TOP FIVE TIPS FOR GENERATING REFERRALS

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1.   “I’m expanding my business, and need your help.  Who do you know who...”

This is a KEY phrase in soliciting a referral.  And it is deceptively powerful because it is open-ended.  Contrast this with “Do you know anyone at XYZ Corporation?”  In that question, you’ll get either a yes, or a no.  Period.  What you really want is for that person to actually spend a little bit of time thinking about it.   “Who do you know that needs help in building a referral marketing program?”

2.  To get referrals, give referrals. 

There is nothing quite like leading by example.  Show people how to refer by demonstrating it yourself.  Serving your friends, customers, and referral partners with a stream of helpful and useful referrals sets you up as the “go to” person when help is needed.  Some of that will come to you directly.  Do you know someone who...?  Yes, I do!  I can help you with that.  Be sure that you’re telling the truth when you answer yes!!  If not, refer and make sure each party is clear on where the referral came from and what it is about. 

3.  Giving someone a referral is very different from providing a contact name.

“You should call Jane Smith.   She’s looking for someone to help with her taxes.  Feel free to use my name.”  This isn’t a referral, it’s simply passing on a contact name.  While it may help to have your name mentioned, it will be no where near as effective as having you pick up the phone, call Jane Smith and tell her about the person you are referring. 

4.  Don’t expect colleagues with similar credentials and experience to give you referrals. 

They are in the same business as you!   Maybe you might get some of their overflow, but don’t bank on it.  Build referral networks with people in complimentary businesses, or who have the same target market but sell a different product or service than you.  Spend time building a referral network where your changes of results are highest!  Your competitors are not the best source!

5.  Earn the right to ask for a referral.

A referral is a personal thing.   You can’t expect someone to refer you until they have had some experience with you.  They need to understand what you do, how you do it, and what value you bring.   You need to connect with them, build a relationship, and earn the right to be introduced to their circle of influence.  What this really means is don’t ask too soon!  Get to know them and learn what THEY need – then provide them with a strong referral first.

by Lisa D. Dennis

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