Why are personal introductions so effective?
Oechsli’s research revealed that 41% of affluent investors first discovered their financial advisor by being introduced by a friend, family member, or colleague.* When prospects are introduced to you by someone they trust, they’re more likely to grant you a face-to-face meeting.
Personal introductions – The wrong way
Many advisors think of referrals and introductions as one and the same, but to the affluent, they’re quite different. How? The traditional referral request of, “Who do you know who I could help?” is a turnoff for the affluent. Seventy-five percent of affluent clients feel uncomfortable when asked for a referral. Other less personal approaches such as cold calls, walk-ins, and large seminars are even less effective for getting introductions.*
Personal introductions – Laying the groundwork
To get started with personal introductions, start developing both a social and a business relationship with your affluent clients. Seventy-seven percent of clients with both a personal and business relationship with you will introduce you to others. That percentage drops to 57% if you only have a business relationship with them.*