Discussion:Clients - the ones who ask for referrals

Somehow they think I am going to market their services, absolutely not!

I am at the point where if they even ask I may just tell them I can't accept them as a client. I'm in business to give quality accounting and tax services, not to provide a marketing network.

Anyone else have this pet peeve?

My clients are lawyers, yoga teachers, animation artists, personnel specialists, etc. If a client needs a referral to one of these, I'm happy to pass on a name or two, though I will not say "oh, I have a client who does that."

I said if anyone asks for a programmer/web development I could refer them to you.

Guy actually had the idea I would market his services or some nonsense if he became a client. Real young obviously geeky computer guy. Wouldn't be a bad client because I could teach him how to do things in the proper way, and everything would be smooth. But on the other hand I just don't feel like putting up with naivety. Do I actually need to sit the guy down and explain the obvious?

The best clients for me are those that have used an accountant, and are unhappy with the amount they are paying or the service received. They absolutely appreciate me. Startups - not much interest in.

I'm not a huge fan of start-ups either, but the main problem I have with the businesses that switch from another accountant is that they sometimes come with bad habits. I have one that constantly buys regular clothing with his business account, groceries, home repairs, all his utilities etc and says his old accountant allowed him to deduct all of that because he uses everything he has (cards, house, boats, etc) in the business. I have another one whose old accountant was fully depreciating his personal vehicle on the company's books even though only 40% of the mileage is for business.

I may have a different take on the situation but I consider my clients and myself to be in the same boat...all looking for a new sale. I consider it a bonus for being my client and if I can happen to get them some business, it will probably help keep them making money and build some real loyalty to me.

I do, however, work with a lot of startups so they are hustling like I am.

Michael

That said, I am not an extension of my client's sales force and I tell them that. If I pass on a referral it is up to them to earn the prospect's trust and close the sale.

The best referral relationships I have are the ones where there is mutual trust between myself and the other party, and there is no pressure to make referrals one way or the other.

What I hate, though, is when a client asks if I have any wealthy investor clients who might like to help finance the requestor's latest endeavor. I politely say that I will keep them in mind and pass their contact info on if I come across such a person. In 21 years I have yet to come across a financial angel.

"I am not an extension of my client's sales force and I tell them that"

Exactly, now how to get it across without seeming heartless!

I've only ever had one negative reaction to this approach: my client was a multi level marketer and looking to recruit new members into his network. He wanted me to show my other clients his promotional DVD. When I refused, he got upset and needless to say we aren't working together any more.

I should have also mentioned I don't pay for incoming referrals and don't expect to get paid for referrals I give (small gifts of appreciation excepted).

Quite often I will have a start-up business stop by or set up an appointment with me in an attempt to tie into my client base. I'm polite, but more often than not nothing happens further since I do not have confidence my clients would be better off by the referral.