As Cold Calling Becomes Less Effective, What Will Take It's Place? by Bill Cates America's Referral Coach This is part one of a two-part article. Cold calling is clearly dying. It's tougher than ever before to reach people through cold calls and it's clearly not the way your prospects truly want to meet you. As you go from a broker (who usually just manages transactions) to a financial consultant (who manages relationships), you must have a more sophisticated way of meeting prospects. Enter the referral. It's an age old method of prospecting, but significantly under utilized in our industry. More often than not, when you reach a prospect through a cold call, you usually get the cold shoulder. But when you reach a prospect through a referral, you usually get a conversation. "Cold calling is a game that wears even the best down. Referral's is a relationship game that builds everyone up." - Bill Cates Most reps know that building a long term career through referrals is the most effective way, but they don't usually master the referral process. And they don't usually have a true referral mindset. Two Main Sources of Unlimited Referrals Your two main sources for referrals are happy clients and centers of influence (COI's = those who may never become clients, but can refer many to you). The best time to ask a client for a referral is when you've provided value that's been recognized by your client. It's important to bring value to your clients at every interaction. When they express satisfaction with your performance (not the market's performance, your service), it's time to ask for referrals. If you're not sure value is being recognized, ask them what they value in your relationship. Keep delivering value and keep asking. My financial advisor takes me to lunch (sometimes golfing) at least once a year to review my portfolio face to face. After we review my situation, and he knows I'm satisfied, he asks me for referrals. He's tapped into the lifetime value of me, not just through the business I continue to do with him, but through the referrals I've given to him over the years. If you've been in this business for awhile, and you have many satisfied clients, you're probably sitting on a gold mine that is going untapped. It's time to hit the jackpot with referrals! Your Own Personal Sales Force Centers of Influence are people who are generally unlikely to become clients, but have the ability to refer high-quality prospects your way. Some typical COI's CPA's and attorneys. More creative COI's come in the form of clergy, association presidents, successful real estate agents, bankers, union leaders, and high-profile business leaders - not to mention family and friends. Look for people with whom you can establish mutually beneficial relationships. Do what you can to serve them - with referrals, other contacts, and quality advice. Make sure they understand who you are looking for, how you serve them, and how you'd like to be introduced. Form 10-12 strong relationships that you can nurture over time and you'll have your own personal sales force-- and you won't have to pay them a dime in commission. Bill Cates is the author of Unlimited Referrals and president of The Referral Marketing Institute. He works with financial service companies to build a more committed sales force with their reps to attract higher quality clients through referrals and other powerful marketing strategies. To learn more about Bill's great books and tapes, go to Bill's web site or give him a call. EMAIL:BillCates@ReferralCoach.com PHONE:800-488-5464 WEB SITE: www.ReferralCoach.com © 1999 by Bill Cates "The Referral Marketing Institute"