Beyond Referrals Read online

  Asking for the Opportunity to Talk About Business

  In these cases, it is especially important to broach the subject diplomatically.

  Laura, I’ve been a little reluctant to bring this up, because I don’t want to do anything that might jeopardize our relationship. With that said, the way you’ve been describing your situation makes me think I could probably be a good resource for you. Would you be open to setting aside some time to explore this further?

  Laura, there’s something I’ve been wanting to run by your for a while, but I’ve been a little reluctant because I’m not sure how you’d react.

  (Oh? What’s that?)

  Well, my company is doing a lot of great work for companies like yours. I’m wondering if you might allow me to present myself as a possible resource for you and your firm.

  Asking for Referrals

  As I’ve stated several times already, before you ask anyone for referrals, you have to make sure they see your value. This is every bit as true for friends and family. Some friends and family will give you referrals because they like you and want to help you. But most won’t do that until they get a good sense of your value proposition.

  Marty, I think you may know some people who might benefit greatly from my work. And I know the only way you’d be open to introducing me is if you have a clear understanding of what it is that I do and how people benefit from working with me. Would you be open to setting aside some time where I could explain our value proposition? And if you feel good about it, then possibly open a few doors for me?

  … So Marty, does this give you a clear picture of what we do and how we do it?

  (It sure does!)

  Good. Would you agree that, for the right people, the work I do is pretty important?

  (Absolutely!)

  Nice! I’m wondering if we might do a little brainstorming to see if we can identify some folks who you think should be aware of my value. I have a few ideas I’d like to suggest. Then, perhaps, you’d feel comfortable putting in a good word for me. Are you open to this?

  ARE REFERRAL OBJECTIONS STOPPING YOU?

  At our Referral Boot Camps, we spend a lot of time dealing with referral objections. Many folks don’t ask for referrals because they lack the confidence in dealing with the many ways clients express their reluctance to have a referral conversation. In the same way that asking for referrals is all about your confidence, so too is dealing with referral objections.

  The most important ingredient in gaining skill and confidence with referral objections is your willingness to explore the objections. Rather than fear or be intimidated by possible objections, realize that they’re part of the process and that your job is to understand them. (This is true with any kind of objection.)

  When you seek to understand people’s concern or reluctance, you begin to realize there is nothing to fear. Sometimes you can point out a different perspective; sometimes you can’t.

  Once you realize that there is no reason to be intimidated by clients’ concerns about talking referrals with you, then you’ll ask more often and with more confidence. This, in turn, will yield better results.

  While it’s good to have a positive expectation for referrals, you should never be surprised by objections. Don’t let them throw you. Be ready for them—ready to explore to understand. And be ready to reframe people’s thinking if they have a mistaken assumption about your referral process.

  ACTION STEP

  Brainstorm all the objections you might get when asking for referrals. Then think through how you’d explore each objection.

  Example: “I don’t give referrals.”

  “That’s fine. I know some people don’t. Tell me more. Have you had a bad experience?”

  Do this for the most prevalent objections you get, and you’ll never again fear referral objections.

  THE RED FOLDER SYSTEM

  Prepare for asking for referrals. Don’t wing it! Here’s an idea I got from Ben Rischall, a financial advisor in Minnesota.

  Get yourself a box of red file folders (one for each client you intend to ask for referrals). The red folder makes it very visible, so you don’t forget to ask when you’re on an appointment. On a weekly basis, review your upcoming appointments, create an agenda, and prepare for a possible request for referrals.

  For the clients you are meeting that week, create a “prompting list” for things like the names of people the clients have mentioned in the past; categories of people you serve the best; and memory joggers like family, friends, civic groups, target markets, and LinkedIn. (Every business will be a little different. The point is to think through this and come prepared with specific individuals and categories of people you serve well.) Doing the preparation will give you more confidence and avoid the referral objection, “I can’t think of anyone.”

  This preparation takes a little time. Ben’s wife assists him in his business, and so she helps with this. You might delegate some of this work to a sales assistant or intern.

  Ben told me, “You want to be proactive, and it helps to think ahead. It’s all about developing the prompting list.”

  Kevin Schriver is a successful financial advisor, attended one of my Referral Boot Camps, and became quite good at generating referrals. Kevin uses a green folder, much like Ben’s red one, for every one of his clients. He keeps his referral prompting lists in the folder to make sure they are always handy and to be sure not to show the same prompting list as he did in past meetings.

  He also uses this folder for tracking the referrals each client gives to him. By keeping track in this way, no referral prospects ever fall through the cracks; and each time he asks a client for referrals, he has a record of the names the client has already provided to him. Kevin staples in each folder a sheet of paper with 40 slots for referrals (he’s an optimist). He told me, “Forty referrals is a good number to receive from a client over a 10-year period.” That’s only four per year. It seems more reasonable when you break it down like that.

  Says Kevin, “Keeping the referrals in one place like this shows you care about whom they introduce you to, and it ensures you tap into the lifetime value of each client—the business you can do with them and the people they can introduce you to.”

  Kevin explains, “You can have another sheet on the inside that lists your favorite Bill Cates (referral coach) sayings, lines, phrases, and reminders; like the VIPS Method for asking for referrals.”

  YOU CAN LEAD A HORSE TO WATER, BUT …

  We often give referrals to potential referral sources in the hopes that the law of reciprocity will kick in. We are often disappointed. (Financial advisors, for instance, are often frustrated with their lack of ability to get referrals from risk-averse folks like accountants and attorneys.)

  If you have someone you’ve been sending referrals to, but nothing is coming back, try this: Schedule a meeting (maybe lunch) with the reluctant referral source to see what might be possible in the relationship. At this meeting, state the truth: “I’ve noticed that I’ve been able to provide you with some good referrals, and some of those folks have chosen to work with you. I’ve noticed that I’ve yet to receive any referrals from you. I’m wondering if you are open to discussing what’s possible in terms of us becoming reciprocal sources of new business.”

  If the source is open to this, then the ensuing conversation needs to answer these questions:

  1. What type of person is each party trying to attract—and how do you recognize that?

  2. Is each party “referable” in the other’s eyes? Does this potential alliance truly see the value in the work you do and trust you enough to give you referrals? (Very important!)

  3. How will these connections be made? How will each person like to be connected to the new prospect?

  4. How will both parties know if their expectations for the relationship are being met? What constitutes a relationship that is working? How will that be measured?

  5. How often will you and the alliance get together to update
each other on your respective businesses and the progress of your relationship?

  Sometimes this conversation gets people over their reluctance to give referrals. Sometimes you’ll discover that these people are just not the great source for referrals you thought they would be. If so, find their replacement!

  MAXIMIZE YOUR CENTERS OF INFLUENCE

  COIs are those folks who may never become clients of yours but have the ability to give you referrals. For instance, a natural COI for a financial advisor would be a CPA (accountant). A natural COI for a business consultant would be another noncompetitive business consultant. Every industry has its natural COIs.

  Here are a few tips designed to help you grow your own personal sales force:

  1. Become disciplined about doing something every week to meet new COIs or to strengthen your relationship with your current COIs. Working a few weeks in advance, schedule one meeting (or meal) per week with a potential COI or current COI. Consistent activity in this area is critical to making this strategy pay off big time.

  2. Set a goal of how many and what types of COIs you’d like to have. For example, a financial advisor wants to determine how many CPAs, attorneys, tax preparers, real estate agents, mortgage brokers, and business owners to have as part of his or her own personal sales force.

  3. What’s the best way to meet COIs? The answer is referrals from your clients and current COIs. You can meet these folks through networking events and the like, but direct referrals are always the most effective method.

  4. Never assume you are referable in your COIs’ eyes. And just because you give them referrals, doesn’t mean they’ll automatically give you referrals. In fact, giving referrals doesn’t make you referable! When they truly trust you and understand the value you bring to others, you become referable.

  5. Never assume a COI knows how to give you referrals in an effective manner. Teach COIs how you like to be connected to good prospects. If appropriate, ask them how they want you to connect prospects to them.

  6. Never assume COIs know who fits your business. Teach them. Bring your potential clients to life with anecdotes, stories, and case studies.

  7. Agree on how often the two of you should meet. For some very active referral resources, once per month might be appropriate. For moderately active referral resources, once per quarter is probably enough. Use list items 4, 5, and 6 above as part of your agenda. It’s an ever-changing conversation as your respective businesses evolve.

  8. You should also work on the business friendship, which means getting to know your COIs in ways that go beyond your core. The more you genuinely like each other, the more productive your relationship will become.

  9. Never assume a COI relationship needs to be reciprocal in terms of referrals. Many COIs will happily give you referrals because they truly value the work you do and want others to experience your value. Sometimes that’s enough. Assuming otherwise may cause you to discount the potential value of a COI. And the value you bring to your COIs can come in other forms, such as helping with their marketing plan or just being a sounding board for their ideas—personal or professional.

  If I had to distill the above items in a few words, it would be:

  1. Formalize your approach to meeting and nurturing COI relationships.

  2. Formalize the relationships themselves.

  ACTION STEP

  Make a list of all the types of businesspeople who can become your COIs. With the ones you already have relationships, work on formalizing the referral part of the relationship. Then begin a systematic approach to meeting as many COIs as you can. Set a goal for perhaps 12 COIs over the next 12 months, 1 per month.

  GETTING REFERRAL SOURCES TO TAKE ACTION

  Have you ever had a very well connected client (or COI) who had the potential to introduce you to a lot of people but just never seemed to get around to introducing you to his or her huge network? Here are three strategies that could get the person into an action mode:

  1. Target list. Create a “target list” of the people this person likely knows. Bring that list and go through the people one by one. Even if it’s a short list, this will get the brainstorming started. Sources for this list are the people that you already know the person knows. To find people that the person knows, do a Google search and see who’s mentioned along with the person, check the person’s LinkedIn profile, and look for lists of people in the person’s business association and the chamber of commerce.

  2. Social event. See if your client would be willing to host a social event, or invite people to an event hosted by you, for the purpose of introductions. This event could be just for your source and his or her contacts, or it could be an event where other clients and guests are present. But be careful. You don’t want a large event. Keep the events on the small side so you create quality connections. The larger the event, the thinner the connections. And make sure you have a follow-up plan in place to capitalize on the great connections you make.

  3. Attend an event. Many of your clients are members of different types of organizations, such as industry trade associations, community service or philanthropic groups, and clubs and affinity groups. Tell your clients you’d like to learn more about their industry, group’s work, etc., and see if they’ll allow you to tag along as a guest. You’ll be introduced to many qualified prospects.

  ACTION STEP

  Look through your client list. Who are your most connected clients? Can you identify some of the people they know to create a target list or social event for the purpose of introductions? Do the same for your potential COIs.

  How to Handle a Referral Tsunami

  Have you ever had people pull out their cell phone and start scrolling through everyone they know or opening up their contact management program right in front of you? I have! This is not a pipe dream. This happens all the time! While conducting my Referral Boot Camp follow-up coaching calls, we always begin with success stories. On one such call, a participant spoke up and said he used our VIPS Method to get 31 referrals on the spot. A second person told us she received 15 referrals at one time from a client.

  Getting this many referrals in one meeting presents a couple of challenges:

  1. Is there time available to qualify these people for your business and to learn a few important things about your new prospects (so you have a good first call or initial e-mail with them)?

  2. Will the client turn these referrals into engaged introductions (see the next section), or are you left calling people who have no idea who you are?

  Here are a few things to keep in mind when receiving five or more referrals in one sitting.

  1. Introductions are always best. If you don’t have time to qualify and learn about your prospects, schedule a follow-up phone call or meeting (could be over a meal) to complete the process in a way that gives you the maximum chance for success.

  2. Think about “chunking” the list into groups of three to five introductions at a time. Your client can send three to five e-mail introductions (make sure the client cc’s you) per day or per week until you get them all.

  3. Don’t ever feel like you can’t go back to your referral source for more information and create a better introduction. These days, the quality of the introduction is an important part of the referral process.

  “GAVE YOUR NAME OUT TO A FRIEND THE OTHER DAY”

  Have you ever had someone say something like this to you: “Gave your name out to a friend the other day” or “I’ve been telling everyone about you”? While word of mouth is good and can sometimes turn into a prospect calling you, we know that that’s not usually enough on which to grow your business. We want to be going for connections.

  Here’s a sample conversation that will help you the next time something like this comes up:

  George, I certainly appreciate your spreading the good word about the work we do. Much appreciated. I have not heard from anyone as of yet, and quite frankly, I’m not surprised. It’s not that these folks don’t value your opinion. I�
��m sure they do. I’ve just learned that people often put off making changes, and for me to be able to get them thinking in terms of new solutions, I need to find a way to reach out to them, to be appropriately proactive.

  Can you tell me whom you’ve mentioned me to lately? Maybe we can craft an approach that will feel comfortable to everyone and at least put me in a position to be a resource for these other people as I have been for you. Can we think this through?

  HOW TO GET REFERRALS FROM ORPHAN ACCOUNTS

  Lorna Riley, author of 76 Ways to Build a Straight Referral Business ASAP! (Off-the-Chart Publications), writes, “The abandoned customer can be a gold mine for anyone willing to take on new clients.” These folks are prequalified leads because they represent people who’ve already bought and have an interest in what you provide. There’s good reason to believe that these customers will be happy to talk to you again. Call and set up a time to introduce yourself and become acquainted with their current needs.

  The insurance industry calls these unassigned accounts “orphans.” If you are new to your company, orphans (or abandoned customers) can be a welcome source of decent activity—at least to get your momentum going in a positive direction. Here are three steps to bringing these relationships to the point of creating referrals for you:

  1. Reengage by bringing value. First you have to reengage them by bringing renewed value to the relationship. Be honest. Let them know that you (or your firm) are sorry you haven’t been in touch as well as you’d have hoped. Then find ways to teach them new ideas, and update them on the good things going on with your firm (in a way that they see the value to them). Think “value first, sales and referrals second.”