Referal Program for Financial Advisors?

PotentialFarmer

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Hi folks.

Was curious what everyone has been doing for any programs they have with their network of referral sources. I'm meeting with an independent financial advising firm's two owning partners on Wed for lunch and I'm just not sure how I could work something out that would be mutually beneficial. My issue is I'm a new startup so I don't have a huge book yet for cross referrals. And I don't think a 10 dollar per referral is going to get them pumped up, even a 100 dollar per referral probably wont either.

Any ideas?
 
Hi folks.

Was curious what everyone has been doing for any programs they have with their network of referral sources. I'm meeting with an independent financial advising firm's two owning partners on Wed for lunch and I'm just not sure how I could work something out that would be mutually beneficial. My issue is I'm a new startup so I don't have a huge book yet for cross referrals. And I don't think a 10 dollar per referral is going to get them pumped up, even a 100 dollar per referral probably wont either.

Any ideas?

I think its going to be tough no matter what you do...I would have a hard time recommending a new insurance agent to my clients. I think your best bet is not to hide the fact that your new without a large customer base....I would tell them I'm hungry have a small agency and will hand hold every refferal you would be willing to send my way.
 
I think its going to be tough no matter what you do...I would have a hard time recommending a new insurance agent to my clients. I think your best bet is not to hide the fact that your new without a large customer base....I would tell them I'm hungry have a small agency and will hand hold every refferal you would be willing to send my way.

Well I never said I was a new agent, just a somewhat new Principal Owner. I was with farmers for close to 2 years working as a producer working under the main Farmers Agent and gained some solid knowledge.

However to be honest I think your suggestion is potentially my best bet and really appreciate it. That's probably the only card I hold in my deck, small, hungry and with the ability to handhold any client they send my way.
 
If you try to say anything else.. they will see through it. Cultivating relationships with CFP's and CPA's takes a long time... they do not just have one lunch with you and open up their book of business. You need to stay in touch (even if you are not getting any business) and then jump all over anything they send (big or small). After a few test cases to build confidence and test your ability... they will start sending some of their top clients. They will not sent those top tier prospects until you have earned their trust and that can take years.

That being said... it is worth it The estate planning cases that a good CFP or CPA can bring you into will make the latter part of your career very fun.
 
GOOD LUCK! I am surrounded by 50 financial advisors. Yes, there is a gold mine here, but it's surrounded by a mine field. First off, when they (advisors) can get $10K up front for a life insurance policy, you can bet they won't give a hoot about your $100 policy commission. They are all afraid that the insurance will somehow get fouled up, and they will lose that client. Believe you me, the client is all that the advisor has. It will take you years to get trusted with their top clients. If you are extremely lucky, you will get their bottoom 5 clients. Best advise, ask if you can shop their personal insurance. If you can show them the gaps in coverage, and even a cost savings, it will open some of the doors for you. This is seriously going to be a chess game for you. And also take the next 20 years. And also the bright side is that their is alot of turnover in these types of businesses. That means that once the advisor leaves, the client will stay yours! If you can get with a financial planner- one who evaluates a clients wealth and risks. This position is usually more of a "switzerland" mentallity. They are not interested in selling products (life, disability, LTC, etc.) They are only there to advise of red flags, and gaps. This is where the P&C truly shines. That's the one that will listen! Plus it's a value added service to the client. It should help with the financial firms retention if you do a good job. Best of luck to you!
 
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