Podcast Summary: Financial Advisor Success – Ep 463

Generating 10–15 Referrals Per Week by Coaching Clients to Make More Effective Introductions with David Stevens

Date: November 11, 2025
Host: Michael Kitces
Guest: David Stevens, President of Stevens Capital Partners (Omaha, NE)

Episode Overview

In this episode, Michael Kitces talks with David Stevens of Stevens Capital Partners, exploring the proactive referral process that enables Stevens’ firm to generate 10–15 client referrals per week. The discussion dives deep into coaching clients on making introductions, segmenting service models for efficiency, the economics of new client segments, and building a culture that connects client service, growth, and giving back.

Key Discussion Points and Insights

1. The Power of Proactive Referrals

• Referrals Still Rule: Despite the rise of digital marketing, about two-thirds of new advisory clients still come by referral, with most coming from existing clients ([03:07]).
• Planting the Referral Seed: David explains how his team “plants the seed” early and often that referring friends and family is both expected and normal:
  • In initial discovery meetings, the advisor says:

    "Most families we work with do refer to us within the first few weeks of getting to know us."
    (David Stevens, [04:51])

  • The topic resurfaces during fee discussions, with a casual mention of aggregated family fees if they refer others.
• Coaching Clients on the How: When clients mention telling friends/family, Stevens encourages a three-way introduction via text.

  “Something that might work a little bit better to make Bob feel comfortable is if you want to send a text message to Bob, include me on it. …It creates a little bit more of a warmer dynamic.”
  (David Stevens, [04:51])

2. High Referral Volume and Client Segmentation

• Referral Flow: With 575 households, Stevens’ firm is getting 10–15 introductions per week; about half are ideal prospects, and half are “G2s” (younger, next-gen clients) ([08:17]–[09:30]).
• Handling Unqualified Referrals: To serve younger, emerging clients, the firm created a dedicated service model and advisor for them instead of turning them away.
• Three–Way Texts vs. Email: Text introductions with both client and prospect in the thread have much higher response rates than email ([50:38]–[53:23]).

3. Building Scalable Service Models

• Emerging Client Segment:
  • Flat fee ($2,500/year; minimum $5,000/year for regular clients).
  • 200–215 households in this segment (managed by a single, high-capacity advisor).
  • Quarterly “office hours” via short Zoom calls, with one annual deep review ([12:17]–[14:44]).
  • Service model allows capacity up to ~350 clients for that advisor.
• Segmentation by Advisor Skill:
  • Four client segments: Emerging/HENRYs, Traditional Retiree/Pre-Retiree ($500k–$5m), Private Client ($5m+), and Business Owners/Exit Planning ([63:44]).
  • Each advisor handles a specific segment, specializing their skill set and client experience ([21:49]–[23:13]).

4. Advisor Compensation and Business Development

• Comp Structure:
  • Generous base salary, calibrated to a rough percentage of book revenue.
  • Quarterly bonus pool ranked by scorecard (includes “MAP” calls—Markets, Accounts, Personal—[25:07]).
  • Business development incentive:

    “20% of first-year revenue for self-sourced business. …We pay it the month after the client actually gets billed.”
    (David Stevens, [27:01])

• Total Advisor Comp Target: One-third of revenue allocated for advisor compensation ([28:42]).

5. Training, Culture, and Process Documentation

• SCP Academy:
  • New advisors trained with a comprehensive “step-by-step” business development binder (initial contact through ten years of client relationship).
  • Training covers technical skills, client conversation scripts, and soft skills (e.g., reading/client temperament via “Personality Plus” and “Culture Index” assessments) ([30:27]–[32:15]).
• Creating the Training Binder:
  • Consultant Abby at Archway Consulting helped systematize David’s knowledge into a manual over six 1-hour sessions.
  • Cost: $3,000 ([35:42]).
  • Key techniques: Assumptive referral language, deep client listening skills, and relationship-building (“the 1-100 rule”; [32:30]).

6. Service Model and Fee Structure

• AUM and Fees:
  • $520M AUM; 575 households; $6.2M annual recurring revenue (~1% yield).
  • Tiered, blended fee schedule—premium level (e.g., 1.35% on the first $2M, stepping down; [57:32]).
  • Separate planning fees for emerging clients and business owners (up to $50k+ for complex exit planning).
  • Direct covering of some outside professional fees (e.g., attorney fees for top-tier clients) ([71:49]).
• Tech Stack:
  • MoneyGuide Pro + Yodlee aggregation for planning ([67:08]).
  • Microsoft Word-based internal checklists; Nudge with a K for client follow-up ([68:38]).

7. Growth, Culture, and Giving Back

• Growth by Segmentation: 15 months ago: 2 advisors; now: 7. Capacity strategic planning incorporates “labor efficiency ratios” (aim for a 3:1 revenue to compensation ratio; [73:08]–[75:33]).
• Culture Fit:
  • Hiring prioritized for attitude and fit over technical skills.
  • Difficult but valuable lessons in letting go of non-fit staff; advice from peers and consultants was crucial ([77:14]).
• Firm Mission:
  • 10% of profits donated to charity.
  • Clients invited to engage in philanthropy; annual events connect clients to nonprofits ([81:32]).

Notable Quotes and Memorable Moments

On Proactive Referral-Seeding

“We make sure that we plant the seed that most families we work with do refer to us within the first few weeks of getting to know us.”
— David Stevens ([04:51])

On the Importance of Text Introductions

“The email being...has not been my experience as far as the response rate...Text has been overwhelmingly...they always respond on texts.”
— David Stevens ([52:01])

On Segmentation by Advisor Skill

“It's essentially based by talent...It allows us to specialize. Like when you think about surgeons who just do knee surgeries...it’s a better overall client experience.”
— David Stevens ([23:13])

On Training and SOPs

“I actually did the exact same thing every time…down to tonality, down to do, say this, don't do this. I mean, very, very detailed.”
— David Stevens ([32:30])

On Raising Fees

“We have raised fees for those clients by having one‑on‑one conversations. I didn’t believe in just sending out a blanket email telling everyone, ‘Hey, your fees are going up.’”
— David Stevens ([58:19])

On Building With Purpose

"Success, as I mentioned earlier, is how many people are better off because you lived…we give away 10% of our profit away to nonprofits right now to charities."
— David Stevens ([87:34])

Timestamps for Key Segments

• Referral Foundations and Coaching ([04:51]–[07:48])
• Emerging Client Service Model ([12:12]–[14:44])
• Advisor Segmentation and Compensation ([21:49]–[28:42])
• Training SOPs and Culture ([30:27]–[38:14])
• Bringing up Referrals in Client Meetings ([39:10], [42:49], [44:27])
• Fee Structure and Implementation ([57:31]–[59:58])
• Firm Growth and Team Planning ([73:08]–[76:11])
• Philanthropy and Defining Success ([81:32], [87:34])

Final Reflections

David Stevens’ approach to referrals is rooted in making introductions feel organic and normal, not salesy or pressured. By systematizing this process, aligning his advisory team’s roles to their strengths, and innovating on service models (both for clients and advisors), he’s been able to scale rapidly in both revenue and impact—all while maintaining a meaningful commitment to culture and philanthropy. His story is a template for advisors seeking to grow by nurturing relationships, both inside and outside the firm.

For additional resources and to connect with the guest, see the episode page at Nerd's Eye View: www.kitces.com/463