A Guide to Earning Referrals

[0b1kanobee]

jd - spot on.

At the onset of my insurance career I decided I didn't want to be "that guy" either - hitting up friends and family, being "that guy" at any social event who finds a way to pass our cards, etc...

And this is your problem and 95% of other agents problems out there with asking for referrals. You have stereotyped the agent who asks for referrals as "that guy" without having been taught there are techniques which work effectively without having to be "that guy" and quite frankly I'm glad because that's more business for everyone else.

No doubt about it as I know JD is a top producer and I know you have been in the past and through talking with you I have no doubt you could sell a cherry Popsicle to a woman in a white gown on a warm day.

I don't want to come across as if I ask for referrals all the time either. I should but I don't. Shame on me I guess.

 

[Crabcake Johnny]

Actually, I do quite well with referrals by providing quality service and plans to my clients. And yes, I absolutely ask for referrals....later - after I've already shown them the level of service I provide. Much more effective method.

 

[Justin Bilyj]

Well thats a step in the right direction John, for a second there I thought you were sounding like the other agents that blast door hangers, or going b2b, or cold calling saying it doesn't work....

As a side note, since this is about referrals, I will post some articles I found on Producer's Web INCASE an agent out there wants to learn how to do this effectively..

http://www.producersweb.com/r/pwebmc/d/contentFocus/?pcID=e6ca5f3e74aa370503dea8fc645551f6
There is much confusion as to when and how often you should ask for a referral. Some presume that you ask once, either at the beginning of the sale or the conclusion of the transaction. In reality, you should ask for referrals several times. By asking more than once, you create a cumulative effect and greater results.

http://www.producersweb.com/r/pwebmc/d/contentFocus/?pcID=e6ca5f3e74aa370503dea8fc645551f6
If you've been reading my column over the last three years, you know that I'm a huge advocate for asking for referrals. While I don't teach an aggressive approach, I do advocate finding ways to be appropriately proactive. Sometimes it's appropriate to promote the referral process by planting referral seeds. One of my favorites, with which many reps are having great success is, "Don't keep me a secret." Sometimes it's appropriate to come right out and ask for referrals -- once you know that your client has recognized the value you bring to the relationship.

 

[rousemark]

Unless you are using direct mail response leads, the greatest sources of prospects are people you know and people they know. The Monumental program addresses gaining access to "people they know." AGLA subscribes and spends a great deal of money promoting Bill Cate's Unlimited Referrals to their agents.

For all the negative comments, one fact is being overlooked. No matter how you feel personally, it works. You are almost twice as likely to be granted an interview by a referral than you are by someone contacted through a cold call. Also, an interview with a referral is much more likely to result in a sale.

Plus, since the profit margin is almost 100% on a referral sale because, unlike direct mail the lead cost virtually nothing, it only makes sense to work referrals if the agent has the intestinal fortitude.
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Actually, I do quite well with referrals by providing quality service and plans to my clients. And yes, I absolutely ask for referrals....later - after I've already shown them the level of service I provide. Much more effective method.

Then you do work referrals. There is a lot of debate as to how or when they should be requested. I like your method. I have never been one to ask after taking an application.. I tend to want to get teh app, the money and leave. Worked with one agent that never knew when to shut up and on one more than one occasion had people change their m ind before we could get out of the house.

Personally, since I deliver policies F2F in order to cement the sale, I prefer to ask for referrals after completing the delivery. Things seem more relaxed at that time when compared to the completion of the app and you have established a little more trust and confidence. The client sees that you aren't just going to abandon them after making a sale. JMO.

 

[Crabcake Johnny]

I want people to imagine just how incredibally inappropriate it is to ask for referrals before the sale:

"Hey, here to buy a car, can you show me around?"

"Sure, but first, let's talk about people you know who might be interested in buying a car...."

 

[tlmarketing]

You have to build the trust, deliver above and beyond, and not come across as a stereotypical sales person...when you do that for your clients, your clients become your best advocate and refer people to you.

 

[rousemark]

I want people to imagine just how incredibally inappropriate it is to ask for referrals before the sale:

"Hey, here to buy a car, can you show me around?"

"Sure, but first, let's talk about people you know who might be interested in buying a car...."

Well, I have received referrals that resulted in a sale from people I did not close..Went something like this, "Well, I'm not interested but you should call.... " Don't know if they really interested in helping their friend or if it was their way of saying, "get out of my office".

 

[Larry Tew]

When agents say they don't want to be "that guy" or similar comments, it reminds me of what Bill Grimes calls "Role Aversion". Some of you sound like you have to hold your nose or reach for an air sickness bag every time you think about your chosen career path.

Granted, FE is one thing, estate planning another, and all points between the two have certain ways that work better than others. But the bottom line is that referrals / recommendations / endorsements are the least expensive and most productive source of new clients. Period.

I'm taking bets as to who will be the first to trot out a clip of Ned Ryerson.

 

[Guest]

Dude, I didn't even realize that was you on the post! How have you been?

That would be so funny if you said hi to Breuer for me, just saw him in New York City last month, might be doing some cool gigs soon.

Whenever I see something like this my first thought is "would it work on me?"

If you called me during dinner, I would either not even answer the phone, or on the off chance that I did, I would blow you off because I'm eating dinner, even if my Mom told you to call me (although she knows better than to give my number out).

Now maybe the 6:30 dinner example was used to hook the reader because if this "test" was actually done at dinnertime, there's no way the numbers are accurate. In fact, don't you feel that the numbers are suspect anyway?

Of 5,640 they all became prospects? Not even one said they're not interested?

5,640 qualified suspects.
2,240 turned into prospects cold calling.
3,400 converted into prospects by referrals.

Sounds unlikely.

****Everyone knows referrals are the best way to gain a customer, no lead cost, no competition, etc so that aside I'll ask this, even after much resistance here on the post, you go on to defend this system, have you tried it? Has it worked for you? Meaning this one specifically?

Yes, there are great referral techniques you can put in place, in books and otherwise, none of them say to intrude on the referrals.



Have I used this script, no, but I like the study and how it illustrates the importance of generating referrals. I have asked for referrals and written business off of it. I agree with Dave, who cares what they think of you if your genuinely adding value and being nice about it. Its one thing to call at inopportune times, and to be rude, its altogether different using a nice way of asking and adding value to the mix.
There's a gentleman that I am changing his AARP term out with a wl policy, you better believe I will ask him if there is anyone he knows that is facing the same situation, which is finding out that his policy was actually a term and not a whole life like he wanted originally. I find that is adding tremendous value.

As a side note, Jim Breur is coming to the comedy club I bartend at this weekend. Should I tell him you said hi Rob?