Author's Note: Over a period ofseveral years, I have written several articles on “referralswithout asking.” www.billgoodmarketing.com/real-referrals.I also posted a link to a webinar “How to Get Referrals withoutAsking.” A deep understanding of the “real referral” process isnecessary for you to have a growing referral-based practice. Startwith this article. But then pop over to my “real referrals” page.Go through my webinar.

Every sales manager since the dawn of time has told you, “Yourproblem is you don't ask for referrals. Our studies have shown that85 percent of our clients would give a referral if asked. Onlyabout 3 percent of your clients provide a referral, so you are notasking enough. When you speak with clients, ask each of them forthe names of people you could contact today.”

So you set out to do it — or not, because it just does not feelprofessional.

Advice is abundant. Just Google the phrase, “how to ask forreferrals.” Enjoy these gems.

“Act like you are already in their circle.”

“Don't feel sheepish about asking for referrals.”

“Always ask for referrals in person.”

“You mentioned your sister and brother-in-law last week. Let'sstart with them. Do you think they should at least know about whatI do? Can we craft a way for you to introduce me to them that willfeel comfortable for all concerned?”

Just reading this makes you want to clean your eyeglasses or getthe smudges off your monitor.

You know down deep that this stuff does not work. People whosenames are solicited rarely become clients. Why? Because they arenot referrals. They are just names, and perhaps only slightlybetter than cold-call names.

Plus, consider this “benefit:” You hate the process so much thatyou rarely if ever discuss referrals. Your clients may not be awareyou accept additional business. Sad.

What is a referral?

Merriam-Webster: A referral sends someone somewhere, often forhelp or advice.

Your dictionary: Telling someone about the positivefeatures of a person or a business or the person who is beingreferred.

Wikipedia: Referral marketing is a process to encourageand significantly increase referrals from word of mouth, perhapsthe oldest and most trusted marketing strategy. This can beaccomplished by encouraging and rewarding customers, and a widevariety of other contacts, to recommend products and services fromconsumer and B2B brands, both online and offline.

Bill Good: A referral is a name of a person who needsfinancial help volunteered by a client.

A “real referral” occurs when your client Bob calls and says, “Iwant you to call my sister-in-law. I spoke with her yesterday. Shesaid she is inheriting some money from her Aunt Martha. She has noidea what to do with it. I told her she needs a good financialadvisor and said I would have you call her.”

Isn't that what gets your blood racing?

Since the beginning of time, sales managers, coaches, gurus andothers have assumed the way to get more of these names is to ask.But if my definition is correct — that a referral is a namevolunteered — asking does not generate referrals, it only generatesnames.

So quit asking for referrals: Get more clients to volunteerthem.

Referrals without asking: Part I

I can summarize my strategy to get your clients to volunteermore referrals in seven words: Advice, TOMA, Engagement, Promoteand Thank You.

Sadly, these words don't make a good acronym, though maybe ATEPTY may help burn them into your mind. Let's start with the firsttwo.

Your first strategy is: Provide good insurance advice. This isjust common sense. Clients with even a trace of unhappiness willnot refer their friends or family to you. If your new car spendsmore time in the shop than on the road, would you refer your bestfriend to the dealer?

Consider this: Clients happy with your insurance advice do notnecessarily refer. You know this to be true just fromexperience.

Related: How referable are you?

Bob and Betty Barking have been happy clients for years, butthere's never been a whisper of a referral to Bob's four brothers,Betty's colleagues at her law firm, their adult children or theirwealthy parents.

Yes, some referrals will trickle in, though rarely enough togrow a business. Conclusion: Good advice is necessary but notsufficient to have a vibrant referral-based practice.

TOMA

TOMA stands for top-of-mind awareness. TOMA is a subconsciousthought, always there, that produces the first mental recall in acategory. What does this have to do with referrals? It's verysimple. Your wealthier clients have more than one advisor.

When a friend or an associate of one of your clients (who alsois the client of two other advisors) approaches you about help witha financial matter, whose name should come to mind first? The otherfull-service advisor? That nice young lady at the bank? If yourname pops to mind first, you have an excellent chance of receivingthe referral.

To make sure you understand this concept, when you read each ofthe next three words, pause for a second and notice what thoughtcomes to your mind first. Ready?

Smart phones. Hotels. Rental cars.

How do you think Apple, Marriott or Hertz stay “top of mind?”They are applying the three basic principles of mass marketing:repetition, repetition and repetition.

Assuming you are providing good advice, creating and maintainingTOMA will increase referrals. There is a back story to how I knowTOMA creates referrals.

A previous era in this industry could be called “transactionheaven.” In the '80s and into the '90s, it was not uncommon for afinancial advisor to open 150-plus new client relationships in ayear. You could sell 1,000 shares of a $10 stock. All of the firmswere fine with that.

The Challenge

How do you keep the clients that you are adding while continuingto bring on new ones? I was wrestling with this issue in 1989. Myown clients were asking, “How do I keep my clients from wanderingover to the neighbor's pasture?” I had some pieces of an answer butnot all of them.

Related: 8 ways to build extreme clientloyalty

One day I was flipping through The Wall Street Journaland came across an article with a headline like, “Why InvestorsLeave Their Broker.” The survey gave three reasons: “poorinvestment advice,” “poor service” and “don't even hear from mybroker.”

Guess what? The reasons are substantially the same today, justthe terminology has changed from “broker” to “advisor.”

As I read that article, I thought, “If these really are thereasons people leave their advisor, and if I can handle them, thenthat's the formula I'm looking for.”

The work that I did back then has evolved into the “clientrelationship retention formula” — a key strategy for advisors tokeep their clients. I have reproduced the entire formula for you onmy “referral challenge” web page.

Initially, the formula required 18-22 touches a year. Everyclient received a letter each month, every client received a phonecall at least four times a year from someone in the advisor'soffice, and every client and spouse received a birthday note. (Werecommended writing the letters with all the proper etiquette.)

New formula

Because of the torrent of information your clients receive, Inow believe that 8-22 touches are no longer as competitive as theyonce were. I still believe “every client must receive a letter eachmonth,” but I also believe you better send an email once a weektoo. That boosts the number of annual touches to around 72.

What does all this have to do with referrals? Top-of-mindawareness!

A year or two after we started using the client relationshipretention formula, my clients said this: “Since I started usingthis client retention formula, we're getting more referrals. And weare not even asking for referrals. Why is this happening?”

For a long time, I had no answer. And then I stumbled upon thedefinition of “top-of-mind awareness.” Bingo!

Advisors who are executing the client relationship retentionformula create top-of-mind awareness. When your clients are in asocial situation in which a referral to a financial advisor isappropriate, they think of you first. You get the referral, not theother two advisors!

As long as you are providing good advice, if you get to workcreating top-of-mind awareness, your real referrals will increase.You will begin to enjoy more “referrals without asking.”

Bill Good is chairman of Bill GoodMarketing. To preview Bill as a speaker see his YouTubechannel.

Related: Want prospect who want to hear from you? Getreferrals