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Referrals Cash

^top Should You Ask For Referrals?


An opening question if you want to ask for referrals will begin something like this: "Who do you know that could benefit from my services?"


This question is eerily familiar if you hang out with hungry salespeople eager to add to their customer list. If your client is satisfied, shouldn't they be happy to recommend your services? So should you take the opportunity to ask and risk his ire? The answer may surprise you.


We've all been taught to ask for referrals. Admit it, we all love a warm referral, definitely much beter than a cold calling prospect who slams down the phone. But are you skating on thin ice with this asking referrals approach?


Based on companies' surveys conducted over the years by comparing referrals which were asked for against referrals that were gladly given by clients, the result was amazing skewed in one direction.


Referrals which were being begged for turned out to be poor clients. Of course, not all are undesirable, some do stay around and become life long customers. However, most simply weren't the best type of clients to deal with. On the other hand, unsolicited referrals are usually very receptive to your sales pitch because of an inherent trust. 

You have to realize that not all referrals are created equal. If you want the best referrals, you have to stop asking for them, period. There are a couple of things that can go wrong when you ask for a referral.

First, if the person you're asking doesn't feel 100% comfortable, it will put them in an awkward position. They will typically respond with no referrals or poor referrals.

No one will jeopardize their social network by referring someone that they aren't excited about.

Now that you know asking for referrals is not the brightest of ideas, what is the next step?


ReferralsCash suggests that you focus your efforts on distinguishing yourself from others in your field. Develop a peer-to-peer relationship with your existing client so that he/she views you as a valuable resource and advisor, instead of a pest, er, salesman.


The moment that you ask or even utter the word "referral", your client will realize that you are just like any other salesperson. From a level playing field where you provide counsel and services for which your client was happily paying, you disrupt the equilibrium by asking for something more, ie. referrals. This imbalance places unnecessary pressure on your client.


In case you are mistaken, I am not stopping you from referral marketing. Referrals are necessary for your business but since you can't ask for them without risking damage to clients'  relationships, then what is a business owner to do? To answer this question, you need to ask yourself another question. What have you done in the past to get unsolicited referrals?


Chances are that the way you gotten your best referrals was that you gave others a reason to refer you. You provided exceptional service and the absolute right solution. Under such circumstances, a stranger becomes a fan.


It all starts with choosing clients who you can best serve and then doing a phenomenal job. It doesn't end there however. Follow-through and after sales service (and that could be months or years) is equally important. Your level of commitment to your client will be reciprocated.


When your client pass on a referral, again, the process doesn't end. You have two great opportunities for getting more referrals.

1. Show sincere appreciation and gratitude for all referrals given. Your gratitude will inspire them to continue to help you.

2. Educate your referral source on why this was or wasn't a good referral for you. Tell it like it is, if a referral is bad, let your client know about it. Otherwise, you are destined to get more of the same which is a waste of everyone's time and energy.

Of course, you need to be tactful and communicate this information nicely, else the client may think twice about passing your more referrrals. Likewise, if your client gives you a great referral, you want to acknowledge to your referral source why the referral is a good one for you. The lesson is that education will lead to more and higher quality referrals in the long run.