title: Getting Referrals description: [AFW S.14] Your goal is to build a 100% referral-based business. published: true date: 2026-06-30T08:08:08.741Z tags: editor: markdown dateCreated: 2021-04-20T08:00:20.888Z

Introduction to Referrals¶

Broadly speaking, there are only three methods of acquiring new clients (in order of effectiveness):

Personal prospecting.
Getting referrals.
Passive marketing.

The Magic Ingredient of High-Performance Professionals¶

Deeper Research¶

Watch 100% referral-based business VIDEO

Watch Referrals, Part 1 (MKOM 1600. March 18, 2024) VIDEO

Watch Referrals, Part 2 (MKOM 1601. March 25, 2024) VIDEO

Watch AF MKOM 1639: Getting Referrals, Part 1: Deserving Them VIDEO

Watch AF MKOM 1640 - Getting Referrals, Part 2: Asking for Them VIDEO

Nick's View on Referrals¶

"The best lead is always a referred lead." Nick Murray

Read Nick's ATY 052 February 21 - Problematic Referral PDF

Read Nick's ATY 054 February 23 - Deserve Referrals PDF

Read Nick's ATY 055 February 24 - Recruit to Refer PDF

Read Nick's ATY 148 May 28 - If You Deserve Introductions, Ask for Them PDF

Read Nick's ATY 354 December 20 - Starting Up The Referral Machine PDF

Read Nick's ATY 356 December 22 - Only 2 Kinds of Money PDF

Read Nick's NMS 39 - General letter seeking introductions PDF

Read Nick's NMS 40 - Letter seeking introductions post-crisis PDF

Read Nick's NMS 74 - Great referral source; bad referral PDF

Pages 186 - 190 of The Excellent Investment Advisor by Nick Murray BOOK

Content By Bill Cates¶

Bill Cates does one thing - teach financial advisors how to get referrals.

For videos and PDFs by Bill Cates visit this Proton Drive folder.

Unlimited Referrals by Bill Cates BOOK Your goal is to build a referrals-based business. Bill Cates specializes in referrals for financial services professionals.

Get More Referrals Now! by Bill Cates BOOK Sales legend Bill Cates uses his experience and expert knowledge to show sales professionals how to work smarter (not harder) by employing The Four Cornerstones of Referrals.

Beyond Referrals by Bill Cates BOOK What's better than getting new referrals? Getting new customers.

Don't Keep Me a Secret: Proven Tactics to Get Referrals and Introductions by Bill Cates BOOK
e-book ABS Word-of-mouth, person-to-person connections matter more to your success than all the hard-sell strategies in the world.

Hints, Tips & Thoughts on Referrals¶

A consistent stream of referrals is a form of "residual" income.

When do you ask your clients for referrals? After they say "thank you".

Eventually, you'll want to have a "By Referral Only" business. At a minimum, you want a business whereby 50% of your new clients come from referrals and the other half from personal prospecting.
Getting referrals is a process, not a single magic conversation.
Make sure you have high-quality business cards to give to your clients to pass out.

There are only two ways to get referrals¶

You ask for them.
A client offers you one, unsolicited. Usually this happens when your clients are asked by their friends and family if they know someone that can help them with their finances. You need to be that someone.
- How would your clients introduce you to their friends?

Letter to Existing Client Seeking Introductions¶

Read Nick's NMS 40 - Letter seeking introductions post-crisis PDF

I started my financial planning practice 36 years ago with the goal of serving a finite number of families with a focus on long-term equity investing. I'm happy to tell you that this process is now well along. I can begin to see the day approaching when I will need to stop accepting new clients.

Between now and then, I would much prefer to establish relationships with colleagues and friends of my existing clients. I enjoy working with you and I'm sure I'd enjoy working with people whom you like and admire. If, and only if, I'm servicing you as you'd hoped I ask you to introduce us.

The Warm Introduction Referral System¶

4 Step Outline¶

Deserve Referrals.
Ask your client for four warm introductions.
Your client contacts those referrals and asks them to agree to accept a 10-minute phone call from you.
You make a 10-minute phone call to the referrals with the intention to setting an face-to-face Client Appointment.

Step #1: Deserve Referrals¶

Referrals must be earned, not demanded. Your clients must want to provide you with warm introductions. Here are the trust-levels of most clients:

Level 1: "I trust you with some of my money."
Level 2: "I trust you with my wealth."
Level 3: "I trust you with my friends, family and colleagues."

Three Reasons Why Clients Don't Give You Referrals¶

They fear you may do harm to the people they introduce you to.
They have privacy concerns.

"First, the work we do is, and always will be, completely confidential. No one will ever learn about your situation from me, or vice versa."
They don't know how to tell your story to their friends.

Provide Excellent Service & Build Trust¶

The client is thinking, "The way you treat me is how you will treat my referral."
Every interaction should leave a client feeling good about you. Whenever interacting with a client in any way, try to visualize that client standing in the doorway of a large ballroom filled with their friends, colleagues, associates, neighbors and relatives. Immediately after your interaction, they will go back into that ballroom and talk to the people in their world about you. What will they say?
Be professional, personable, kind, respectful, gentle, soft-spoken and patient. Be an Advisor, not a salesperson. Master the 10 Client-Facing Service Tips AFW P.1.
Directness and honesty. Always tell the plain, unvarnished truth.
Be a promise keeper. Do what you say you will do. Under-promise; over-deliver AFW M.1.23.
One of the best ways to start getting referrals is to start giving referrals. “If I ran into great prospects for your business, how would I know it and how would you like me to introduce them to you?”

Send Gifts¶

One life insurance company had 400 agents participating in a study. Over six months, half of the agents sent small gift/promotional items to their clients who gave them referrals and the other half sent nothing. After the six-month period, the agents who were sending the small gifts had received 40 percent more referrals.

By the wat, don’t wait for prospects to become clients. Reward the gift of giving the referrals.

Jeff Chaddock, an Ohio-based financial professional, gets more referrals than anyone else in his company of 8,000 advisors. How does he do it? He makes a big deal when people give him referrals. He sends small gifts such as certificates for an oil change, car wash, or movie. Or he’ll send lottery tickets and other fun items that are inexpensive and easy to mail. He’s well known in his company for sending his referral sources big tins of cookies with his business cards and notes that read “share the cookies and share the cards.

Stay Top-of-Mind¶

Send handwritten Thank You Notes.
Send birthday wishes to your clients and their family.
Email your monthly client newsletter and do it consistently.
Use Social Media to remind your followers (which should include your clients) of basic investment principles by posting approved marketing pieces.
Your voicemail greeting: "Hi, this is Bill Cates, financial advisor. Please leave me a message. If you were introduced to me, please let me know whom I need to thank."

10 Client-Facing Service Tips¶

Visit Friendly Skills AFW P.1.

Conditioning Your Clients for Referrals¶

As you begin your relationship with a new prospect, get the referral process started right away. I call this planting referral seeds. This strategy will increase the chances of getting referrals, often without even asking.

When meeting with a new prospect for the first time, talk about the person who introduced the two of you. Ask them if they felt more comfortable meeting with you because their friend, family member, or colleague recommended you. Celebrate the whole process.
As your appointments are ending, tell your prospects and clients, "Don't keep me a secret." This simple technique often produces results right on the spot.
Give them a couple of your business cards to carry. Tell them, "One is for you, in case any questions come up. The other is for a friend who might be interested."
Tell your prospects and clients that you're never too busy to see if you can help out any of their friends, family, or colleagues.
Put “By Referral Only” or "Don't Keep Me a Secret!" on your business cards, correspondence, email signatures etc.

During your presentation when something sparks their interest, you can say:

"How many families can you think of would benefit from knowing this?"

"Wouldn't you agree that everyone should learn about the magic of compound interest?"

Step #2: Asking for Four Introductions from your Client¶

Most Advisors ask for too few or too many referrals, then when that doesn't work they stop asking. We will only ask for four (but we'll be happy with one or two).

What Constitutes a "Warm Introduction"?¶

In the correct market.
Name.
Phone number.
Permission to call.
Recognize my name.
10 minutes to tell my story.
Spouse must be present.

Scripts For Asking For Introductions¶

"Other than you who's the first person that comes to mind that is also looking to improve their financial situation?"

"Do you have friends who have kids? If you had to guess, do they have their children's college education totally taken care of, and are they aware of the tax benefits available to them, such as 529-Plans or UTMA accounts?"

"If you know people who might benefit from the sort of investments you have with me I would certainly appreciate you introducing me to them. I very much enjoy working with you, and would welcome the opportunity to offer the same to people whom you care about."

"The highest compliment you can give me is the introduction to someone else you care about."

“I’m never too busy to see if I can help any of your friends, colleagues, or family members.”

"I'm certain there are people you care about, who might also value this type of work."

The Complete In-Person Script¶

John and Mary, I am very excited about what we have accomplished here together! Tell me, how do you both feel about it?

I'm glad you see value in the work I do. You know, there are many people who are getting no advice, bad advice, or incomplete advice. And because of that, they are setting themselves up for financial disaster. Perhaps we can both help them. I'd like to ask you for introductions to a few of your friends, colleagues, or family members that I may be able to help.

First, I want you to understand that you will never be embarrassed by the way I treat your friends. It probably goes without saying, but I want to assure you of total privacy. At no time will I ever discuss your financial situation with them, or vice versa. Everything is highly confidential.

I was wondering if you would mind if we brainstormed together to see if we could identify just three to four people who should know about this important work?

After you've gotten then names, then say...

What I ask of you is to simply introduce me to them and have them accept a 10-minute phone call from me. I don’t like to call people and take them by surprise. I’ve found it usually works best when the person I’m calling knows who I am and why I’m calling, and is at least open to a brief conversation. I don't want to you "over sell" me, or try to convince them to do business with me. Merely ask them to talk with me for at least 10-minutes. And, please make sure that both spouses will be on the call..

Letter/Email Asking for Referrals¶

Read Nick's ATY 355 December 21 - Letter Seeking Referrals PDF

I started my practice some years ago with the goal of providing a relatively finite number of affluent families with the highest level of advice and service.

My goal, in terms of the number of households I feel I can serve with distinction is now in sight. And I can see the day coming when I will need and want to stop accepting new clients. Before it does, I would much prefer to establish relationships with the friends and colleagues of my existing clients. I particularly enjoy working with you, and am sure I’d enjoy working with the people you like and admire.

To that end, I’d like to ask you to introduce me to such people – provided, of course, that you are comfortable doing so.

I don’t expect – and wouldn’t think I deserve – introductions from any client who wasn’t satisfied and happy with the advice and service I provide. So I urge you to let me know of anything you need or want that I’m not already doing.

But if I’m serving you in the ways you hoped and expected I would, then and only then, ask you to introduce me to people you believe be similarly cared for.

I treasure my relationships with my clients, and seek only to serve more people like you.

Thanks you for your time and consideration.

For more than 36 years I've have made myself available to act as a sounding board for anyone who may need retirement-income advice — or just a second opinion.

As a result, my business now comes to me almost exclusively through referrals. So, if you’re approached by a friend, neighbor or family member; or if you know someone who just needs a sympathetic ear, please let them know that I will always find the time to listen; and I’ll do my best to help.

By making myself available in this way, I'm striving to make our little part of the world a better place to live. I do well by doing good.

Learn About the Referral(s)¶

Find out what you can about the referral. Here are two good questions to ask:

What’s going on in their life that might be related to how I can help them?
Tell me something you like, admire, or respect about them.

Step #3: Your Client Contacts the Introductions¶

He is not to talk about products, prices or other details.
He can talk about you, and how professional, easy-going and non-threatening you are.
His goal is just to get his friend to accept a 10-minute call from you.
Both spouses should be present for the 10-minute call.
No obligation, no pressure, and they can hang-up after 10-minutes.

George, I would appreciate you doing me a favor. I would like you and Lisa to take a phone call from Michael Thomas, he is our Financial Advisor. He's a nice guy and really helped us a lot with our finances. Would you accept a 10-minute phone call from him - after ten minutes you can end the phone call or keep on talking. He's not high pressure or aggressive.

Step #4: The 10-Minute Call to the Referral¶

The people you are calling must have be prepped by your client. Your prospects must be expecting your call.
Your goal is to just get a face-to-face client appointment. Not to convince, persuade nor sell. In the worst case, get permission to add them to your Introductory Email Series and your Monthly Client Newsletter.
Both spouses must be on the call with you.
When you making the call let it become a conversation. Relax. It is very important that this becomes "yours" and does not come off sounding like you are reading a script. Just be yourself and become familiar with the basics of the conversation. Enjoy meeting a new friend.

Outline¶

I am applying for the job as your Financial Advisor.
How I get compensated.
Questions and survey to determine if we're a good fit.
Coffee script.
This is how we work: we will conduct two meetings:
First meeting is to inform, educate and gather information and identify goals.
Second meeting is to offer recommendations.
Only then will you decide to hire me.

The Script¶

Hello, Mrs/Mrs. Prospect, my name is Michael Thomas, I am an Investment Advisor and I was referred to you by Geoarge. Did he talk to you about me?

I'm calling to apply for the job as your family's Financial Advisor. I would like to chat with you for about 10 minutes, and share a little about my philosophy and the kind of work that I do. If at the end of 10 minutes I've sparked an interest we can keep talking as long as you want, otherwise we'll just hang up. Does that sound fair?

I help families make smart choices about their money, primarily regarding retirement income, but also on college planning, life insurance and living trusts.

Now, just because I was able to help George doesn't mean I can be of value to you, but we can figure that out pretty quickly. I'd like to ask you a few questions to see if it even makes sense for us to get together.

I generally work with families who have two characteristics:

They are serious about retiring with financial security, and

They are receptive to professional relationships.

Do you feel that describes you?

Ok good. As nearly as you can tell, when you think of your retirement, does it seem more probable that you will out-live your money or that your money will out-live you?

Finally, do you know if your retirement income will increase as the cost of living continues to goes up?

If you don't know here's what I offer... a relaxed, non-threatening conversation and a fresh pair of eyes.

If you're open to it, I'd like to chat with you in detail and ask you to outline your financial goals and review your current investments. If I think your strategies continue to be well-suited to your retirement, I'll gladly tell you so, and be on my way.

If, on the other hand, I think some of your investments or strategies don't longer fit with your goals, I'll explain why, in plain English. And, I'll recommend some alternatives.

Understand that there is no cost nor obligation to you. How does that sound?

Great. Do you have time now to continue our conversation?

In the worst case, get permission to add them to your Introductory Email Series and your Monthly Client Newsletter.

Additional Tips¶

If you are emailing your referral, use the referral source’s name in the subject line.

Donna — Bob Smith asked me to contact you
Donna — Bob Smith thinks very highly of you