Get the most from your referral strategy by giving it a check-up.

Referrals are the preferred way to meet an advisor, says Bill Cates, president of Referral Coach International in Laurel, Md. and author of Get More Referrals Now. Evaluating your referral strategy, as you would your business plan, helps keep it on track.

Here are five questions to ask when assessing your referral strategy:

> Are you referable?
Watch out for red flags that indicate you may not be as referable as you believe.

You should receive at least some referrals without asking, says Cates. If you’re not, it may be time to ask yourself whether you are referable.

There are no set benchmarks for evaluating referrals because every practice is different and certain demographics are more likely to give referrals than others, Cates says.

As a general rule, if you’re asking clients for referrals and 50% of the time clients are willing to have a referral conversation, you’re probably fine. Less than that and you may want to evaluate your client relationships and business process.

> Are you prepared?
Be prepared to discuss referrals during meetings with clients.

Create a script as a guide for talking about referrals with a client, says Cates. Know in advance where you will take the conversation and how you will word critical questions and explanations.

Don’t “wing it” or change the wording of your script, he says. Have specific talking points such as the names of people (such as a brother the client mentioned), categories of people connected to the clients (friends, family) or the way you will outline your ideal client to determine whether the client knows anyone who fits that description.

> Are you engaging the client?
Include your clients in the referral process to make them feel confident.

When clients fail to follow through on promises to speak to family and friends about their advisors it’s usually because they lack confidence, says Cates. Talk to your client about how to introduce a referral to you. Ask for suggestions on ways to make the client and the person being referred feel comfortable. Ask why the client believes the referral is a good match for your business. As well, ask the client to contact the referral first so, the client buys into the process.

Involving the client creates an engaged introduction and makes him or her more likely to follow through on a referral, Cates says.

> Did you really ask for a referral?
Don’t assume clients know you’re asking for a referral. They may think it’s just a suggestion.

Letting clients know you are open to referrals in general is important, says Cates. But there is a distinction between promoting the idea of referrals and asking a client directly for one.

A common request for a referral is: “If you ever identify someone you think I could help, just let me know.”

This phrase promotes the idea of referrals to a client but is not a direct request. To ask clients for a referral, be specific in your wording. Cates suggests talking to clients about the value the client sees in your practice and asking about specific people, such as a family member or a friend.

> Is your process referable?
Make sure your referral process is effective, even for short-term relationships.

In addition to referrals from long-time clients, you can also get referrals from prospects or new clients, Cates says, if you have a strong process.

Before picking up the phone or sending an email, ask how you can bring value to a prospect, says Cates. For example, send the prospective client a compliance-authorized article. And, before your initial meeting, talk to the referring client to find out any assumptions the prospect may have.

When people see your value, they are likely to refer you, even if they decide not to become a client themselves.

IE