You don't have to be a mathematician to understand the multiplication table of referrals. For example: Six clients give you three referrals each for a total of 18. Half of that total gives you an additional three referrals each for a total of 27. Suddenly, your prospect list has grown by 45. Turning four of those into paying clients should be easy.

This principal also applies to leads and prospects. In fact, every time you talk with someone that is self-employed it can't hurt to ask them if they know of someone that could use your services.

Despite the obvious advantage of referrals, many accountants are reluctant to ask for them. They mistakenly think they might offend the client (or potential client) if they ask him or her to mention business associates or friends who might benefit from the same products they are buying. However, since most businesses depend on referral business themselves, they are typically more than happy to help out.

Certainly, you wouldn't ask a client who is unhappy with your products to recommend other people. But if you have a satisfied client, there is no reason you shouldn't ask for referrals.

Some of your clients might hesitate because they simply don't like to have their names used in any connection. If you sense that is a problem, add a qualifier, such as, "I certainly won't use your name if you prefer that I don't."

You should also take into consideration privacy issues that might make a client reluctant to refer you to a competitor, even though he or she may be a colleague. If this is possible, you should assure them that any client's information is held strictly confidential.

Other than those exceptions, all of your clients should be asked for referrals. Prospecting is a relationship-oriented business built on trust and personal contact.

Author: Allen Bostrom, CPA, www.accounting-and-bookkeeping-tips.com