As a financial advisor managing a growing team, you’re likely focused on scaling your practice this year and setting ambitious goals. One of the most effective ways to do so is through referrals, but asking for them can feel daunting for many advisors. Whether you’re leveraging email campaigns, sending clients home with magnets to give out, or LinkedIn outreach, plenty of strategies are at your disposal to generate quality leads. It’s not just about sending a message, it’s about understanding that as a fiduciary, it’s your duty to introduce services that can truly benefit others. Clients hear about strategies like converting a 401k to a Roth or other best practices all the time, but making those decisions should be done with the guidance of a trusted professional. Financial advisors who scale successfully tend to be masters at turning their clients into referral engines. Yet, according to a recent study released by Capital Group only about a quarter of advisors feel confident in their ability to attract new clients. Are you part of that 25%, or will 2025 be the year you transform how you approach lead generation?
Tip #1: Build Strong Client Relationships
Take care to deliver a winning client experience and your reputation will precede you. Prioritize regular, open and personalized communication. Lead with empathy and understanding. Provide a sounding board for your clients when they share their goals, concerns, and frustrations.
Tip #2: Ask Directly and Strategically
Context matters when making the ask. The best time to approach them is when everything is going well and they’ve had a recent win. Be specific about your request and frame it in a way that’s gracious yet clear.
Example: “I’ve really enjoyed helping you with your financial goals and I think I could be an asset to your friends and family who value the same things. Would you be open to referring them to me?”
Tip #3: Leverage Technology
Asking for referrals is personal and should be done in person ideally — and with discretion. But that doesn’t mean you can’t get some help from technology to manage the process. You might invest in a customer relationship management (CRM) system to track referrals and outcomes.
Make a point to share thought leadership posts on sites like LinkedIn to position yourself as an expert. Engage in discussions there to further build your credibility and exposure.
If you haven’t already, start an email marketing program. Send personalized campaigns to your existing clients, reminding them you’re in their corner and would like to help others they care about.
Tip #4: Create a Referral Program
A referral program can be one way to fast-track growth. If this interests you, be sure to set clear guidelines and incentives. Look to a referral tracking system to gauge the effectiveness of the program or else you risk wasting time and resources going after the wrong sources. For the sake of ethics, it’s a good idea to offer modest incentives, like a restaurant gift card, to both the referring client and the new client.
Think bigger in 2025. With goals in place, tools like PreciseFP can help shave off 3-4 hours from each financial plan, onboard clients faster, qualify leads, and even include lead generation as part of your subscription. Chat with us to learn how a referral engagement can be sent to all your clients, allowing them to quickly add a name and email of a friend who might be interested — jumpstarting your referral process. Plus, get started with a free trial today!
