Referrals, Referrals, Referrals

12 years ago

Something I think a lot of marketers don't think of is to ask for referrals from people who they didn't sell services to as well.

When I first got into sales years ago (selling home improvements) I was always trained to replace each sale with a new lead by asking for referrals. Then I started asking for referrals from people I didnt sell and often found that they were more happy to to give me referrals than the people who did buy from me!

I've been using that strategy ever since and it works wonders. Especially when you've devoted time with people and have came off as truly sincere, you'll find that prospects you just couldn't close will often be very likely to give you referrals if you ask because they feel like they owe you something.

I've found this to be more common when they explicitly know that you're a small business owner and not just a marketing rep. I always try to make sure they know we're peers.

They won't do it on their own though, OP is right, you have to ask!

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AndrewCavanagh

12 years ago

Originally Posted by bob ross

Something I think a lot of marketers don't think of is to ask for referrals from people who they didn't sell services to as well.

This may be one of the most powerful strategies of all of them.

Some important points:

# A business owner who is referred to you from another business owner he knows is often the easiest prospect to convert into a paying client.

# If you go out of your way to take the time to get to know business owners and their business then even if they don't hire you they'll usually want to help you in some way or reciprocate for the time and advice you've given them.

So it actually makes them feel good if you give them a chance to refer some of the business owners they know to you.

# When you ask for referrals don't give people the whole world to choose from.

"Who do you know?" is just a crazy question no one can really answer if put on the spot.

One question you could learn to ask is "where do you keep the phone numbers of the people you know?"

You can go straight to their phone and address book and look through the people with them one by one and see who might benefit from talking to you.

This can help you go from just one, two or three referrals to 5, 10, 20+...from just one person.

Kindest regards,
Andrew Cavanagh

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rushindo

12 years ago

Originally Posted by AndrewCavanagh

One question you could learn to ask is "where do you keep the phone numbers of the people you know?"

You can go straight to their phone and address book and look through the people with them one by one and see who might benefit from talking to you.

Have you actually done this before? Seems like a very personal question. And I definitely would not want someone going through my phone with me. Just curious if this is just an idea or if you have actually done it.

Brandon

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bobmcalister

12 years ago

damn Bob ...dont you ever paint? I have watched your hair grow over the years, and know you paint on the tv. lol

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Jason Kanigan

12 years ago

Bob moved from Florida to New York too, it appears. You know he was in the army, stationed in Alaska, and really enjoyed shouting for many years? That was Before The Painting.

True true.

Now here's some more truth: how you ask for referrals. You get to know typical problems that the person you're asking has in their field. Then you ask them, "Is there anyone else in your circle who's likely to be experiencing these same problems?"

Just asking "Can you refer me to anyone?" isn't good enough. Everyone will draw a blank. But if you narrow it down to people they know who are probably having the same problem you solved for them...

-> they'll think of someone

-> you'll have a much easier time selling to the referral.

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RobbieT

12 years ago

Originally Posted by kaniganj

Bob moved from Florida to New York too, it appears. You know he was in the army, stationed in Alaska, and really enjoyed shouting for many years? That was Before The Painting.

True true.

Now here's some more truth: how you ask for referrals. You get to know typical problems that the person you're asking has in their field. Then you ask them, "Is there anyone else in your circle who's likely to be experiencing these same problems?"

Just asking "Can you refer me to anyone?" isn't good enough. Everyone will draw a blank. But if you narrow it down to people they know who are probably having the same problem you solved for them...

-> they'll think of someone

-> you'll have a much easier time selling to the referral.

Great thread guys. Yep if ALL businesses asked their clients for referrals there would be a lot less frustrated sales people and business would flow much more smoothly.

Bob, your reminder to ask for referrals from those that don't buy is a good reminder as we often forget that one.

Take good care of those that you love.

Robbie T

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Seantrepreneur

12 years ago

Great point. The best feeling is when you get someone calling in and saying that Joe Smith told me to call you because he thought you could help. Trust me it will make you smile inside!

Definitely don't be afraid to flat out ask clients for referrals. My motto is you'll never know what they'll say if you don't ask. The worst they can say is "no, I want to keep you to myself!" haha. I've actually gotten that one before.

Sean

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racso316

12 years ago

Damn right, ALWAYS ask for referrals. Even better give an incentive when asking for them. Even much better, offer this same idea and strategy and upsell it to a business owners since most don't ask for referrals anyways. And watch their business grow.

Have a referral system in place. Most people like to have an "in" so they will tell their friends and colleagues,"hey if you go to my marketing guy and mention my name he'll hook you up and give you X for free". Give away a premium both to the referral and they referrer, so they both feel appreciated

As bob ross says, ask for referrals for prospects you don't close and refer a competitor of yours (for a cut/percentage) if you know that prospect is not coming back to you. I t also works the other way around, your competitors can refer prospects to you if they know they won't close the sale. You will have to educate them though, that they will be making some money and profit from a dead lead they won't be doing anything with anyways.

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Mike Perry

12 years ago

Originally Posted by JaySG

I also do offline internet marketing consulting to local businesses. And in my experience many consultants underestimate the power of simply asking for referrals.

If you have happy clients, ask them proactively every time you can talk to them. Fact is, if they are happy with your results, they would be more than happy helping a friend and selling the idea of your SEO services for you.

That's how I'm growing my business right now, through referrals. It's a very simple sale if you compare that to cold calling, direct mail and other form of marketing.

So, ask for referrals every single time, happy clients more than happy to recommend you would sell for you.

Don't underestimate my advice, go and do it and thank yourself later.

Jay

Way to go! I am a huge believer in referrals. Best form of marketing you can receive. Make sure you reward your clients if they refer you a new paying client.

Business is like a friendship, do what you can to make them feel important.
You will receive referrals.

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MaxwellB

12 years ago

The only problem with referrals is you the flow is not predictable. 1 client may give you 1 1 month and not give another for another 4 months. Then again another client might talk you up all the time and give referrals every month.

I don't personally do this but I've heard some sales guys say to include it in the initial agreement BEFORE you close the sale that if they are happy they will introduce you to 3 new people.

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Preeti

12 years ago

Another thing to keep in mind about referrals is to show appreciation to your client if they give you a referral who becomes your client.

Whether it's a monetary award, a bottle of wine or just a simple hand-written thank you card, this will set you apart from any other business professional your client works with and they'll be happy to send more referrals your way

Regardless of who you are, people love being appreciated!

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flowbee77

12 years ago

Originally Posted by Preeti

Another thing to keep in mind about referrals is to show appreciation to your client if they give you a referral who becomes your client.

Whether it's a monetary award, a bottle of wine or just a simple hand-written thank you card, this will set you apart from any other business professional your client works with and they'll be happy to send more referrals your way

Regardless of who you are, people love being appreciated!

I agree. It's in our nature to want to tell others about something great (a business, a movie, a song, a service etc.)

Eddie

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HarrieztPotter

12 years ago

sorry if my question out of topic thread, I want to ask you how the trick is how to get referrals fast? because it helps me if you please share the info to me, because I have an online business get a referral (get member), so all will be my practice in my business, thanks before

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jonnnyd23

12 years ago

You guys have some great tips about referrals. I never thought of asking for referrals from prospects that you don't close. I will be putting this in to practice next week .

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SiteSmarty

12 years ago

Most of my web design business comes from referrals. When I built houses I had a lot of referrals. I give the person that's referring someone cash, a gift certificate or something like that.

I bought one of my clients an iPhone and 2 year subscription for sending a client my way. He's being referring clients a lot more since then.

It never hurts to show your appreciation with something people wouldn't normally get.

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RoryF

12 years ago

do you think you could tell the client up front that I will give you 10% off your monthly bill for one clients 25% off for 2 and 40% of for 3. Or will that get them suspicious about profit margins?

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Matt121

12 years ago

Originally Posted by RoryF

do you think you could tell the client up front that I will give you 10% off your monthly bill for one clients 25% off for 2 and 40% of for 3. Or will that get them suspicious about profit margins?

I'd get suspicious if I were to receive this type of message. Call me skeptical but I need to know if the company can provide me with a quality product or service first before agreeing to such terms.

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Referrals, Referrals, Referrals

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