Sales Minute

Myth: The best way to get referrals is to ask for them after the sale.

Fact: The most effective way to get business and referrals is to give business and referrals.

Obviously at some point you will have to ask for a referral, but it has to be at the right time. Most people (not you, of course) ask for the referral much too early in the process—usually before their client sees any value in the service. The company hasn’t delivered anything yet. Additionally, asking for a referral too soon can put the client in an awkward position.

You may get a referral or two this way or by using a referral incentive program, but your clients will never totally endorse your company unless you have delivered the service promised and have proven your value to them.

The Rule of Reciprocation states: "We as human beings try to repay in kind what another person has provided us." It is a universal law that when we give we will always end up receiving, usually more abundantly than we gave.

If you want more referrals for your business, you need to give your clients and strategic partners more referrals and business. Give without expectation of getting anything back. Ask questions about their businesses rather than talk about your company. Give referrals without keeping score.

Why beg for referrals when you can actually earn them just by helping your clients grow their businesses?