March 13, 2023

Types of Referrals

In today's episode of "The Confident Advisor Practice Podcast," a podcast from the Horizon Advisor Network, hosts Bill Bush and Chad Soileau talk about referrals, the golden egg of the business substitute.

Episode Highlights

• 01:20: Bill and Chad are going to talk about the three typical types of referrals that you may want to concentrate on and then obviously use all at the same time.

• 01:40: First type of referral is passive referral, meaning somebody else is referring to.

• 02:47: The next type of referral in called the reactive referral. It's typically that someone you know that knows what you do and you have told them, hey, look, if you ever meet someone who XYZ, make sure you tell them.

• 04:39: The third of referral is called the manufactured referral.

• 06:52: If you get a manufactured referral, you are probably 75% of the way there. So your probability of closing that business or gaining a new client goes up.

• 07:38: To be successful, you have to have a few things going on at once and be diversified in referrals.

• 08:04: Typically, most people don't just want one type of referral, then it hopefully adds to some sort of consistency as well.

• 10:11: No matter what type of referral, when you take a look at these in totality, it's leveraging those existing relationships.

• 10.40: Bill and Chad shares how increasing your credibility can help you to gain more referrals.

• 11:45: The manufacturer referral is the one that's really much more guided, much more specific.

• 11:50: The referral source is essentially set you up to make the connection and to meet that person, and really, that's where your highest degree of probability of having success is going.

3 Key Points

1. Bill and Chad explain if you have all three kinds of referrals working at the same time, that's going to be very beneficial.

2. Bill and Chad talk about the importance of leveraging existing relationships, if you're not doing that, you lose out on a lot.

3. It's a snowball effect, if someone whom someone else knows, then that person can spread the message for you as well.

Tweetable Quotes

• "Passive referrals have probably the least bit of frequency of the time that it does happen, but at the end of the day still it's a referral and it's still good." - Chad

• "Manufactured referrals is where you are going to give your clients COI's team members whatever it may be, kind of a training on how to recognize that if they are in a conversation and they hear particular things where you have done some training with them of maybe see how to again, kind of really manufacture the referral itself in the sense of if you hear this, this is how you should say XYZ to maybe develop that referral." – Chad

• "As an advisor, our ears kind of perk up to certain things. You know, if I hear anybody that's talking about. Changing jobs, retiring inheritance, having you know all these different life events that happen. Typically, my ears are kind of wired for it." - Chad

• "If one particular bucket of referral source isn't working well on one type, then you might have the other one or two that are generating something." - Bill

Resources Mentioned:

The Confident Advisor Practice Podcast

Horizon Advisor Network Website

Horizon Advisor LinkedIn

Bill Bush