DRIVING REFERRALS
By Bill Cates
Article Experience Options: Click here to Listen or Click here to Watch the full interview
Why referrals should drive your growth
For California health and life brokers, organic growth and exit value increasingly hinge on something many still treat as optional: a deliberate referral and introduction strategy grounded in real client advocacy. Bill Cates emphasizes that the fastest path to relevance with new prospects is through introductions from people they already trust, which also makes your book more attractive and valuable when you are ready to sell.
Health and benefits brokers understand that buyers pay for predictable revenue and replicable processes, not just a static commission stream. When your book is built on referrals and warm connections instead of cold lead generation, your clients are already conditioned to introduce you, which can significantly enhance perceived goodwill and transferability in a sale.
The more momentum you have created through referrals and introductions, the more valuable that book is going to be.
From cold leads to warm introductions
Cates contrasts high volume lead tactics with a business built on introductions. One broker he spoke with was proud of the internet leads he generated yet was converting only about 5% into clients a process the broker admitted felt like cold calling and exhausting “weeding through all this trash to find the diamond.” Cates argues that while there are many ways to generate new clients, the high quality sustainable approach is to build the business around how people actually prefer to meet you through trusted introductions.
He urges brokers to stop thinking only in terms of referrals and instead focus on connections and introductions that actually get made and tracked. Clients often say they will introduce you, but you have no idea if they did or how they framed you, which is why Cates recommends using and reinforcing the specific language of “introduction” and “connection” with clients and centers of influence. This shift from vague word of mouth to intentional connection is particularly important in a world where prospects rarely answer unknown calls and inbox noise is constant.
Capturing value at the moments that matter
For California health brokers, especially in group and Medicare markets, the strongest referral opportunities usually surface after you have walked clients through high stress events such as a major claim or complex care episode. Phil Calhoun notes that once a broker helps an employer or individual navigate the health care system through a heart attack, stroke, or other major medical event, the trust factor “just explodes.” That is the moment to open the door to referrals because the client now sees you as an essential advocate rather than just a distributor of products.
Cates ties this to what he calls value discussions. Instead of simply waiting for spontaneous praise, he suggests deliberately asking open ended questions that prompt clients to articulate the value they have received. For example, “Tell me the value you feel you have gotten from this process.” Hearing their own words reinforces their perception of your impact while giving you a natural segue to explore specific introductions to siblings, business partners, or key relationships rather than casting a vague “who do you know” net.
Making your book more sellable
Calhoun reminds brokers that in health insurance, residual commissions keep flowing as long as you keep the client, which is why buyers often start by looking at annual commission levels and applying multiple. However, some sellers bring additional engines such as lead generating websites or proven touch programs that consistently produce referrals and retention, and those elements can add real value if they are transferable.
Cates reinforces this with an important data point: clients who enter your practice through a recommendation are roughly two and a half times more likely to provide recommendations themselves, regardless of product line. If your book is built on referral driven relationships and you have documented processes for staying in touch and requesting introductions, buyers acquire not just revenue but a culture and system that continues to reproduce new clients. That said, he cautions that referability can fade quickly if the acquiring agency fails to renew relationships and maintain the cadence of value and personal touches that clients have come to expect.
The role of consistent touches
Both Calhoun and Cates underscore that ongoing touches are non-negotiable in retaining clients and preserving book value, especially in individual Medicare and small group segments where competition is intense. Beyond automated birthday and holiday cards, Cates recommends a dual track of value touches such as newsletters, guides, and short videos and personal touches tailored to the individual relationship.
He warns that if a client does not hear from their professional for about a year, the odds of retaining that business can drop to roughly a coin flip. Even if clients do not open every newsletter, the consistent presence of your name keeps you top of mind and makes it easier for them to recall you when benefits come up in conversation with friends, family, or fellow business owners. For California brokers under constant carrier and regulatory change, this level of contact also positions you as the steady interpreter of plan shifts, network changes, and compliance issues rather than leaving clients to navigate alone.
Collaborative partners and post sale revenue
Calhoun describes a path that many California brokers follow selling all or part of their book yet staying engaged through cross selling arrangements in lines like lifelong term care and annuities by partnering with subject matter experts. In those models, the selling broker moves into a referral and relationship role while specialists deliver product expertise allowing the original broker to continue earning and serving without carrying every license or product line personally.
Cates frames these relationships as partnerships or centers of influence driven by the same two fundamentals: referability and connection. You must be clear about your value and process so partners feel confident introducing you and you should continually feed them short case studies that show the client situation, your work, and the outcomes to keep your value vivid. He also advises brokers to explicitly discuss how introductions will be made because simple name dropping by CPAs, attorneys, or other professionals is not enough. Without a real connection, prospects will continue to delay the very decisions the partner hoped to prompt.
Easy yes offers and strategy sessions
Calhoun explains that his own commission planning practice uses a 15-minute free phone call for brokers considering how to protect grow or sell their health commissions which serves as a low friction advisor style entry point. Cates is a strong proponent of this structure describing it as an “easier yes” for prospects and a clear process that referral sources can confidently describe to their contacts.
He suggests positioning these calls as short, complimentary strategy sessions where both sides learn about each other and determine whether it makes sense to continue rather than as veiled sales pitches. The key is that the call must deliver genuine value through thoughtful questions and insight so that even those who do not proceed still report back to the referral source that the experience was helpful and professional which in turn reinforces your reputation.
“What we are going for here is easier yeses.” Bill Cates
The mindset that sustains referrals
In Cates’ experience, the brokers who thrive with referrals and introductions are those who see themselves as on a mission with a strong emotional connection to the value they create and the ripple effect of their work. That mindset shifts the conversation from “help me build my business” to “let us extend this value to other people you care about,” which resonates more deeply with clients who just experienced your advocacy.
He cautions against old school scripts that center the broker and instead urges California professionals to anchor every introduction conversation in client outcomes reduced confusion smoother claim navigation or better benefits decisions for their employees and families. When you genuinely believe your value is worth sharing you no longer feel needy or pushy asking for introductions you are simply inviting clients and partners to pay forward a level of advice and advocacy that they already know can make a critical difference.
Working with Bill Cates
For agencies and individual brokers who want to go deeper, Cates works both one-on-one and with groups to strengthen referral and introduction processes as well as sharpen value propositions and messaging. He starts with the same type of complimentary strategy session he recommends to brokers: a 15- to 20-minute phone or Zoom conversation to understand your situation explain his approach and decide together whether there is a strong mutual fit.
Those interested in engaging with Bill Cates can schedule a brief strategy call to explore support with building referral driven growth tightening value messaging and enhancing the referability and market value of a current or future book of business. In keeping with his philosophy that every relationship should be value-based, he only moves forward when he is confident he can bring meaningful results to the agency, team, or individual broker.
The more momentum you have created through referrals and introductions, the more valuable that book is going to be.
Bill Cates, CSP, CPAE Bill Cates, CSP, CPAE, works with financial advisors to speed up their growth without increasing their marketing budget. Advisors tap into Bill’s proven process to multiply their best clients through introductions from advocates and Centers of Influence, communicate their value proposition more effectively, and create a reputation in a profitable target market. Bill helps advisors move from push prospecting to magnetic marketing – to attract more Right-Fit Clients™.
Contact: Email: BillCates@ReferralCoach.com ● Website: www.ReferralCoach.com
The more momentum you have created through referrals and introductions, the more valuable that book is going to be. Bill is the author of 3 best-selling books: Get More Referrals Now, Beyond Referrals, and Radical Relevance. Bill’s newest book, The Language of Referrals, was released in March of 2024. He is the founder of The Cates Academy for Relationship Marketing™, was named the #1 Financial Advisor Influencer by Indigo Marketing, and is the host of the acclaimed Top Advisor Podcast – now ranked in the Top 5% of podcasts worldwide.