What’s Holding You Back From Getting More Referrals?

I’ve got some groundbreaking news for you. If you don’t ask for referrals, you’ll never get any.

Have you ever seen the guys walking down the street with some unimaginably beautiful girl and sat there thinking “Wow. This guy is seriously punching above his weight…” Guess how that happened? He asked.

There’s really nothing to lose when asking for a referral. If you’re concerned it might damage the relationship, it’s likely you haven’t set the stage and built sufficient rapport and it’s this which has made it a problem in the first place. This means that asking for referrals is not the issue, but rather your technique is. Here are three solid strategies for getting more referrals by building the process into your sales strategy.

1. The 20 Names Technique

This one really is an oldie-but-a-goodie and has been earning insurance salespeople hundreds of thousands of dollars in referrals for many years now. Adjust the script as necessary for your industry and, to start the strategy, take out a blank piece of paper and write on it the numbers 1 to 20.

“Say, Mr. Prospect, I’m glad you see the value in life insurance. It’s super important. You know, I build my business not by cold calling people but by asking my smart clients who they might know that I may also be able to help. I’ve got some paperwork to do quickly, so here’s a bit of paper. Just fill in as many names as you like. [If you see them procrastinating] Oh, just pick some people from your cell phone book and, by the way if you do know anyone, there’s a referral fee in it for you for each one that signs up.”

2. The Sale is Secondary Technique

This is another classic strategy that works as a kind of pre-emptive approach to asking for referrals. The strategy should be used before the sales pitch and then capitalized on after the pitch is complete. It also serves to alleviate some of the pressure that may be felt by the prospect if they’re concerned about the hard sell.

“You know Mr. Prospect getting the sale today is really a secondary thing for me. I built my business on referrals from people I meet with to get me put in touch with other people they think I may be able to help. Let me show you what I offer, why it’s valuable and, if it’s not for you, that’s no problem and you can let me know anyone that you think may be able to benefit.”

3. The Vendor Referral Strategy

This is another awesome referral strategy that’s even caught me by surprise a number of times, working especially well in business to business sales. One of the key areas of resistance when it comes to referrals is that your prospects are worried about breaking trust with people by giving their contact details to a salesperson. If you sense reluctance from your prospect, try something like the following:

“You know, I understand if you don’t want to share contact information with some of your friends or customers, but what about some of the other companies you do business with? As you’re a paying customer of theirs, I’m sure they wouldn’t mind you referring them to me, especially as I know you’re happy with the job I’ve done in helping you with your own solution. If it helps, I can actually think of one or two of the vendors I do business with that I think you can help, too.”

When the time comes for you to call your new referral, open a conversation letting them know that you’ve just been referred to them by one of their biggest customers. This dissolves the whole ‘friend or foe’ potential opener and gets you off to a strong start.

The fact is, if you got on the phone right now and asked 20 of your customers for referrals in an affable way that was thought-out with a little planning, you’d book enough appointments to keep you busy for two weeks.

That being said, asking for referrals is an essential part of building a successful business. While it may seem daunting at first, there is nothing to lose and potentially much to gain from reaching out to existing clients for recommendations. If done correctly, asking for referrals can lead to significant growth and success. By using techniques like the 20 Names Technique, the Sale is Secondary Technique, and the Vendor Referral Strategy, you can build a solid referral strategy into your sales process and reap the benefits of increased business opportunities. So, don’t be afraid to ask for referrals and start building your network today!