ARE YOU PROACTIVE OR REACTIVE WITH REFERRALS?

Would you like the number of referrals you receive to increase? Sure, who wouldn’t, right? Well, it’s likely you’re sitting on a gold mine of happy clients who are great sources. However, in order to gain more referrals, you must first determine Are You Proactive Or Reactive With Referrals?

There are two types of referrals: proactive and reactive. Reactive referrals come to you even though you don’t ask for them. As long as you do good work for people and they recognize the value of your work, you will receive referrals. If you aren’t getting many referrals this way, you need to take a closer look at the value you bring to your clients. Reactive referrals are a clear barometer of your value and client service.

However, there can be two problems with reactive referrals:

    1. You’re not getting enough referrals 
    2. The prospects you do get don’t fit within your practice

If you’re not getting enough referrals, or the referrals you do get don’t fit within your practice, then you need to be proactive with referrals. Being proactive with referrals means you need to ask for referrals on a regular basis.

Another reason to be proactive with referrals is what I call the 60% factor. Your numbers may differ, but the principle stays the same.

Approximately 20% of your clients will give you referrals. Your clients like and trust you, thus referring you comes naturally to them.

Approximately 20% of your clients won’t give you referrals no matter what you do. These clients are not wired in that way and there’s nothing you can do about this situation — so don’t spend your energy trying to gain referrals from these clients.

Then there are the other 60% of your clients who will give you referrals, but they need to be asked. You could be getting referrals from as many as 80% of your clients if you use a proven system for asking for referrals. You’re sitting on a gold mine of happy clients who need you to be proactive to nudge the process along. Many of your clients would love to help you bring your value to others they know, they just need you to get the process started.

To prove this theory, one of my largest clients conducted a survey of their clients. They discovered 87% of their clients would be happy to recommend their financial advisor. That’s huge! But only 11% had been asked to do so. That’s a crime! What opportunities are you missing?