Relying on Referrals is a Mistake

New advisors are coming into the market every day. Even though they are new, they have the same tools, the same designations, and offer the same services as you... and in the eyes of your prospects, are on par with your level of experience and expertise. Those advisors could be automated “robos” or humans located anywhere in the world.

Your prospects have an abundance of options they never used to have, and they don’t have to do much to explore them. A quick search on LinkedIn will bring up hundreds of financial advisors to choose from in a split second.

During a sales conversation with a new prospect, assume you’re merely on a list of advisors they’re contacting.

This is a very different scenario from how you got to where you are in your business, before the aspects of the financial advisory profession became commoditized.

As few as 10 years ago, extensive experience, core domain knowledge, and an inner circle of contacts were the main barriers of entry into the market. Once you overcame them, you were in a strong and dependable position.

But technology and the internet have removed those barriers forever, and that once-strong and dependable position is no longer secure and predictable.

Your knowledge and credibility are essential. But in a low-barrier-to-entry environment, there are many other advisors who can claim to have them also.

And since your prospects can’t experience your knowledge and credibility until after they’ve become your client, relying on it in your sales process or as the basis for referrals can no longer produce a predictable flow of inbound high-net-worth opportunities.

There are too many other advisors they can choose from, doing exactly the same thing as you.

If you’re still generating a comfortable flow of clients from referrals and you’re wondering what all the fuss is about, recognize that the strategy that got you to the position you’re in now will not keep you there.

If you’re seeing fewer referrals this year than last, then re-think how you’re positioned in your market.

Are you positioned based on your knowledge and credibility, which puts you alongside everyone else and forces you to prove and sell yourself?

Or are you positioned as a trusted authority, so that you’re perceived as truly differentiated in the minds of your prospects, before they have a sales conversation with you?

That is the question you need to answer as soon as possible.

Ari Galper is the world’s number one authority on trust-based selling and is the most sought-after high-net worth/lead generation expert for financial advisors. His newest book, “Trusted Authority” has become an instant best-seller among financial advisors worldwide – you can get a Free copy of Ari’s book here and, when you click the “YES” button in the order form, you’ll also receive a complimentary “plug up the holes” lead generation consultation. Ari has been featured in CEO Magazine, Forbes, INC Magazine and the Australian Financial Review. He is considered a contrarian in the financial services industry and in his book, everything you learned about selling will be turned upside down. No more chasing, no pressure, no closing.

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