Move Up the Economic Ladder
Have you noticed that most clients tend to refer laterally and down on the economic ladder? What’s up with that?
Your thriving advisory practice depends not only on keeping your current clients but also on having those clients refer others who fit your ideal profile.
Many advisors, however, encounter a persistent problem: their best clients sometimes refer people who aren’t an ideal match. Can you relate?
Read or watch the full YouTube video below.
If you find your referral pipeline is filled with less-than-perfect prospects, you’re not alone. The underlying issue usually isn’t a lack of referability, but a lack of knowledge for your clients and referral partners about who you serve best.
This video explores practical steps to shift your client referrals upward on the economic ladder, ensuring that they align more closely with your ideal client profile and ultimately benefit both your practice and those you serve.
Educate Your Clients
Do your B+, A, and A+ clients – the ones you’d like to replicate – know who you serve the best? Have you educated them on the demographic and psychographic attributes of a right-fit client?
You should never assume your clients know exactly whom you’re best positioned to help. Inform them directly and specifically. Tell your top clients—your B+,A, and A+ relationships that they are, in fact, your ideal clients. Not only is this a compliment that they will appreciate, it also helps them begin to think about who else should know about your important work.
Let your clients know that your processes and service model are designed for people in situations similar to theirs, whether that’s certain types of families, business owners, executives, retirees, or professionals. Feel free to get as specific as you want.
You can reassure these clients that you don’t expect them to always know the financial specifics of their peers. Qualifying language such as, “I’m happy to see if I can be a resource for those you care about” removes the pressure from both parties and leaves the door open for right-fit introductions.
Always Be in Qualifying Mode
You always want to be in a qualifying mode. When a referral prospect reaches out, have an exploratory conversation to determine if there’s a genuine match. If there is, proceed confidently. If not, don’t feel obliged to press forward out of a sense of obligation and neediness.
If the match isn’t right, immediately let the referring client know that you had a good conversation, but after discussing the fit, determined that, “The timing isn’t right for us to be working together.” Thank them for their trust and reaffirm your appreciation, all while maintaining confidentiality.
This short, respectful communication (usually a voice mail you leave for them) lets clients know your integrity: you only take on genuinely right fit clients, ensuring a win-win outcome.
Build a Professional Network for Offboarding
When a referred prospect isn’t a match for your business, you can point them to someone who might be. This maintains goodwill with both the prospect and the client who made the referral and demonstrates your commitment to finding the perfect fit for every client scenario.
The Two-Part Formula for Better Referrals
Here are the two common denominators of advisors who do a good job in only taking on clients that fit:
Clarity: Make sure you are extremely clear about who qualifies as a right-fit client for you. Vague intentions produce vague results, while clear intentions produce clear results.
Teaching: Teach your right-fit clients and professional partners about your ideal client profile.
Final Thoughts If you want to increase the quality of your referrals, make client education and rigorous qualification central to your process. Be explicit and consistent about who your processes are designed to serve the best. The clarity and discipline you exhibit will echo in the introductions your clients make, ultimately elevating your prospect pool and creating greater value for everyone involved.
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