We all know how valuable referrals are. They are typically your target client. They come with a level of trust already. They have a much higher conversion rate and retention rate.

My research highlights that there are only two ways to grow a financial services business:

•Organically (repeat and referred clients); and

•By acquisition - but this presents big problems/challenges.

Advertising and marketing is important - as it will help organic growth too - but imagine a situation where you consistently receive 2-3 referrals per day. What impact would that have on your business?

Before I share how to ask, lets recap on a few important matters:

1. Firstly you must become referrable

How do you know if you are referrable in the client's eyes? They return your calls, completed more than one transaction, no issues (they're happy), built likability, they have done what you said.

* Be likeable

* Be reliable and consistent

* The client considers you an expert and follows your advice

* They trust you to act in their best interest

* You have a track record of performance

* They consider you valuable resource, not a salesperson

* They know what types of prospects to refer and how to do it

2. Know when to ask

You must earn the referral before you can bring it up.

3. How to ask

The problem is that some people just won't refer no matter how happy they are! Whereas, some clients love to give referrals. So, how to you know the clients preference. That is the trick here - don't ask for referrals - ask if they'd like to discuss referrals. Here's my script:

"About 80% of our new clients come to us by referral. There's a lot of trust involved in what we do so it makes sense. I just wanted to bring this up and ask how you would like to deal with the topic of referrals? Some people never feel comfortable making referral under any circumstances - and that's fine. Whereas some people are very happy to refer, want to know how and appreciate friendly reminders. Are you happy to discuss this? I don't want to put you on the spot." [Then don't say anything!]

Tell them what sort of clients you are looking for (but you can help everyone and refer on), how to make a referral and reassure that confidentiality is an absolute.

4. How to follow up

•In conversation - e.g. I know we spoke about referrals - I'm finding lots of people don't realise how much money they can save switching to P&I

•Tell stories via email, blogs, etc. - about how you help helped people that have been referred to you

•Go out of your way to thank when you do get a referral - and let them know that they did a good thing

•Run thank you events for your top referrers