Requesting Referrals the Right Way

Many financial advisors ask for referrals in a way that makes them look desperate, clichéd and often invasive, Sara Grillo writes on Advisor Perspectives. However, advisors can use social media in a way that avoids the appearance of a “social assault” and create a more targeted client base, she writes. 

LinkedIn to the Rescue

Approaching an existing client and asking for any referral can seem presumptuous, and the often contrived ways in which advisors approach the subject can irritate the very clients they are trying to reach out to, according to Grillo, Chartered Financial Analyst and financial writer. Furthermore, it puts the burden of work on the client — and can make them feel awkward, she writes. 

Many advisors use social media for marketing but fail to make use of the vast amounts of data that is readily available often through just a simple search away, according to Grillo. On LinkedIn, searches can be customized using profession and geography and can get further filtered by existing connections, she writes. This allows advisors to find potential prospects who are connected to their clients or centers of influence, according to Grillo. 

Once they find a potential prospect, advisors can use social media to learn about the prospect’s background and find ways in which they can help them, she writes. Then, when the advisor approaches their client to ask for a referral, it is targeted and offers value, Grillo writes. 

This puts control in advisors’ hands while presenting them as a focused individual seeking specific clients rather than desperately asking for anyone, she writes. Using this method creates more opportunities while reducing pretense and guesswork, according to Grillo. 


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