We know from research that 80% of revenue for most Financial Advisors comes from existing clients. In addition, of the remaining 20% of new business, as much as 70% comes from referrals. But wait a minute; those numbers are only relevant for advisors who already have a successful system for getting referrals. Our experience is that very few advisors know when or how to ask for referrals.
For those who do not yet have a successful referral system, the numbers are likely reversed. In other words, your client base is likely stagnant or diminishing, rather than growing at the rate it could. If that's you, it means you're working far harder and getting far less return. That's a sad scenario, but it describes most advisors.
This article focuses on how to get referrals. It gives some of the psychology at work, and gives you the first step in a psychologically valid referral system. Today, we focus on When to ask.
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