As people who apply psychology to generating business?in the financial industry, we’re asked on a daily basis to help advisors generate referrals. So, we developed a system. If you follow the advice in this issue of InnerCircle, you will take a giant leap forward in getting more referrals. Mind you, this is just the first step. If you want to learn the other steps, just let us know.

Imagine you’re a third base coach during the World Series. You have one runner on first, and your pitcher is at bat. You need to decide right now — yes or now, the runner should steal second to keep the pitcher from hitting into a double play. Thing is, you can’t guess. You need a guideline or formula to follow: If [fact one] plus [fact two], then make decision X.

It’s the same thing with asking for and getting referrals. You need to determine a formula for When to ask, and a strategy for How to ask. Obviously, you can’t ask when you first meet the prospect because you have not yet earned the right or built any value. So, what builds value? And, how much value is enough?

We teach our clients to use two tools: 1) the Rule of 3 and 2) the Value Credit Card:

Rule of 3. This is simple. Certain things score points for you. Performance is mandatory, but it counts for only one point. The other two points come from two sources: 1) written connections, such as greeting cards, letters, post cards and gifts; and 2) personal connections, such as personal visits, lunches, sports events and other non-business activities. You cannot ask for a referral until you get three points, and if you don’t get the referral, you can’t ask again until add an additional three points.

Value Credit Card. The point is, you build value by paying attention to the client in tangible ways. Each “value event” gives you a single point, like adding cash to a prepaid credit card. The more value events you create, the larger your account grows — one point at a time. Personal visits, greeting cards, phone calls, gifts — they all build value one point at a time. Thing is, you cannot tap the account until you build up the value inside it. And, the minimum value required is three, with positive performance counting for only one point.

You want to initiate the referral talk one week after you bank the third point. That is when your value has reached its highest level and the timing is not obvious.