A FINAL REASON TO ‘GUIDE’ FOR COMMERCIAL LINES REFERRALS
by Gil Simonds
In the previous article, I promised to provide one last reason to “guide” for referrals that goes beyond what we’ve already covered:
- a better chance of getting in the door;
- increased credibility with the decision-maker;
- a higher probability of making the sale; and
- far fewer “throw-aways” due to the size, class, or quality of the account.
When you get a referral from a client or third party that doesn’t fit the profile you were looking for, what usually happens? If you’re like many of the producers I work with, you’re reluctant to send this referred prospect to someone else. The reason: you believe that you’ll damage your relationship with the referral source if you don’t work on the referral.
So, what do you do? Do you work on those too? A compromise solution is to work this (undesirable) prospect, thank the source, then communicate to the source and re-educate them so you get much closer to your ideal prospect the next time. However, the better producers I see know how to cut this undesired prospect loose without alienating anyone, or feeling obligated to work on it. However, they will still re-educate the source (guide)
In summary, always show appreciation and gratitude for the gesture, while continuing to educate your guide about the type of referral that you’re seeking. If you can accomplish that without having to compromise by working on this not-quite-right prospect, you’re better off and more secure in the relationship with your source.
Building a secure and confident relationship with your referral source makes it easier to ask. I’m surprised to see how many producers are so insecure in these relationships even with long-term clients that they hesitate to ask for referrals.
So, take a close look at your relationships with your sources for referred prospects. Are you asking? If so, that’s good. Are you guiding? If so, that’s even better. However, if you’re willing to “help” the referral prospect who doesn’t fit by sending them to someone else and thanking your source, you’re going to succeed in developing a quality book of business. Every compromise you make potentially de-values your book, and possibly, you too, in the process.
The next article will expand on how this happens and how to build the value of your book.
Gil Simonds, CPCU, is president of Total Management Resources (Atlanta, GA) an agency sales and management consulting firm. You can contact him at (404) 250-9007, e-mail [email protected], or visit www.totalmanagementresources.com.