Tool Gate · How it works
How the Referral System Health Scorecard gate works
How the Referral System Health Scorecard rolls a portfolio of firms up to its weakest: a compliance override forces a firm to AD HOC when disclosure scores zero — an indefensible arrangement isn't a system — and one AD HOC firm makes the whole portfolio read RUNNING ON LUCK, whatever the points total hides.
How the gate works
This tool grades every advisor or branch's referral system across six dimensions, then rolls the portfolio up to its weakest firm. It reads 5 firms and rolls them into one verdict — the worst, never the average — and then a gate that can only make it worse.
The 5 firms
| Firm | Verdict |
|---|---|
| Established RIA | SYSTEMATIC94/100 · every dimension covered |
| Meridian Wealth | AD HOC72/100 but compliance & disclosure at zero · fatal gate |
| Lakeshore Advisors | LEAKY60/100 · thin across the board, no gate |
| Solo practice (new) | AD HOC62/100 but no ask and no COI pipeline · no-engine floor |
| Cornerstone Planning | SYSTEMATIC93/100 |
The verdict bands
Two overrides catch what a points total hides: a zero on compliance & disclosure forces AD HOC — an indefensible arrangement isn't a system — and a zero on BOTH growth dimensions (ask cadence and COI pipeline) forces AD HOC, because with no ask and no partner pipeline there is no engine at all. Either override beats the score, and one AD HOC firm makes the whole portfolio RUNNING ON LUCK.
In the worked sample it reads RUNNING ON LUCK — Two firms read SYSTEMATIC (94 and 93) and the points look healthy across the sheet — but two firms fail on override, not on score. Meridian scores 72 yet reads AD HOC because its compliance & disclosure dimension is zero; the Solo practice scores 62 yet reads AD HOC because both growth dimensions — ask cadence and COI pipeline — are zero, so there's no engine to grade. One AD HOC firm forces RUNNING ON LUCK. The one thing to fix first: Ask cadence & triggers — the weakest dimension averaged across the portfolio, and the one that (with COI pipeline) trips the no-engine floor. Build a triggered, repeatable ask first..
Common questions
Can every firm look survivable on the How the Referral System Health Scorecard gate works and the company still read RUNNING ON LUCK?
Yes. The roll-up takes the worst of 5 firms — never the average — then a worsen-only gate, the Compliance & no-engine gate, escalates when trouble clusters. In the worked sample it reads RUNNING ON LUCK because two firms read SYSTEMATIC (94 and 93) and the points look healthy across the sheet — but two firms fail on override, not on score. Meridian scores 72 yet reads AD HOC because its compliance & disclosure dimension is zero; the Solo practice scores 62 yet reads AD HOC because both growth dimensions — ask cadence and COI pipeline — are zero, so there's no engine to grade. One AD HOC firm forces RUNNING ON LUCK.
What is a worsen-only gate?
A dispositive rule that can only lower a verdict, never raise it. One fatal flaw overrides an otherwise-set of survivable lines, because a single disqualifying gap shouldn't hide behind an average of the healthy ones. The tool also names the one thing to fix first — here, "Ask cadence & triggers — the weakest dimension averaged across the portfolio, and the one that (with COI pipeline) trips the no-engine floor. Build a triggered, repeatable ask first.".
Grades a referral system from your own evidence marks — never people — and rules on no specific arrangement. Compensating referrals or using client testimonials touches the SEC Marketing Rule (Advisers Act Rule 206(4)-1); confirm any arrangement with your CCO or a qualified securities attorney. Not legal advice.
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<iframe src="https://redhub.ai/visuals/tool/referral-system-health-scorecard.html" title="How the Referral System Health Scorecard gate works — RedHub AI" width="760" height="1834" loading="lazy" style="border:0;width:100%;max-width:760px"></iframe>
<p style="font:14px/1.5 system-ui,sans-serif"><a href="https://redhub.ai/visuals/tool/referral-system-health-scorecard">How the Referral System Health Scorecard gate works</a> — by <a href="https://redhub.ai">RedHub AI</a>, the AI that tells you when to doubt it.</p>Image + link — a static picture for any blog
<a href="https://redhub.ai/visuals/tool/referral-system-health-scorecard"><img src="https://redhub.ai/visuals/tool/referral-system-health-scorecard-share.png" alt="Diagram of the Referral System Health Scorecard: firms rolled up worst-not-average, a compliance override forcing AD HOC, and the portfolio reading RUNNING ON LUCK." width="760" loading="lazy" style="max-width:100%;height:auto;border-radius:16px"></a>
<p style="font:14px/1.5 system-ui,sans-serif"><a href="https://redhub.ai">RedHub AI</a> — the AI that tells you when to doubt it.</p>
This is how Referral System Health Scorecard works. More diagrams in the Visual Field Guide.