The solution to "If I think of someone, I'll let you know"
Published in InvestmentNews on July 10, 2017
In most professions, like medicine or law, a referral typically comes when someone actively seeks professional help. Someone breaks a leg playing soccer over the weekend, and starts actively asking around for a referral to an orthopedic surgeon. A woman needs a divorce, and she starts frantically asking around for the name of a matrimonial lawyer who can help. The task at hand typically cannot be solved alone, cannot be postponed or ignored, and is time-sensitive, resulting in an active search for someone who can help.
In those situations, the person seeking the expert is quite vulnerable, turning to those he or she trusts who have faced a similar predicament, or those who work within the industry. The referrer sees pain (a soccer player who cannot walk straight, or the divorce candidate who is hysterically grieving) and knows exactly what kind of a specialist to refer.
Not only is the referral straightforward, but the referrer also feels altruistic by helping their friend or loved one resolve a problem.
The process is not nearly as straightforward in the wealth management industry. Since few people actively look for a new financial adviser, how can someone see with their own eyes when their friend needs financial advice and doesn't already have someone with whom they are happy? What would be the clear signs that someone would appreciate a second opinion on their portfolio? How can they know who is a good fit for a financial adviser's platform?
Read the rest here