Every serious salesperson knows the power of referrals. They are the greatest drivers of sales. Unfortunately, many salespeople do not even ask for them.

A referral is the best lead generation method at the disposal of every salesperson.

For me, I always ask my prospects, whether they have bought my product or not, to give me a recommendation and 3 referrals. I have a book that I give to them for this purpose. The recommendation is a token of good faith in my product and the referrals become my next target in the sales funnel.

In normal circumstances, no prospect will refuse to give you referrals. They can only refuse if you argue with them during the sales process. This is why we said that you should never disagree with the prospect openly.

When I get a meeting with the person I have been referred to, I always give them signed evidence of the quality of my products and services in the recommendation and referral book.

They read the recommendations from various influential clients and this gives them confidence. Even before they listen to what I have to say, the recommendation acts as testimonials. This is very effective.

After reading the recommendation, they also get a chance to see that I came to them through a written referral from a person they know. This further gives me leverage in the sales process.

Through the recommendations and referrals, I already have around 70% leverage even before I speak. This reduces the amount of effort I have to put in to convince my prospects that I am a genuine seller.

The greatest fear of every prospect is that the seller might not be genuine. They fear that their products might be counterfeits. Many buyers see salespeople as only being interested in their money and not their welfare.

This situation is a product of having numerous fraudsters in the market today. These people are master conmen. They dupe their prospects and before they know it, they have lost their hard- earned money.

Due to the above-said situation, the greatest success factor of any salesperson is proving that they are genuine. This is the trust- building process in the sales process.

If you cannot build trust with the prospect, they will treat you like any other con out there. In sales, you are guilty until proven innocent. Therefore, your first responsibility is to prove your innocence to the prospect. Let their hearts rest easy. This will help them make an informed decision that most probably will give you the sale.

The good news is that recommendations and referrals can do the job. They build trust in the heart of the prospect. They also set

you apart from the pack. You are now held in high esteem by your prospect.

Even if you do not ask for recommendations (Which you should do), always ask for referrals. As we said, it is the greatest lead generation tactic available to all salespeople.

There are 3 types of referrals. They guarantee leverage in the sales process.

1. A referral from a senior to their junior

This has awesome power. It almost guarantees results.

When you get a senior officer to refer you to their junior, chances are very high that you will make the sale. This is because of the following reasons:

·     Juniors hold their seniors in high esteem and thus, they do not wish to disappoint them.

·     A referral from a senior to a junior is like an express command to purchase the product.

·     Any association with the senior already lifts your standard in the eyes of the junior. They hold you in high esteem just as they do to their seniors.

As I sell my best-selling book, The DNA of High Achievers, to schools, I usually employ this tactic. I can assure you that it works.

I will approach a senior officer in the education sector and ask them to recommend and refer me to the principals of schools who are their juniors. When they do, I know that the sale is 70% made even before I meet the prospect.

I found out that I made more than 90% of the sales whose leads I got through this kind of referral. The remaining 10% had genuine reasons why they did not buy my products. They went out of their way to prove that they had the will to buy but the circumstances were not favorable. It is like they are apologizing for not buying from me. This is why we said that this kind of referral is like an express command to the junior officer to buy your product.

You can use this tactic in your day-to-day sales. You will observe that your conversion rates will skyrocket immediately. This works well mostly in B2B sales.

Follow the following process:

·     Identify a senior officer in your target market.

·     Approach them, become their friends, and convince them that your product is the best in the market.

·     Ask them to give you referrals.

Please note that this is easy said than done. You need to be very professional to convince these senior officers and make them feel that they need to give you referrals.

You can even get into a business deal with them. Promise to give them a certain percentage of the sales revenue generated as commission. In most cases, they will never object. After all, who doesn‟t like to have more money, especially when you do not have to work for it?.

2. A referral from a family member to another

This is also very effective. It works well in B2C sales.

One family member can refer you to other several family members. The result is the same; you will get leverage even before you say a word to the prospect.

3. Referrals between friends

Friends also have a considerable influence over each other. When a friend recommends another to buy a product, they feel ashamed to disappoint them. This becomes leverage to you as a salesperson.

Why are referrals this effective?

Referrals are extremely important because of the following reasons:

1. Human beings are social beings

All of us are social beings; we live for others and others live for us. We love to have friends, to please them and that makes us feel accepted. It is this need for acceptance in all human beings that make referrals effective.

When one person refers you to another, it is like they are recommending the other person as a potential buyer. They are telling them that they believe that they can purchase that product.

The prospect will go out of their way to prove that notion right. They will purchase from you for their friend‟s sake.

2. Human beings are emotional beings

We make decisions emotionally, not logically. Even if a decision seems logical, it has been influenced by deep emotional factors. These factors act as an invisible hand that makes us do what we do.

This is why rapport is important. It makes the purchasing even more emotional. When the buying is emotional, logic is suspended. This is how people buy even things that they do not need. They buy things at a higher price. This is logically irrational but very justified emotionally.

When a friend or family refers you to another of their kind, the buying now becomes emotional. It is not about you but the one who referred you to them. Their love for them will make them purchase your product even in the most unlikely circumstances.

3. Mostly, you will be referred to people who need what you are selling

This is also a very important aspect of referrals. When you ask a person to give you referrals, they will first think of people who would need your product. They will not just give you names anonymously.

This ensures that there is demand for what you are selling. Remember, demand is created when the potential buyer has the will and the ability to purchase your product.

In this case, the client will not refer you to people who cannot afford the product or those who do not need the product. They refer you to people who can create demand for what you are selling in both aspects.

If you can meet such prospects who have both the need and the ability to purchase what you are selling, what remains is to close the deal. Remember, the referral has already been created the trust. This is gold to you as a salesperson.

In all you do, make sure you ask for referrals. They will complement what is lacking in your sales efforts. If you are closing 20% of all deals, your closing rate will double or even triple through this one tactic.

If you are a good salesperson, people will never deny you referrals. Even those who do not buy your product will be willing

to refer you to people who can purchase them. After all, it costs them nothing.

Humans beings love to help people who seem good to them. Just show genuine interest in the welfare of the prospect and they will help you with the much needed referals.