A financial advisor’s career is only as strong as their referral network. Referrals of clients and partners can lead to new customers and growth opportunities, and people are 400% more likely to become clients when their friend refers them to an advisor.
But a strong network doesn’t grow on its own. It takes dedication and effort to create and nurture a strong network. In this blog, we’ll look at eight ways to build your network as a financial advisor.
Provide Exceptional Service
The foundation of your network is your reputation for providing high-quality service. Clients need to know you provide consistent, reliable service before they will refer you to family and friends. Cutting corners, failing to develop personal relationships, or not communicating clearly are reasons clients may steer away.
Ask for Referrals
To build your network, share it! Let your existing clients know you’re always looking for referrals. Clients may want to refer you but think you’re at capacity or aren’t looking for new clients. Only 11% of financial advisors ask for referrals, so it might not be on your clients’ minds, even if they have a great prospect. Make it easy for clients to refer you, such as with pass-along referral cards or an up-to-date website URL.
Create a Referral Program
It’s human nature to ask: what’s in it for me? People are naturally more inclined to participate or refer an advisor if they get some benefit. A referral program makes it more official than simply asking for referrals — it creates processes and standardized rewards for every referral. You can create the program to meet your firm’s needs, but consider a reward like a gift card, service discount, or entry into a larger drawing for every referral that clients send your way. The incentives could increase once the referral signs with your firm or if an existing client refers multiple people.
Showcase Your Expertise
Your brand is directly connected to your network. As you establish yourself as an industry leader, people will engage with and share your content, which can lead to more referrals. Create a newsletter or blog to regularly discuss trends, financial opportunities, and industry news — all tailored to the needs of your target clientele. Make that newsletter shareable by posting it online or on social media. In each issue, promote a free consultation to drive business.
Use Social Media to Your Advantage
Social media is one of the best tools available to advisors, but it’s often overlooked. Social media marketing is not only free, but it’s also effective and puts you where your potential clients already are. Use social media to advertise your products, build connections, and share relatable content. Social media allows you to showcase your skills and expertise alongside your distinctive voice and personality, which is especially useful in connecting with younger clients personally.
Maintain Regular Contact with Clients and Prospects
A strong network requires nurturing. You can’t simply add someone’s contact info to your spreadsheet and think it will automatically lead to new business. Stay in contact with past and current clients, as well as prospects. The key is to build relationships instead of just counting followers. Keep it light, easy, and personal by checking in to see how they’re doing, sharing seasonal messages, or following up after a life change. The goal is to build positive affinity. They might not be ready to sign or refer your services now, but maintaining that contact keeps you in mind when they have a financial need.
Use Digital Tools
Building a network and keeping everything organized can seem overwhelming, but you aren’t left empty-handed. Digital tools streamline data entry and can help you store the contact info of people in your network and track their referrals and pipeline progress. Streamline contact with automated nurture emails to keep prospects moving through the sales pipeline. Customer Relationship Management (CRM) tracking and lead scoring track client interactions and can help you manage and analyze your network to maximize potential sales and referrals.
Be Patient
Building a network doesn’t happen overnight. It requires patience and nurturing. Don’t get discouraged if the referrals don’t instantly start pouring in. With consistent effort, you can build a strong network that pays off with loyal clients, strong referrals, and a robust pipeline of potential clients.
Building a strong network should be your priority as a financial advisor, not an afterthought. Spending time establishing your brand and asking for and nurturing referrals can pay off in the long run. PreciseFP makes it easy to automate data-gathering and stay in contact with your network. Click here to learn more and start a free trial.
