Most people ask for referrals the wrong way. They say something like, “If you know anyone who could use my services, please let me know.” This is not an effective way to get referrals from busy people with other things besides growing your business on their mind.
Here are some quick tips to ask more effectively:
1. Find a good time to ask the client for a referral. Best times include: when they sign a contract, when you complete a job and they like it, when they thank you, when you go above and beyond to solve a problem — and other times when you have demonstrated value and they like you.
2. Ask permission to take time to discuss referrals, so that they are focused on it. “Would you mind sitting down, either now, or at a more convenient time, maybe over coffee, to talk about who else you know who might get similar value from my services?”
3. Ask specific questions, not vague questions. If they are on a board of directors, ask who they know on the board that might need your services. If they go to a specific place of worship, ask who they know in the congregation who might need your services. And so on. In some cases, I’ve even asked straight out: “Can we go through your Rolodex?” The more specific your questions, the more likely the client is to think of someone.
4. Ask how you should follow up, and respect their wishes. They may want to make an introduction, or they might want you to send a letter.
5. Let them know what happens, and thank them either way. Going back to point #1 above, a great time to ask for a referral is after you get a referral. After all, the client has now become your advocate and has put their butt on the line for you.
Homework for you: Try the above with 5 of your best clients, today (if you don’t already practice this advice).
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Hmm, I’ll have to to think about this!
I do have one question though: What in the world is a “Rolodex?”
March 11th, 2005 at 11:30 am
offering some sort of reward to the client is a preffered method of mine. For every client they refer to me, they recieve something like a 5% commision, seems to work pretty well – and most people, when they see the pound signs, tend to be more helpful.
March 11th, 2005 at 11:37 am
I agree with cloak. We call it a “finders fee”. It can range from 5 to 20 percent depending on how much business they bring in and their status as a client. We get a lot of business this way, particularly from associated businesses who don’t/can’t offer web design. For example we have a mini display with our business cards on the front desk of a small computer repair shop!
Also, shouldn’t sitepoint be writing secular articles given it’s enormous world-wide audience?
Thanks for the tips!
March 11th, 2005 at 12:32 pm
Rolodex is the brand-name of an old-fashioned way of tracking contacts. Readers other than myself may be too young to remember when we tracked contacts with index cards and a plastic device that revolved to store them. Sigh.
March 11th, 2005 at 1:15 pm
Hey, I’m young-ish and I definitely know what a Rolodex is, and in fact, I still have one.
And I used to write school papers on a type writer.
And I’m under 30! Heh.
March 11th, 2005 at 6:26 pm
Hmmmm,
You won’t get your users attention, neither referrals this way. Better, try, before writing nonsenses.
Better try some psychology tricks…
March 11th, 2005 at 11:05 pm
Well, superuser. Who is really writing nonsens here?
March 12th, 2005 at 6:59 am
Ahh! I always wondered what those were called. (Thanks, showing my age I guess (or lack thereof)).
March 12th, 2005 at 1:00 pm
Interesting tips–I actually offer a finder’s fee already, but I can’t see myself asking to go through a clients Rolodex. That just seems to be stepping over an invisible line, to me. I guess it all depends on your relationship with the client.
March 13th, 2005 at 2:11 am
hurtdidit:
Yes, it definitely depends on your relationship with the client! I’ve asked only a couple of clients to do this, based on a VERY strong, long-term relationship.
It’s interesting: I’ve asked my longest term referral source for same, and he refused. We have a great relationship, but he knows that his Rolodex is worth a fortune and so keeps it to himself. But it didn’t hurt to ask!
Andrew
March 13th, 2005 at 10:08 am
>Also, shouldn’t sitepoint be writing secular articles
could they? YES
should they? Not necessarily
March 15th, 2005 at 9:02 pm
These same clients who offer referrals will also be very valuable in laying down tips on how to approach the prospects, what makes them “tick,” the sort of business the prospect runs and the things that he/she values in business.
I actually have one client whom I am close enough with that I would not hesitate to ask about the Rolodex — but as was already said, it depends upon the relationship. The others, no way would I ask. :) hehe
March 19th, 2005 at 11:57 am
Here’s a little script that might help you get referrals:
Mr. Customer, have you talked about what we’re doing to improve your company’s web site with any business associates?
(Of course he has; but, regardless of the answer say…)
The reason I ask is because OUR project is wrapping up and I’m looking for a new challenge. I was hoping we could help each other. I can make almost any web site better but I always love it when I also help a friend of a client to improve their business.
(With pen & paper in hand look straight into your customer’s eyes and ask…)
With this in mind, who would be the FIRST person that you suggest I talk to?
(Once you have a name don’t stop the momentum ask…)
Who would be the next?
(Once the referrals have stopped get details on each, one at a time, in order of importance; 1. correct spelling & pronunciation of company name, 2. contract person’s name & pronunciation and position in company, 3. company location and phone number)
Now that you’ve got at least one referral, if your customer is still receptive, go to the next step and start asking qualifying questions like…
Does Mr. Prospect call the shots or does he have a partner?
Have you and Mr. Prospect discussed what he thinks he needs?
Would I recognize Mr. Prospect’s main product line?
How long has Mr. Prospect been in business?
What type of competition does Mr. Prospect have?
To push a customer referral to the extreme you could say that you’re ahead of schedule today and… if he calls Mr. Prospect right now, you are available immediately for a free consultation or onsite evaluation of their web needs.
I was taught this technique years ago and used it successfully to get back to back demos when I sold pot & pans and knives door-to-door while in college. The approach works just as well today with my web design clients. The secret is to not to come across at first as if you are asking for a referral.
March 24th, 2005 at 5:31 pm
what about us insurance agents who are not allowed to offer something in return. For those of you that don’t know, that is known as rebating in the insurance industry…
April 4th, 2005 at 10:31 am
That was an excellent tip 1Click! Thanks! I always ask but never get a good response. Always something like, “I’ll call my friend and see if they need anything.” Getting a list of numbers and info is a much better way to get referrals!
April 14th, 2005 at 8:58 am
You can offer money without it being rebating. Rebating is when pay someone or offer them money to accept what you are giving them or paying them for services on your product. It is totally legal to give gift certificates, money whatever else for referalls. You cannot offer money to keep someone on the books, or to pay someone’s first month premium to get them to accept your services. I offer gift certificates to favorite places to eat but my client has to know up front that in order to get it the referral has to be legit and must purchase something from me. But you can give rewards to clients for referrals totally legal.
Fellow Ins Representative
May 3rd, 2006 at 1:49 pm
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