Tweet

Why I Hate Asking For Referrals

Written by: Laura Posey

Article Overview: I just read an article in Entrepreneur Magazine by one of the most respected marketing folks in the industry. Normally, I really like John Jantsch’s work but I have to disagree with him this time. John suggests that you should ask every customer for referrals to their friends. I think that is one of the worst mistakes a salesperson can make.

Why I Hate Asking For Referrals

just read an article in Entrepreneur Magazine by one of the most respected marketing folks in the industry. Normally, I really like John Jantsch’s work but I have to disagree with him this time. John suggests that you should ask every customer for referrals to their friends. I think that is one of the worst mistakes a salesperson can make.

Here’s why…

When a person buys something from you, an exchange takes place. You give them goods or services and, in return, they give you an amount of money they feel is equal to the value of what you have them. It’s an even trade of value.

If you then turn around and ask for a referral, you are asking for more than you have earned. You are basically telling the client, “Hey, I know you have more to give me in exchange for nothing from me. Give me your relationships!”

Is it any wonder that for ethical salespeople asking for referrals feels icky?

To be fair, John suggests giving something, such as a discount or coupon, to your client in exchange for the referral. This amounts to a referral fee and, while that works for some people, it makes many feel like they are selling out their friends for a few shekels.

Instead, I suggest that you give something to the client FIRST. Overdeliver on your promises, give away some free product or even give service that is beyond what they expect. You can refer them to a friend who has free information or simply find an online coupon to share with them (like the P.F. Chang’s coupon in the Notes From The Elephants this week).

When you do that, you create an unequal relationship that your customer will willingly even back out by giving you either a) more of their business or b) referrals. The client will feel great about doing it and they won’t feel like they are selling out their friends.

Make a start on it this week by sharing something of value with your customers (yes, you can steal the coupon from this newsletter!). With just a small amount of effort on your part, you’ll see the referrals start rolling in.

Related Articles
  Ok - It's Called Enterprise 2.0
  Stop Begging for Referrals
  Getting Referrals
  “Reaping Rewards From An Effective Referral System”
  Did You Get Any Referrals Today?

Article Tags: marketing, motivation, sales, sales tips, small business



Related Forum Posts
Re: How do you get your clients? - I think staying away from gathering clients strictly online when first starting out is probably a good idea. Your first few clients could maybe be people you know, or know through somebody that may require some of your services. Another good way of gaining new clientel is offering your first few clients completely free service in exchange for placing your business card or promotional material in their business if you're doing b2b sales. Referrals are the lifeblood of many small businesses.
Re: How do you get your clients? - [quote="brata":2qa58hl5]I think staying away from gathering clients strictly online when first starting out is probably a good idea. Your first few clients could maybe be people you know, or know through somebody that may require some of your services. Another good way of gaining new clientel is offering your first few clients completely free service in exchange for placing your business card or promotional material in their business if you're doing b2b sales. Referrals are the lifeblood of many small businesses.[/quote:2qa58hl5] Ive been in business for a few years and my best way to get clients is door to door so far. However as my marketing budget grows I have stopped door to door business to business sales and shifted to mailers, billboards, radio, and just a tiny bit online.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

SEO Gurus, Software and Ebooks

When the Going Gets Tough, the Tough Log On

How to Sell to the Price Driven Customer

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.