How do I generate referrals?

It’s fair to say that I’ve been around the sales block a few times, or maybe three, but who’s counting? In my 15 year career ‘selling’ at the coal-face, I’ve seen just about every sales approach in the book ? some effective and others not so. And if there is a ‘so called’ bag of sales tricks, my bag is fatter than most.

Having been a fervent student of ‘selling’ for most of my adult life, one thing is for sure, nothing excites me more at the front end of the sales process than a referral. Hot, warm or cold, I don’t mind, so long as there’s a need or desire I’m qualified to fulfill. And if someone goes to the trouble of recommending me to another, I don’t take that lightly ? I celebrate it!

The thing to understand about ‘referrals’ is they don’t just manifest by themselves. Someone has to initiate the referral and have a good reason. For many customers they simply do not feel the need or inclination to refer you, nor is there a compelling enough reason to do so.

One of the best measures of the quality of your work is your customer’s willingness to buy again and refer their friends. This should be your ultimate outcome with each sale. One way to generate referrals is to simply do a great job and go beyond the mandatory.

Like or loath him, Gordon Ramsay rates a restaurant by a distinguishing trait, “Will the customer f-ing come back?!” Despite Gordon’s foul-mouthed antics, I tend to agree with him. But inspiring the customer to come back is one thing ? asking them to refer you business is quite another. Asking for a referral from a happy customer can sometimes take the shine off their opinion of you, because it usually demonstrates you are interested in other customers, which can come across as a tad transactional, so handle with care.

In my personal experience, asking for referrals is not the most effective way to get them, there is a better way ? give referrals to others. If you want more referrals start giving more to those around you. Create a circle of influence with like-minded businesses and handball them opportunities. From my experience this is the best way to generate referrals.

Helping others is not only powerful in itself? it does come back to you many times over. Maybe not instantly, but I can guarantee the person you referred the customer to will be thinking about you and should the opportunity present itself this person will sell you.

Actions to generate quality referrals:

• Develop strategic alliances with synergistic companies.
• Only refer people to companies you believe in.
• Reward programs can be effective, but sometimes considered contrived, I prefer to make rewards unique to my referrer which means taking a genuine interest in them.
• Learn more about the companies around you, so you can more effectively refer them business.
• At the very least thank your referrer (you will be surprised at how often this doesn’t happen).

Many of the most valuable relationships I have in business are with companies that I refer business to and who refer business to me. In some instances, I have been in a meeting with a potential customer and been thinking more about how I can help and plug in someone that I know in business over my own business interests.

Develop strategies to be a valuable connector and referrer to those around and you and you will be amazed at the amount of business that comes back to you.

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Trent Leyshan is the founder and CEO of BOOM Sales! a leading sales training and sales development specialist. He is also the creator of The NAKED Salesman, BOOMOLOGY! RetroService, and the Empathy Selling Process.