Cultivate Your Referral Sources

Problem: One of the measures of a successful salesperson is the number of referrals they get from past customers and others. Many salespeople do not get enough referrals to keep them from having to make cold calls and do prospecting on a regular basis. Often salespeople do not get repeat referrals because they fail to water their referral tree.

Analysis: People who refer business to you need to be recognized for their efforts. After all, they have gone out of their way to help you become more successful. There is a time-tested principle that states, “an unrecognized behavior does not get repeated.” Sometimes salespeople don’t even know where their referrals come from.

Solution: To cultivate your referral sources, here are some ideas:

  •  Call the referral source and thank them.
  •  Send a thank you note or a gift.
  •  Keep them informed of your progress (as long as it is not confidential) until you close the sale or close the file.
  •  Ask your new client (the person who was referred to you) to call the referring source and thank them for the introduction.
  •  Make a point to refer business back if you can.
  •  Meet with the referring source and create a mutually beneficial plan to help each other. Not all referral relationships are balanced, so think of other ways to make it a win-win.
  •  Hold social events that include your best referral sources and prospects.
  •  Keep referral sources on your newsletter or other client communication list.

Why should you do all this? Unless you love cold calling, it’s the best way to grow your business.