Beyond Referrals Read online

  Says Alan Weiss in his book Million Dollar Referrals, “You’re a peer of the buyer. Peers don’t blatantly sell to one another. They recommend and suggest courses of action that can legitimately assist their peers. (Trust is the fervent belief that the other person has your sincere best interest in mind.)”

  Internal-Sort Versus External-Sort

  When it comes to buying something, sometimes we “internal-sort” the process, meaning we look inside ourselves for what feels right. We do our own research and come up with our own conclusions. Sometimes, we “external-sort” the process, meaning we want the help and advice of an expert. We seek that advice; we count on it. Depending on what we are buying, we may find ourselves sorting differently for different things.

  Listen to what your prospects say and to what they ask. If you can see they are internally sorting, you say things like, “Here’s something you might want to consider” and “What do you think the best solution would be for you?” If they are externally sorting, you want to be bolder with your recommendations (as stated above).

  Are you making recommendations or suggestions to your prospects (or clients) about how to proceed to the next step? Or are you waiting for them to move the process forward? You can often move the process forward by making recommendations or suggestions!

  CONFIRMING THE BUSINESS

  Michael Vickers, author of Becoming Preferred: How to Outsell Your Competition, lays out his philosophy of “closing the sale.” He writes, “If you have done your homework, asked all the right questions, taken the time to identify their needs, and gained a good understanding of their issues and key challenges, then the close is simply the next natural step in the process. If you have done it right, your prospective client will feel this way also.

  “The most effective close that I know is simply this: after you have recapped, asked great questions and done your homework, and worked out several solutions that make sense, say, ‘Based on all of the information you have given me and based on our discussions, these three solutions make the most sense to me. Which one makes the most sense to you?’”

  Unfortunately, most salespeople and small business owners either don’t seem to have much of a process or don’t truly take care of the process. I know that I have been guilty of this over the years. When I have a clearly laid-out process—and follow it—I’m always more successful in confirming sales.

  ACTION STEP

  Get clear on your words, and practice until you feel extremely confident saying those words. Practice asking for the business!

  APPENDIX 1

  WHAT’S YOUR REFERRAL CONFIDENCE QUOTIENT?

  Generating referrals is not rocket science. It really boils down to confidence. In the absence of confidence are fear, doubt, and inaction. Take this simple Referral Confidence Assessment to see where you stand on the confidence meter. Then, take this list and turn it into an action plan!

  Rank your level of activity, confidence, or skill in each of the items below with a scale of:

  1 = Not doing much here. Lack confidence

  2 = Doing okay, but could boost level of activity and confidence.

  3 = Doing quite well here. Could probably teach others.

  How did you score?

  APPENDIX 2

  PROFESSIONALS NEVER STOP PRACTICING

  Just before I was about to deliver a keynote presentation for a large audience in Minneapolis, a small business owner came up to me and told me he was asking for referrals but was not having much success. I asked him to role-play with me for a minute. His request was choppy and wordy and lacked confidence. I asked him how many times he’d actually practiced asking for referrals. His answer was, “I guess that’s something I need to do.” Meaning he may never have practiced. Ever!

  When I was a professional musician (yes, I toured the country as a drummer in a rock-and-roll band), I practiced two hours a day on my own and another two hours a day with the band, and then I played five to six hours, six nights per week.

  Baseball players have off-season practice routines and spring training, and they take batting and fielding practice before every game. When do professional musicians and professional athletes stop practicing? When they retire! And some continue to practice even after retirement.

  How often do you practice different aspects of your processes? Most people tend to wing it when they ask for referrals, call their new referral prospects, and run their sales appointments. This is a bad habit that surely leads to reduced sales effectiveness.

  When you ask for referrals, make your sales calls, and run your sales appointments, the first time you say certain things or ask certain questions should not be in front of a prospect. When you wing it and try new ideas without a little practice, you tend to bumble and confuse things, use too many words to get to the point, and just plain lack confidence.

  I run a Referral Champions Boot Camp twice a year. Attending one of my recent boot camps were two guys who were partners in a financial advisory practice. Per my recommendation, after the boot camp they set aside time to practice some of the things I taught, such as promoting referrals, asking for referrals, dealing with referral objections, and turning referrals into introductions. Once they gained some confidence, they took it to a higher level. They started running “pop quizzes” with each other. One would pop into the other’s office and sit down and say, “Ask me for referrals.” They did this at random times. The net result was that all these strategies became second nature to them. They truly mastered the referral process.

  PRACTICE BREEDS CONFIDENCE

  The process of asking for referrals, getting introductions, gaining appointments, and making sales is not rocket science. It’s all about confidence. In the absence of confidence are fear, doubt, and certainly inaction. I think it was Jim Flowers who said, “Amateurs practice until they get it right. Professionals practice until they can’t get it wrong!”

  SOME IDEAS FOR MORE EFFECTIVE PRACTICE

  Here are some real-life ideas I’ve gleaned from some of my clients over the last few years.

  1. One professional uses a smartphone tripod on which he places his smartphone to record himself role-playing his request for referrals. He said he’s tried it with a colleague, and he’s even done this a few times by himself in the conference room. That would be interesting to watch. Does he get up and run to the other side of the table to play each role?

  2. A sales manager in Michigan has instituted biweekly “Pro Group” sessions. He says, “The concept is that pros practice. The key element of our execution is the practice effect. We video the role plays and review them during the session.”

  3. Another sales manager in Oklahoma runs quarterly full-day Referral Boot Camps. “Our reps showcase their process, and we do a ton of role play.”

  4. A sales manager in Maryland held a Referral Role-Play Tournament. This created a lot of practice and role-play competition. This resulted in a huge confidence boost for everyone, which translated into results.

  5. A corporate client of mine—who uses one of our comprehensive video-training programs—holds referral practice sessions on a weekly basis. His sales team gathers together for about an hour each week to brainstorm on referrals. They share best practices, celebrate successes, work on questions and challenges, and almost always practice some aspect of the referral process. He told me that they usually video some of the role plays and that this recording can be extremely valuable. He said, “We had one guy who, every time he got nervous, would stick his finger in his ear. He had no idea he did this until he saw himself on video. Needless to say, this cured him of that bad habit.”

  My experience has taught me that it usually takes at least five to seven practice times before someone feels totally comfortable and effective asking for referrals and implementing any other part of the sales process. Unless you’re the rare exception, you are probably not creating enough practice opportunities. Whether it’s with referrals or anything else … Practice! Practice! Practice!

 
APPENDIX 3

  GET YOUR ASSISTANT OR STAFF INVOLVED

  The members of your staff can become involved in the referral process too. Perhaps they won’t be asking for referrals like you, but they still have a role. Your staff should know what you’re trying to accomplish with referrals and what their role is in that initiative.

  First, your staff members play a crucial role in making you and your company more referable. They play a central role in the client experience. And even if they aren’t in direct contact with clients, they are serving someone who is in direct contact. Every employee of a company contributes to the referability of that company.

  Second, many of your staff can promote referrals with prospects and clients. Whenever they hear a client give an expression of value—such as “You guys did a great job for us”—then they can say things like, “Don’t keep us a secret!” or “We’re never too busy to see if we can provide the same value to others you care about.”

  Third, depending on the relationship you have with your assistant or other staff members, you can ask them to hold you accountable for asking for referrals. If you’re a wimp when it comes to asking for referrals, tell a member of your staff, “I’m meeting with Sheri Thomas later today. She’s extremely happy with our work. Ask me later if I asked her for referrals—like I should!” Now the fear of your assistant calling you a wimp can prompt you to face the lesser fear of asking for referrals.

  SOME STAFF CAN ASK FOR REFERRALS

  Some staff members are inclined and able to ask for referrals. For instance, Elizabeth is the marketing director for a financial advisor in Phoenix. Elizabeth knows that her advisor, Robert, has incredibly satisfied clients but will never bring himself to ask for referrals. So Elizabeth does it for him. She makes sure she gets to know the clients as best as she can. After they meet with Robert, she calls the clients to make sure they’re happy. When they are, she asks for referrals and gets them.

  Meet with the members of your staff to let them know how you want to incorporate referrals into the business. Consider giving them a copy of this book so they have more context for this discussion. Then, together, figure out what they can do (and are willing to do) to make your company more referable and more proactive for referrals.

  INDEX

  Please note that index links point to page beginnings from the print edition. Locations are approximate in e-readers, and you may need to page down one or more times after clicking a link to get to the indexed material.

  Abandoned customers, 62–63

  Accelerators, 182, 183

  Accountability, 140, 231

  Action triggers, 44–45

  Actionable referrals, 83

  Added value:

  and client-service promise, 24–25

  in courtship of prospects, 154

  with free gifts, 34–35

  for orphan accounts, 62

  as purpose of appointments, 20

  in relationships with prospects, 159–160

  and trust building, 169–170

  on website landing pages, 95

  when following up with prospects, 157

  Adobe Connect, 97

  Advisor-centered approach, to asking for referrals, 45

  Advocacy (preferred status level), 12

  Affinity-group events, 111

  Agendas, for online appointments, 148

  Alliances, 110–111

  Andree, Kristin, 72–76

  Andree Media & Consulting, 72

  The Answer (John Assaraf & Murray Smith), 8

  Appointments:

  cancellations, 150–151

  foreshadowing in, 222

  as goal of phone calls, 132

  one-legged, 191

  online, 148–149

  phone calls, 146–147

  for prospecting calls, 139–140

  scheduling, 132, 156, 188

  types of, 114

  Appreciation marketing, 21–22

  Appreciation Marketing (Tommy Wyatt & Curtis Lewsey), 21

  The Art of Closing the Sale (Brian Tracy), 216

  Art of the Rainmaker (Bill Whitley), 117–118, 182–183, 204

  Articles, on others’ websites, 128

  Asking for business, 221–224

  and confirming the sale, 224

  foreshadowing of, 222

  by making recommendations, 222–224

  Asking for referrals, 39–65

  action triggers for referrals, 44–45

  assumptions about, 43–44

  from centers of influence, 56–58

  choosing clients to ask, 47–48

  and client surveys, 63–64

  and curiosity mindset, 40–41

  from friends and family, 51–52

  for hard-to-reach prospects, 64–65

  inciting action in referral sources, 58–61

  and LinkedIn connections, 71

  methods of, 45–47

  from orphan accounts, 62–63

  with red folder system, 54–55

  and referral mindset, 48–49

  and referral objections, 53–54

  from reluctant sources, 55–56

  safety of, 10

  staff involvement in, 231–232

  timing of requests, 50–51

  VIPS Method™, 41–43

  and word of mouth, 61

  Asking questions, 177–183

  about how clients refer you, 31

  about referral prospects, 116

  closed_vs. open-end questions, 180–182

  here/there questions, 182–183

  and information needed for recommendations, 178–179

  and pain vs. pleasure as motivators, 179–180

  permission for, 178

  starting conversations by, 122–123

  for trust building, 168–169

  Assaraf, John, 8

  Assistants, 231

  Assumptions:

  about asking for referrals, 43–44

  about introductions, 82–83

  and asking questions, 123

  and trust building, 172–173

  Attitude, about business events, 107–108

  Awareness:

  of importance of referrals, xi-xii

  of referral opportunities, 41, 44

  Bain & Company, 6

  Ball-park approach, for fee discussions, 209–210

  Becoming Preferred (Michael Vickers), 11–12, 168, 224

  Belief, 15, 83, 198–199

  Benefits:

  of the benefits, 179, 203–205

  core, 120–121

  Birthday cards, sending, 26

  bitly.com, 73, 93

  Blogs, 69–70, 73, 128

  Body of evidence, presenting your, 124

  Bogan, Stephanie, 36

  Borrowed trust, 2–3, 12–14, 80, 167

  Boyan, Lee, 180–181, 204

  Boys and Girls Clubs, 106

  Brainstorming, 42, 43, 164, 190

  Branding, 32–33

  Brooks, Milton, 144

  Brush-offs (from prospects), 140–142

  Bully Free at Work (Valerie Cade), 50

  Business:

  asking for (see Asking for business)

  describing your, 31

  transitioning from rapport-building to, 136–137

  in voice-mails for prospects, 142

  Business events, 107–109

  Business friendships, 25–26, 58, 194

  Business model, fit of clients with, 195

  Busy, messages about being, 22–23

  Buying services, teaching prospects about, 211–212

  Buzz, creating, 33–34

  Cade, Valerie, 50

  Caller ID, 80

  Call-mail-call invitation process, 104

  Calls to action, 73

  Cancellations, appointment, 150–151

  Case studies, 124

  CASs (Client Attraction Stories), 118, 205–208

  Cates, Bill, 8, 41, 55, 199, 227

  Celebration events, 25, 105–106


  Centers of influence (COIs), 56–58

  Charity events, 107–109

  Chevy-Buick-Cadillac method, for fee discussions, 210

  Choices, limiting, 212–213

  Chunking, referral list, 61

  Clarification, questions for, 122

  Clarity:

  in value discussions, 171–172

  of your intentions, 14–15, 189

  Client appreciation events, 25, 38

  Client Attraction Conversation method, 117–119

  Client Attraction Stories (CASs), 118, 205–208

  Client review meetings, 24–25, 30–31

  Client speak, 201

  Client surveys, 63–64, 125–126

  Client-centered approach, to asking for referrals, 45–47

  Client-service promise, 23–25

  Closed-end questions, 180–182

  Closing ratio, 3

  Closing the sale, 5, 165, 216, 224

  Coaching sessions, free, 155

  COIs (centers of influence), 56–58

  Cold research, 116–117

  Collaboration with referral sources:

  after introductions, 87–88

  on introductions, 81, 83, 85–87, 90–92

  in VIPS Method™, 42, 190

  Commitment(s):

  and client-service promise, 24

  from prospects (see Asking for business)

  to referral process, 10

  Committees, decision-making by, 191

  Communication:

  about prospecting process, 19, 187

  after introductions, 87–88

  assumptions in, 173

  styles of, 173–174

  Community service events, 106–107, 155

  Confidence:

  asking for referrals with, 48–49

  at business events, 108

  in dealing with “no,” 220

  in fee discussions, 210

  and practice, 229

  Referral Confidence Assessment, 225–227

  in referral mindset, 11

  in value discussions, 171–172