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Finding the Middle Class Millionaires
After reading the compelling and recently published The Middle Class Millionaire by Russ Alan Prince and Lewis Schiff, I have compared notes with the extensive research done by Thomas J Stanley, from another book by Prince, and present some ideas for you on places to meet people with a higher net worth. Pick one or two of these ideas and stick at it!
- Network more with and develop more referral partnerships with attorneys, wealth management advisors, and especially accountants.
MCMs hire a support team: legal advice, financial wealth management, and tax guidance. They know they don’t have the time or skill to be jacks of all trades. In Thomas J Stanley’s The Millionaire Mind, he found that the number one activity engaged in by 85% of the millionaires he studied was not going on exotic vacations but consulting a tax expert! Are you meeting any CPAs?
59% of them had consulted with their investment advisor in the past 30 days. According to Prince in another of his books, Cultivating the Middle Class Millionaire, almost 73% of MCMs said that working with a high-quality investment advisor was a major concern.
Interestingly, MCMs prefer to be referred by their advisors (54%) than by their friends (30%) or clients.
The 8 Things It Takes to Get Referrals
If getting plenty of referrals was really that easy, everyone would be doing it. So what does it take?
Last week in preparation for some meetings with company leaders, I thought again about who I’ve worked with over the years and why they have and haven’t got the large increase in referrals they wanted.
If you’re not getting the quality and amount of referrals you want, be brutally honest with yourself and look carefully for what you need to address:
1. OPEN
- To learning, coaching and changing. Most people consider themselves to be quite coachable, but the truth is many of us are not that open to doing things differently. This is partly because sometimes it means we have to admit that we’re not very good at something or that part of our business is weak or that – heaven forbid – we’re not perfect!
Are you really willing to grow your business differently? Some advisors are not open to get out of their comfort zone by asking or put in the time needed to develop great centres of influence. Resistance to change is human. Is it getting in your way?
2. EARNED
Nobody refers business as usual. I worked recently with an adviser in California who struggled to get referrals at first because he had been too transactional over the years with many of his clients. Not until his service improved and he spent more time building stronger relationships with his clients did he start to get good feedback such that he knew he had earned the right to ask for referrals.
What kind of value do you hear your clients tell you they are getting from working with you?
3. MOTIVATION
The spoils almost always go to the most motivated. How jazzed are you about your goals? Drive helps you persist on those flat days and work on your referral asking when the results don’t go as desired.
How enthusiastically do you talk about what you do? Sales is a transfer of enthusiasm and you are a magnet – positive, negative or neutral. People are much more likely to recommend you when they can tell you enjoy what you do.
Are you willing to invest money in getting better at referrals? The only people I coach who see results almost always pay for it themselves.
Do you have a job or a vocation? As I wrote about recently when I summarized Daniel Pink’s book, Drive, purpose is a motivator. The more you connect your livelihood to helping others and making a difference, the more compelling and congruently you will communicate. This makes you a more effective asker (see point 5).
4. BELIEF
I think this is the most important point. The stronger you believe in how much you can help others, the sillier it gets not to ask for referrals. Why on earth would people not refer you? Why on earth would you not ask?
If you don’t like the result you are getting with referrals, it is because you have a belief somewhere that is not helping.
Your belief in yourself will push you to keep asking for bigger and better, to stop playing small, to show more courage, and to get out of your comfort zone.
Your end goal is to expect others to recommend you. (This won’t happen every time, but so what?) When you ask and expect others to help, you are infinitely more likely to get a favourable response.
5. ASK
- For what you want. I know this sounds screamingly obvious but most advisors do not ask for referrals. Yet you cannot grow a business solely on unsolicited business. You cannot get all you want in life without asking. The obstacles are almost all in points 1-4.
(If you use lack of time as an excuse, that’s another smokescreen for not taking responsibility to make changes and to think big enough that you are capable or deserving to get the results you say you want).
6. WORDING
It does make a difference what you say. For quite a few advisers the one obstacle is simply that they have never found wording they can get comfortable with.
Read through the 6 Steps to a Fearless Referral Conversation either from my blogs or my book and make sure you use at least the steps about being specific and making sure your referral source is comfortable with how to open the door for you.
7. PRACTICE
How many hours have you put into developing an effective referral conversation? How else can you hope to play the tune? Remember, knowing isn’t doing. Only action (practice) counts.
8. HABITS
Is asking a habit for you? Do you pre-plan what you want to ask for before you hold meetings? Ultimately you want to hardwire your brain so that asking for referrals is second nature. This might take a while, but since it’s everyone’s favourite way to get business, isn’t it worth it?
Please forward this on.
Author: Matt Anderson, The Referral Authority, Author of Fearless Referrals
Copyright 2011.
How to Avoid ‘Forgetting’ to Ask for Referrals
What’s the #1 excuse people use for not asking for referrals?
“I always forget to ask.”
Most of the time, what they really mean is:
“I am not comfortable asking.”
Getting comfortable asking is the most important piece to developing a thriving referral business. That’s what chapters 1-4 address.
Using a written agenda for meetings provides one solution to those who are comfortable asking for referrals or who are at least getting more comfortable. Although, come to think if it, even if you are not asking for referrals, your business will benefit. I promise.
Having a formal agenda may sound pretty trivial; but for many of you reading this, it is not (I’m not going to waste your time or mine here!).
There are many reasons to have a written agenda. Few top sales professionals are naturally organized and few have the time to want to spend on creating agendas. But I believe it is another tool that will help you get more referrals.
*A sample skeleton agenda and script are below.
The Advantages to Using an Agenda:
1. From a referral standpoint, the intent here is to plant the seed that there is more to the meeting than just what may be obvious (see sample below) and that there will be some kind of ‘value discussion’ that you can use to pivot to having a referral conversation provided your client is happy,
2. Using an agenda will help to make sure you commit to including a value discussion and not forget again or run the meeting too long.
3. It will help you see a referral conversation as a way you can bring more value to your client by giving them a chance to look good by recommending someone as good as you (and not seeing it as a time to focus on your needs—this is a very important and empowering paradigm). Being given referrals should build relationships.
4. It sets a different tone. Try using an agenda at least for a period of time. I have never heard someone say they regretted using one. It will not transform your meetings, but many people say it sets a more professional tone. It may seem a bit stuffy to a few of you, but most people like dealing with organized professionals. No client fully respects and prefers paying someone who flies by the seat of his pants on a regular basis—even though you seem to think it is fun. It respects their time more and allows for a discussion on other priorities that may have changed since your last correspondence.
Your clients like to know what to expect and will appreciate it, even if it’s only subconscious. They will feel more comfortable. Remember: certainty is a fundamental human need.
5. It will help you confront your real fears behind asking for referrals and help you start asking more effectively.
A few tips about agendas:
1. Make them simple and very easy to duplicate OR delegate them to someone else. If you’re saying to yourself: “Matt, this doesn’t fit with my personality,” re-read the advantages, see if you really have these covered already and keep reading.
2. Give your client a copy of it, preferably one that’s exactly the same so it looks like you are both literally on the same page and that you’re not hiding anything.
Note: If you are still perfecting your referral conversation and need written reminders for yourself (and you think you need to put them on your version of the agenda), try to keep them as brief and simple as possible and remove them as soon as you remember.
3. Consider e-mailing or mailing your agenda out ahead of time. This looks very professional and organized and, most importantly, gives your client a chance to make sure you are both on the same page and doesn’t surprise you when he or she walks in the door with a topic you’re not prepared for.
4. With prospects, have a conversation at the start of your meeting about how that person heard about you. Regardless of what they say, it gives you a chance to say something like, “That’s unusual! Pretty much everyone I work with these days was recommended to me by someone else.”
Or “most of my business comes from people saying nice things about me to other people.” You are planting some seeds here. If most of your business comes from personal recommendations, that makes a statement to them about how well you run your business and that many others have felt strongly enough to put their integrity on the line to refer others to you.
5. Focus on the client. The wording and items in general on your agenda should focus on the client, not you.
6. Don’t use the “R” word. Put Value Discussion/Conversation/Check-in on your agenda. Do NOT use the word referrals on your agenda. This word is DEAD; it does not resonate positively with the general public anymore. It’s like the word “used”; used cars became pre-owned cars and more recently are being called pre-driven cars. Next they will be called pre-touched or pre-sat down in… You get the point.
Since you cannot have a referral conversation and ask for referrals unless you have earned them, first you need to verify that you have. The best way to do this is to have a conversation about what the biggest benefit/s have been to your client (see Step 2 in Chapter 6).
Therefore, call (what you want to become) your referral conversation something like “Value Discussion” (my favorite), “feedback” or perhaps “customer service update.” Some sales people I know have put on their agendas “Clients Helping Friends Program,” “Helping Others” or “Other Ways We Help People You Care About.” All of these can be effective provided you are comfortable with them.
I am not an advocate for calling it anything more obvious (such as “Introductions,” “Personal Recommendations” or anything tacky that more or less says “Help Me Grow My Business”). This is partly because today’s consumer is more aware of older school sales techniques and because they scream the “me, me, me” approach. It turns people off.
7. You’ll notice that the value discussion does not come last on the agenda. You don’t want to run out of time. Again, the healthiest mindset is that the discussion is not intended to benefit you (it will, but your client doesn’t care about that) but to make your client look good by recommending you. In other words, recommending you is a value-added service. For example, it’s like the time you recommended a friend to your chiropractor and she returned delighted because of how much better her back felt. How did you feel after that?
8. Item 7 on the sample agenda that follows is intended as the assumed close—that you expect them to do business with you. You can still reduce the prospect’s resistance by telling them; “If you think this looks like a good fit for you, then we’ll schedule our next appointment. If you don’t think this is best for you, we won’t; but hopefully you’ll at least have learned something beneficial. How does that sound?”
But you still have your expectation firmly in black and white on the agenda.
SAMPLE AGENDA FOR INITIAL MEETING
Name: Date:
How did you hear about me?
1. Tell me about you. Update your info. Your expectations.
2. (optional) Why me/ABC Company or About me
3. Your objectives for today’s meeting:
a)
b)
c)
4. Other ways I can help you: (list)
5. Value conversation/Feedback/Insights
6. Q&A
7. Schedule next appointment/annual review
Sample Agenda Script
“Before we get started, I’d just like to go over the agenda quickly. Oh, and do you still have ‘till 3pm? Great. Well first off, I want to make sure we have all your contact information up to date and I would like to know a little bit about you and find out what your expectations are of me. Then the primary reason for our meeting today is to take a look at your (ex.) investment goals and see if there are any better ways that suit your needs than what you are already doing. After that I’d like to quickly go over a few other ways I can help you, have a brief (what I call) ‘value discussion’ to make sure this was a good use of your time, answer any remaining questions you have, and then, if everything looks good to us, schedule your next appointment. How does that sound?”
DO IT! Make up a simple generic agenda that you can start using, print off 50 copies of it and see how it helps to set a calmer, more professional tone to your meetings.
Please forward this on.
Author: Matt Anderson, The Referral Authority, Author of Fearless Referrals
Copywright 2011.
