Bill Cates: Getting More Referrals Without Asking for Them
3 Tips From Cates on How to be More Referrable:
Make it easy for clients to describe in layman's terms how you've helped them
Creating client "transformations" leads to them wanting to help you and family/friends
Ask clients what they find most valuable and if there are areas you can improve
As Cates identifies throughout the article, the most important part of getting referrals without asking for them is to help clients clearly identify and easily describe how you've helped them. I'll get into more detail below, but you can read the full article HERE.
Make it Easy
Most clients appreciate the detailed planning their advisor does for them, but few can explain it. That's why they pay an advisor to do it for them and take that stress off their plate! A simple example... It's a lot easier for a client to tell their friend you saved them $50k in taxes from the money mom left them than to try and explain to their friend the ins and outs of the inherited IRA "out in 10" vs taking a lump sum.
Creating Client "Transformations"
Taking the dream vacation, buying the lake home, or enjoying retirement instead of worrying about running out of money. These are examples of items that can go on a client's bucket list, vision board, or goal sheet. Helping clients achieve their goals, live their dream retirement, and regularly congratulating them on the progress they've made vs when you met is a surefire way to increase referrals without asking.
Regular Check Ins
Cates call this "the value discussion". It ensures you're meeting a client's expectations and makes them verbalize the value they find working with you. If they feel your work has transformed their life for the better and can easily identify the area(s) you helped them, then a regular reminder where they're driving the conversation keeps you top of mind for referrals.
Spotlight Client Solution*
8.28% Lifetime Cash Flow at Age 65
A 65 year old can deposit $100k with Talcott and start receiving $8,280/yr of income for life. Alternatively, you'd have to earn an average net return of 7.57% in investments to generate that cash flow and have it last until they're 90 years old. Live to 95 and that jumps to 8.17%.
This cash flow generates more income with less money than traditional fixed income. Pairing that with increasing equity exposure leads to better long-term portfolio outcomes.
Notable Client Solutions*
6.00% Fixed or 10% Locked SP Cap
Revol One's focus on high consumer value annuities is gaining serious traction.
Their MYGA is topping the charts with a 6.00% rate.
Their 7 year FIA has a 10% S&P annual cap that is guaranteed at 10% for all 7 years of the surrender schedule.
Led by mid 2000s CEO of Allianz, Mark Zesbaugh, they're making waves in the industry and have proven leadership.
12% S&P Annual Cap (Fee-Based)
MassMutual Ascend's Index Protector 5 tops the charts for fee-based growth.
12% S&P Annual Cap
No Surrender Charges (5yr MVA)
This product becomes even more attractive if interest rates come down. A declining interest rate environment would positively affect the client's cash surrender value since the MVA works like a bond.
*Rates may be subject to premium banding. Products may not be available in all states. Replacement must be suitable and meet all requirements.
At Foundational Income, we strive to bring relevant topics and solutions to your fingertips in a straightforward way. We don’t see the need to keep products nor carriers a mystery. If you’d like to discuss any of this in more detail, give us a call!