Why Do We Get Such Poor Quality Referrals?

Let me share a very interesting case story from one of my participants.

Now, he’s been in this wealth management business, investment management.

He manages portfolios for high net worth individuals.

And he’s got some amazing, amazing referral partners, who got stature, who got style, who got the ability to go and meet anybody and talk to them.

What does he want? Why is it not working?

He’s been kind of trying to figure out how can I make this whole referral process effective?

We started to deconstruct that process and as we started to deconstruct the process, the first thing we found is that his ace referral partners walk into networking events and meet people and give out their cards, business cards and collect a lot of business cards.
And in the end, they bring a bunch of business cards and handover, that, hey, these other people that you got to go and meet.

And then as he starts working with them, nothing moves forward because there was no connection, there was no qualification, there was no identification of what exactly does that person require and is it what you offer.

That connection when it is missing, it’s a total waste of time.

It’s almost as good as saying that, look, I took a telephone directory and I broke it into 50 parts and every week I’m feeding one part of that to my friend and tell him, look, these are the referrals, you have all the information that you need, their names, their telephone numbers, their address, go for it and make it happen.
Nothing’s going to happen.

And there was a strange realization that happened for this participant and what he really got is that all this while he was blaming them, that what kind of referrals you’re giving to me, nothing is working, these cards are it’s like cold calling, and the realization that happened for him is that the fault lay with him, that he had not bothered to create a referral process.

He had not bothered to be able to train them in a very simple way inside of whatever is their attention span and capability of absorbing and he had not bothered to help them qualify, identify and create a referral that would make a meaningful first meeting happen.

Now he started to work on it and he’s thinking of how can I simplify it so that these referral partners who are themselves very high networth individuals, that they’re not open to sit with me, to train them and give them a manual, they’re not my employees, they’re friends and well-wishers.

I need to really simplify it in such a way that they can spot the right person and then connect that person to my referral process and then I can engage with them and then take that conversation forward in a very meaningful way.

Video reference number: 022025