The idea is that if we do a great job, we will get heaps of referrals. And if we aren't satisfied with the amount of referrals we are getting? Work harder.
But this advice is wrong. You could be doing an awesome job but not doing a few very simple steps. And if you do these steps, you will get all the referrals you deserve (and worked hard to earn).
But, before we talk about these, lets look at the research.
60% = never brings it up, don't ask, didn't know they wanted them.
81% = their method of referral is giving out a name and number.
90% = clients cannot define why we are different. What separates you from other brokers?
So, based on the research and focus groups, here are the top 7 reasons:
•I've never been asked
•I don't understand who my broker wants to work with
•I don't know how to explain what they do
•I don't know how to make the introduction
•I am too private
•The risk I take if the relationship/referral doesn't work out
•I haven't had a referable experience.
Reason 5-7 are "land mines" - they won't give you referrals (refer part 1).
5 characteristics of someone that might be a good referrer:
•They have to value their experience enough that they would refer.
•They have to fully understand your services and all of your products. Can they list all our services and also articulate why we are different.
•They have to know that your firm is growing (I.e. you want more clients) and who an idea client is.
•They need to know how to make an effective referral
•They have to be comfortable talking about and making referrals.
There are two things you must do in our to solve this problem - which I will cover in Part 3.