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Podcast: The key to unlocking referrals for financial advisors

Written by Suleman Din | Dec 7, 2022 2:30:00 PM

By taking one simple action, advisors can open themselves up to a wealth of referrals, says Marguerita Cheng, CEO of Blue Ocean Global Wealth.

Cheng spoke with Suzanne Siracuse, former InvestmentNews publisher who now regularly hosts industry thought leaders for her podcast, The Big Reveal.

Siracuse, who is also a member of the Action! Leaders Group learned how Cheng used her life experience to jumpstart her career as a planner, how she brings empathy into her financial planning practice, and what her advice is on getting professional development.

The following excerpts have been edited for clarity. Click below to hear the full interview.

 How do you grow your client base? What methods did you use or are you currently using in your practice that are successful for you?

Marguerita Cheng: "I learned that it's not enough to just ask for referrals – you need to make yourself preferable. That's being a trusted, helpful resource to people in your community. Your community could be friends or family or your existing clients. Just be there to answer questions and be that trusted resource…If someone sent me a check, I would send him a quick e-mail to confirm receipt of the check. These little things mean a lot and they really don't take that long. If I knew that someone's child graduated, I sent their child a present – and don't worry; this was totally compliant. I have a lot of clients that are professors, in academia or researchers, and they spend a lot of time on their feet. One client complained to me about how his feet hurt. I bought him three pairs of socks and gave them to him with a gift receipt, so he could exchange them if he didn't like them. He said that was the most thoughtful present because now he had happy feet. Pay attention to the little things; that's how you become preferable."

How do you communicate with your client base, and in what form is it?

Cheng: "The first thing I do when I onboard a client is ask them for their preferred method of contact. Do you prefer phone calls or e-mail? I also ask them how they would like to hear from me. If it's a couple, I will ask them if they both want to be included. I think it's important because I want to make sure that everyone is involved…The second thing is people know when to expect to hear from me. I tell clients you can e-mail me anything, but I've also coached them that if there's something secure, meaning an account number, a Social Security Number, an e-mail address, I want them to use our portal or secure e-mail. I have clients who are 80 years old that know how to do it. When you coach them and explain, [your clients] are not going to complain. I also send out a newsletter every week. I don't know how many people read the newsletter, but I do know that sometimes people hit reply all and write, ‘We need to meet.’ So, find out what works best for your clients. You can also customize to their preferred method. There are filters and fields within your CRM to make your life easier so you don't have to remember everything."

What advice do you have for other independent advisers on running their practices?

Cheng: "Make sure you take an active role in our profession. Join professional associations. Even if you are just a member and you participate in member forums, you’ll find out what people are saying. This can be incredibly helpful. Join the association study groups. It doesn't necessarily mean cramming for a test; it could also mean discussing a topic, whether technology or practice management. Maybe it's because I have the abundance mentality, but I don't view other financial advisors as competitors. They're your collaborators. There's plenty for us all to be successful. Expand your network and bring others along."