, and you'll be expanding your reach and increasing the chances that someone will remember you when they or someone they know needs financial advice.

 Also, don't just stop at these three ideas - get creative and come up with ways to pay it forward. 

Maybe you could organize a charity event, donate a portion of your profits to a cause you care about, or even mentor a young person who is interested in a career in finance. The possibilities are endless, and the more unique and personal your approach, the more memorable you'll be to those you help. 

Remember, the key is to be genuine and selfless in your actions. 

Don't expect anything in return, and don't be disappointed if you don't immediately see results. Building relationships takes time and effort, but in the end, it's worth it. By paying it forward, you'll be creating a network of people who appreciate and trust you, and who will be happy to refer you to others.

 Strategy 4: Embrace Digital Disruption

An old mentor shared this analogy:  

Digital disruption  is like the wave that's crashing onto the shore of the financial services industry. It's a force that can either wipe you out or propel you forward. The choice is yours.

While it may not seem immediately obvious, embracing digital disruption can play a significant role in making client referrals more convenient and effective.

Check this out:

For one, digital tools like social media and email make it easy for your satisfied clients to refer you to their friends and family. You can encourage them to share your content or refer others through online channels, making the process faster and more convenient. And perhaps most importantly, it allows you to stay top-of-mind with your clients and prospects, which is crucial in a competitive industry.

To round off…

Strategy 5: Be Always Learning 

 Albert Einstein knew what he was talking about when he said “When you stop learning you start dying”. And in the cutthroat world of client referrals, that statement couldn't be more true.

The financial industry is constantly changing, with new regulations, technologies, and customer preferences popping up left and right. That's why it's essential to stay ahead of the curve by adopting a growth mindset and committing to lifelong learning.

But let's face it - learning can feel like a chore. It's like being forced to eat your vegetables when all you want is dessert. That's why you need to find a training method that's both creative and straight to the point.

Enter the Taylor method. This sales training not only teaches advisors high percentage strategies with repeatable language to help you create a consistent stream of new prospects - it goes above and beyond to teach you the entire sales cycle.

First up is the Fact Find. This is a process that will guide you through fact-finding interviews, quelling objections before they arise. With our process, your prospects will be the ones telling you there is a problem. That's right - you'll be so damn good that your prospects will practically be begging you to solve their problems.

Next up is the Opportunity phase. This is where you'll uncover every single opportunity for a sale. You'll become a facilitator of solutions, not just another sleazy salesperson trying to push a product.

Finally, we have the Close. This is where the magic happens. With the groundwork laid by the previous phases, presenting solutions that get clients to act becomes a piece of cake. It's often the easiest and most rewarding phase of this sales system -  with the Taylor method in your toolkit. 

So remember financial advisors: keep learning, keep growing, and never stop improving. And with the Taylor method in your back pocket, you'll be unstoppable.