The Fact: Of the 28 clients that the average advisor attracted in 2001, 12 were referred by existing clients.

The Implications: Research suggests that advisors received fewer referrals in 2001, reflecting slightly lower growth rates overall. While advisors successfully added a client referral to their client base on a monthly basis, 12 referrals represents less than 3% of clients.

The Idea: Referral levels suggest that advisors have an opportunity to increase referrals from existing clients. In your next client survey, include a question that asks clients if they would be comfortable providing referrals. You will find that 80% to 85% say they are somewhat or very willing and that is your target group. The math is simple. If you have 300 clients and achieve a 40% response rate on your survey and if and 80% of those say they would happily provide referrals, then you have nearly 100 names of clients to target. They have opened the door to a comfortable conversation about the types of clients you are looking to add to your practice.

The Next Step: The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.