7 ways for advisors and brokers to bring up business with a social connection

It’s not that difficult to bring up business with someone you know socially, if you can find an approach that feels comfortable.

(Photo: Shutterstock)

“I would like to go over your personal finances someday.” That was a line that didn’t work for a financial advisor active in the community. Because he used it so often, it became a story friends told each other when the advisor’s name came up. The question highlights an obvious problem. You make friends with people who have the potential to become great clients. How do you initiate a conversation about business?

Bear in mind the other person already knows what you do for a living. The fact you haven’t pounced on them for business has earned you points. They know when they are being cultivated for business and appreciate your interest in sincere.They might be open to doing business but are going to wait until you ask.

1. The professional conversation.  This is a very formal approach.  You meet face to face at a time when you each don’t have pressures on your time.  You recap how you know one another.  This is followed with “You know where I work and what I do.”  You mention what you know about their profession or job occupation.  “I would like to talk with you in my professional capacity, to determine if there’s an opportunity to do business with your organization. (or yourself). Would you be open to having that conversation?

Why:  It doesn’t get any politer.  You have given them the opportunity to opt out.

2. Wearing different hats.  This is similar to the first approach, yet it isn’t about some conversation at some unspecified time in the future.  We are having this conversation today. Right now!  It’s the same scenario.  You are together with your friend.  Everyone is related.  There are no time pressures.  You start by saying: “For the next five minutes I’m taking off my ‘friend’ hat and putting on my ‘business’ hat.”  You have the business conversation, keeping an eye on the time.  You wrap up by saying “My five minutes is up.  I’m taking off my business hat and putting my friend hat back on.”

Why:  The conversation separates two relationships, personal and business.  There’s no need for them to have a way to opt out, because you set the stage.  If they want to continue the business conversation, they can say: “Put your business hat back on.  I have some questions.”  It’s unlikely they would feel offended.

3. Who’s the right person to approach?  You sell to businesses, not individuals.  You want to learn who handles benefit plans in the company.  They mention a name.  You ask for a personal introduction.  If they are a “one-man band” they might say: “It’s me.  I do everything.”  You now have your contact person.

Why: Business owners and professionals often see their business and personal lives as totally separate.  They can be comfortable talking about one, yet not the other.  Different rules apply

4. The third-party approach.  You sell to individuals.  Approaching a friend might make them uncomfortable.  Instead, bring up business and say you assume they work with someone already.  They are probably very happy with the relationship.  Now, mention that they may know someone who isn’t in as good a position.  It would be good for the two of you to talk about “What it is I do.”  The rationale is if you come across someone with that problem, they will know how you might be able to help them.

Why:  It’s an opportunity to explain, one to one, what you do, without the uncomfortable feeling you are selling directly to them.  You could align your explanation to their needs anyway.

5. Who do you know?  It’s a classic way of asking for referrals.  Who has a specific problem you are in a position to help solve? If you do this over time using different examples, people gradually get a better idea how you help people.

Why:  The more specific the problem, the easier for your friend or client to think of specific names.

6. Success stories. It’s the “dripping” strategy: When they ask “How’s business?” you hear “How have you helped someone today?”  You share short, anonymous success stories.  Gradually they learn the depth of your offerings and how you help people.

Why:  It’s less awkward because it isn’t a direct approach.

7. Treat them as a professional investor.  This person told you they work with someone else.  You respect that relationship.  You ask when they review that relationship and if they are open to presentations about other alternatives at that time.

Why:  You want to compete for the business.  They review vendor relationships periodically.  They invite in other providers as part of their due diligence.  You are speaking the same language.

It’s not that difficult to bring up business with someone you know socially.  Find an approach that feels comfortable.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon.

READ MORE: