Kevin Lawrence is a business-building coach, speaker and author who works with professional financial and investment advisers (along with insurance agents and accountants) to assist them in building their businesses by increasing referrals and repeat business -- the most efficient and profitable growth strategy in existence. In an exclusive interview with author Carla Shore, Lawrence offers some common-sense advice to planners seeking to increase their business.

"Between 60 percent and 90 percent of clients are more than willing to give referrals to their financial planner," says Lawrence. "The problem is that they are never asked."

Referrals Are Cheap and Incredibly Profitable
Your clients already know how good you are but it may not occur to them to refer friends or colleagues to you until you ask. With a referral, Lawrence says, your service is already sold. And compared to other methods of searching for new clients, referrals are cheap and incredibly profitable.

"Often your clients are not familiar with everything you do," he says. "They think of you in one particular way but don't realize all the other things you do for them." Your clients just need to be reminded of all the services you offer and told that you appreciate referrals.

"Referrals are a sustainable way to grow your business," he notes. "And when you build a 'referral culture,' your business will continue to self-generate."

One of the biggest problems for planners is actually communicating the message that they need new clients. "When you're asked, 'How is business?' most planners want to appear very busy," Lawrence points out. "After all, who wants to say they're not doing well? But this gives mixed messages to clients. They'll think you're too busy to take on new business."

Lawrence suggests planners learn to say 'Business is going very well but I'm always looking for a couple new clients like yourself.' "Appearing busy is great but just be sure you leave room for referrals," he cautions. "It's hard to say 'I need more business,' so don't! Say 'Business is fantastic but I could always use more.'"

Many planners have the misconception that if their clients really appreciated what they were doing, they would give referrals automatically. "This just isn't true," he says. "Planners can be afraid of what clients will think if they ask but clients are happy to give referrals. If you just ask in a professional manner, you will get referrals."

How to Ask for a Referral
To ask for a referral, make a list of your current clients. Plan when you'll phone them and what you'll say. Lawrence suggests that planners set themselves a goal of getting 10 referrals in the next month. Think about how you will reward clients for the referral. Will you send a thank-you card? A gift?

Pick a time to call your entire client base and set it aside. In one simple phone call, you can check in with your client, see if he or she needs anything from you and then ask for referrals -- all at once. Plan to complete all of these calls in one go, if possible, to maintain your momentum and to be most efficient at referral generation.

Lawrence suggests a possible script for a referral-generating phone call:

Hello, do you have a minute? (Always make sure the client has time to talk to you.)

I have a couple of things I wanted to talk to you about. First, is there anything else that I can do to help you? What do you see coming up in the next six months that you may need my assistance with?

The other reason for my call today is that, as you may or may not know, I am looking for additional clients like yourself. I'm calling today to see who else you know in … (the client's industry) that has … (list key indicators that will distinguish this person) and could benefit from my services as you have. Who comes to mind?

(If your client names people, ask:) How should I approach them? (Let your client decide if he or she wants to call this person before you do.)

(If your client does not name people, say:) Okay, if you do think of anyone, just give me a call. If you don't, that's okay too!

Thank you.

Lawrence suggests that this approach offers little pressure on your clients but does ask them specifically for referrals. It respects the client and makes a request of him or her, but doesn't paint that person into a corner.

When to Ask for Referrals
There are many different times to ask for referrals that are appropriate -- planners just need to get in the habit of asking. Ask when a client compliments you or when you have a meeting. Ask in your newsletter, in a client-specific letter or e-mail or at a client-appreciation event.

"Get in the habit of doing it," Lawrence adds, emphatically. "If you ask in a professional manner, you will get referrals. It's that easy."

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