Blog Post #13 SOME REFERRAL POINTS ARE BETTER THAN OTHERS

THE REFERRAL GENERATOR

JB:  Talk to us about this idea of a referral generator.  That’s a key element to the entire Core7 System. 

 MM:  Yeah.  The Core7 System, if it was based on one thing that would be it.  The Referral Generator is a question that creates an opportunity to refer the proper professional on almost every interaction with the client.

 Basically, the Referral Generator goes like this, “How is your relationship with your, what ever professional you are going to refer, who specializes in, what ever that client’s need is.” 

 So let me give you an example of how that works.  Let’s say the client is concerned about saving for retirement.  The Referral Generator would go like this “How is your relationship with your Financial Advisor who specializes in retirement planning?”    

 JB:  That’s fantastic. It will generate a definite answer every single time.  So this could be anything.  If the client wants to buy real estate for investment purposes, it would be “How is your relationship with your Realtor who specializes in investment properties”, right? 

 MM:  Absolutely.  Just fill in the blanks.  The bottom line is there are specific referral points for each professional in the group triggered by this question.  The best part is that it is all for the benefit of the client. 

 JB:  Right, so all this is in the name of or the idea of putting this protective wall around the client. So you bring in the Financial Advisor.  You bring in the Estate Planning Attorney. You bring in a CPA. 

 There is a specific methodology so that the right people are referring at the right time with the right scripting.  It seems like anyone can execute this at any time, right?

SOME REFERRAL POINTS ARE BETTER THAN OTHERS

 MM:  Yeah.  I’d say that was accurate.  Any of the Core7 professionals that have strong communication skills could potentially refer all their Core7 partners.  No one is obviously going to complain when that happens.  However, there are certain referral opportunities that are better than others, so a focus is put on referring the right partners at the right time. 

 There are two reasons for this.  At certain points in the business cycle, there is a better chance for a successful referral, and these referrals make more sense in that context.  Let me give you an example of that.  It’s easier to purchase a home after you get comfortable with the mortgage financing.  Just like it’s easier to put a will in place after a client has spoken with a Financial Advisor who evaluated their entire life plan and goals with their family. 

 The second reason is that making the referral is easier at these points.  What I mean by this is that the client is more open and receptive and more likely to say yes.  Let me give you an example of this.  A client is going to be more receptive to speaking with a Financial Advisor after having a conversation with a Mortgage Originator about cash flow because they are going through the process of buying a home at that time. They view it as just more important and something they need to address. 

 You see Justin, if the referral is forced, at the wrong time in the process or given by the wrong professional, it can make it less likely for your client to accept the referral because they don’t clearly see the need at that time.

 JB:  Yeah, I get what you are saying.  The referrals have to make sense to the client in the timing of their lives. If you try to sell them Life Insurance and they are 22 years old, or whatever the case is, it might not make sense at that time to them.  So, there has to be a sequential order.  

 MM:  When a client is having a child they really start thinking about Life Insurance and college planning and things like that.  It’s more on their minds, so that’s why the timing and predictability of the referrals is very critical.