In the world of professional services, particularly for financial advisors, the way we grow our businesses is constantly evolving. Yet, many of us cling to outdated methods, not because they’re effective, but because they’re familiar.
This tendency, known as the sunk cost effect, can hinder our progress and prevent us from adopting more efficient strategies, especially in the post-pandemic era.
The Pitfalls of Traditional Selling
Traditional selling methods, like cold calling, have long been the go-to strategy for building a client base. However, these approaches are often ineffective and unsustainable in the long run. Many financial advisors who started their careers with cold calling admit that they neither enjoyed the process nor continued to use it as their primary growth strategy.
The industry’s high turnover rate, particularly among new advisors and those at the three-year mark, is a testament to the ineffectiveness of these outdated methods. Many professionals struggle to transition from these aggressive tactics to a more sustainable, referral-based business model.
The Power of Referrals and Social Selling
What truly works, both offline and online, is being social. People need to know you, trust you, and value your expertise before they’re willing to refer you to others. Thanks to social media platforms, we now have the ability to network at scale, but the key lies in our mindset.
Building a Referral-Based Business
To harness the power of referrals and social selling, consider the following strategies:
1. Build a Valuable Network: Focus on growing your network, not as a pool of prospects, but as a community of people you can help and who can help you. On platforms like LinkedIn, consistently adding connections can significantly expand your reach over time. Emphasize building relationships with other professionals that provide services for your ideal clients.
The Future of Selling: Social Selling
Social selling represents a paradigm shift where clients are drawn to you rather than being pursued. This approach is sustainable throughout your career and scales with your business growth. It builds upon the foundation of referrals that likely contributed to your offline success and translates it into a strong online presence.
The challenge lies in finding the right guide to help you and your organization transition from traditional selling methods to a referral-based, social selling approach. This transition requires a strategic mindset shift, but it’s one that can ensure confidence and profitability well into the future.
By focusing on building genuine relationships, providing value, and leveraging the power of referrals through social platforms, professional service providers can create a sustainable and enjoyable path to business growth. It’s time to let go of outdated methods and embrace the future of selling – one that’s built on trust, value, and genuine connections.
Ironically, the oldest way to market (referrals), is still the best way to market right now.
All the best,
Mike
