Two MFDs, Mukund Seshadri and Pankaj Ladha, share their insights on how to generate referrals and grow your practice. They share some tips for obtaining referrals and maintaining client relationships.

MFD Mukund Seshadri

In conversation with Cafemutual, Mukund Seshadri a Mumbai based MFD, shares some key strategies to help you understand the power of referrals and systematically grow your client base.

Personal Experience and Trust: The key factor for referrals lies in personal experience and trust. When clients have a positive experience working with you, they are more likely to refer friends, family members or colleagues. Building strong relationships based on trust should always be top priority.

Seamless, Unbiased and Ethical Service: Clients appreciate professionals who offer unbiased advice and adhere to strict ethical standards. Always put your clients' interests first, even if it means recommending products or strategies that may not bring you the highest commission. Over time, this integrity will pay off with more referrals.

Systematic Approach: An MFD should have a systematic approach and should always stay focused. Developing a clear onboarding process, regular communication and continuously monitoring clients' financial goals and needs can be helpful for an MFD to get new referrals.

Growing Goodwill: As you consistently provide good service and build a reputation for trustworthiness, your goodwill naturally grows. As the goodwill grows, an MFD can get referrals without even making any approach to clients.

MFD Pankaj Ladha

Success isn't solely measured by portfolio performance but also by the relationships you build with your clients. One powerful way to fuel your growth as an advisor is through referrals. MFD Pankaj Ladha shares his secret of getting referrals through existing clients.

Regular Portfolio Review: As a dedicated financial advisor, you understand the importance of keeping your clients on the path to their financial goals. Pankaj says that reviewing the clients’ portfolios twice a year helps him understand whether the portfolio is moving toward its goal.

It's about ensuring your clients are making steady progress towards their objectives. Once you  establish a good rapport with clients, you shouldn’t shy away from asking for referrals.

Adapting to Evolving Goals: Life doesn't stand still, and neither should your client's financial plans. You must take the initiative to ask your clients if their goals have changed during the year. This proactive approach allows you to align their investments in line with their goals.

Positive Feedback: When you see a positive response from your clients, it's a testament to your dedication and expertise. A satisfied client is more likely to help you grow your practice by referring friends, family, or colleagues.

Strategic Referral Requests: Conducting investor meetings regularly helps the investors understand the status of their portfolio and feel their importance. Pankaj says that after every meeting he issues a form to investors where he takes feedback from them; the feedback form has a  column for referrals at the end. If the feedback is positive, clients share referrals and then he reaches out to referrals to progress it further.

Your clients benefit from your proactive approach and you, in turn, benefit from their referrals. The more you prioritize your clients' financial well-being, the more likely they are to become your biggest advocates. This can lead to continued growth and success of an MFD.