Remember that episode of “Seinfeld” where Uncle Leo gets Jerry’s father a last-minute appointment with a top notch back doctor? And when Jerry’s father accuses the office of stealing his wallet, Uncle Leo is mortified since he gave a personal recommendation and asked the back specialist for such a big favor.
Although this scenario was from a sitcom, it is not far off from the view of the financial advisory world held by Mike Garrison, a business coach and best-selling author. In his just-released book, “Can I Borrow Your Car?” Mike highlights the importance of knowing and trusting both parties in a referral: who you’re referring and who you’re referring to. If you “loan” a key relationship out by making an introduction, you want absolute confidence the individual will come back to you without dings, dents, or scrapes.
One of the first things Mike said to me when we began working together a few years back has really stuck in my brain: “Mike, if I refer someone to you, I want them back.” In other words, it’s the opposite of Uncle Leo’s experience. Uncle Leo probably destroyed whatever relationship he had with this top doctor after the wallet debacle, and he can probably never go back himself.
Our readers and followers know the emphasis we at Blueprint Investment Partners place on being an uncommonly great partner to our financial advisor clients. This is evidenced by our “The Elite Advisor Playbook” and advisor practice management blogs.
A key theme we champion for top advisors is efficient repeatability, as well as discipline.
It’s the predictable referrals, Mike says, which are the holy grail of a successful and sustainable business. In his book, he highlights the steps advisors can take to create thoughtful, consistent, and predictable referral streams.
I’ve highlighted some of the key takeaways and action steps in the remainder of this blog.
How can we expect a seed planted yesterday to bear fruit tomorrow? There’s some work required in the in-between time, such as watering and weeding.
The same concept applies to referrals. The process requires careful and thoughtful planning.
Just like any other type of marketing, predictable referrals follow rules and use data. However, truly successful and sustainable referral systems are fun, easy, and intently focused on reducing the risk (perceived and actual) to all participants. In other words, a referral can be made, or requested, in the context of normal conversation and there is little to no risk of ruining an important relationship.
Just as ingredients matter for a sustainable investment plan, they are just as critical for a successful and predictable referral strategy. The planning aspect of building your strategy is crucial, as is focusing on the right segment of your network and client base. The planning, development, discipline, and ingredients are as critical to growing a successful referral stream as the watering and pruning is to the tree.
From an investment perspective, Blueprint has written about market predictions being a waste of time. We think they are simply unnecessary noise when you have a predetermined and disciplined plan in place.
A similar plan can be established to streamline referrals, and it does not have to be complicated.
In fact, less is more, according to Mike. A handful of a financial advisor’s clients should become your core focus when creating a predictable referral strategy. Specifically, Mike suggests the following steps for advisors:
By this point, you should hopefully have 5-10 potential centers of influence. Next steps are to:
Mike has made a career out of coaching financial advisors on practice efficiency and building referral strategies. His book and corresponding website may be a good resource for you.
Additionally, feel free to reach out to Blueprint to discuss the practice management services we offer to our financial advisor partners.