Increase Your Financial Services Practice 8% Every Year

Use This Super-Simple Technique to Get New Clients


For successful financial advisors, what percentage of new clients do you think comes from client referrals?

  1. 5%
  2. 10%
  3. 25%
  4. 50%

According to a study by Cerulli Associates, the answer is “4.” Nearly 50% of new clients come from client referrals. Impressive, isn’t it?

But here’s the strange part. Only 10% of advisors actually ask clients for referrals. Talk about a missed opportunity!

Some advisors worry they’ll sound like a salesperson if they ask. They’re hoping their clients will offer referrals without being asked. But that’s just wishful thinking.

Studies show that a proactive referral process can increase your business 8% or more per year!

Concept Application

From early in his career, John knew the key to business growth was asking his clients to identify other people who had money and then getting them to introduce those people to him.

“You have to be willing to ask,” John says, “and I ask all the time because I believe I offer something special and will do a great job for anyone referred to me.”

John is direct in his referral approach. He says he words his requests like this: “I’ve always enjoyed working with you and your wife. If you know anyone else like yourself who I could help professionally, I would appreciate a referral. I’m always looking for new clients like you. Does anyone come to mind right now?”

John says most clients are happy to provide referrals because he works hard to ensure they’re raving fans.

Take Action

A proactive referral process should include asking every significant client for referrals at least once a year. Think about the next planning session you have with one of your existing clients. When you write the agenda, include “referrals” as the final item.

When you invest time with a client, reviewing the plan developed, putting performance in the right perspective and connecting personally, you create goodwill. This session, face-to-face for best results, sets the stage for you to ask for referrals.

If you are proud of your work, you should feel confident offering your clients this opportunity to introduce you to their friends and colleagues.

Learn More

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