Why I NEVER Ask for Referrals (but I get them anyway) Part 1 of 2

This is Part 1 of a two part article. Have you EVER had the good fortune to earn a referral from a client or center-of-influence?  If so, you know how desirable and valuable they are for your business or practice. A referral to a qualified prospect who truly appreciates the benefits you offer - received from a respected individual - is likely to produce:             1.  a shorter, quicker path to a new client,              2.  easier access to the referral, and             3.  a well-deserved boost to your confidence and self-esteem As a Duct Tape Marketing coach, I specialize in working with people who offer a valuable, problem-solving expertise or service.  Unlike businesses that are marketing a tangible product, marketing an intangible, personally rendered service is quite different. When talking with a service provider or professional, I like to ask, "What is the BEST way for YOU to get clients?".  Invariably, they tell me: "Referrals" or "Word-of-Mouth".  I then ask, "If that's the best way for you to get clients, are you getting ENOUGH of them to meet your numbers?"  Their answer, in most cases, is "No, not really". My next question is, "If a referral is your BEST way to get a client . . . and you're NOT GETTING ENOUGH of them to make you happy, do you know WHY that is so and HOW to correct the situation?"  Again, the answers I usually hear are, "Not really" and "No". Personally, I find it difficult to accept that an excellent method (referrals) for generating a business necessity (clients / revenues) would be so good and yet so problematic for so many.  As a professional practitioner myself in a former life, I knew first-hand how important it is to generate an adequate number of referrals to people who look like the kind of people who, in the past, appreciated the value I offered, desired the benefits I produced and were willing to pay me a fee was both appropriate for the value they received and the profit I wanted. Early on in my career, I knew in my heart that there had to be a better way to generate a consistent and adequate flow of referrals other than to keep asking, "Who do you know who would be interested in the services I offer?". And, if there was, I was determined to find it. As I began to study how people in service fields generated referrals, I discovered that most people who said 'referrals' really meant 'word-of-mouth'.  There's a BIG difference! In fact, I learned that people who aren't getting referrals typically aren't 'asking' for them. This factor alone - waiting passively like a fisherman in a boat vs. a proactive skin diver who goes over the side with a spear gun in hand - more than any other, is the 'dirty little secret' behind the symptom of 'not enough referrals'.  Prospecting truly is a contact sport! I then ask, "So tell me, if it's so good when you get referrals . . . why aren't you asking for them more often than you do?"  Their answers -- their challenges to more referrals -- fall into three (3) basic categories.  "My Ego is on the line" Many people don't ask for referrals because they don't feel comfortable asking for them. "I feel like I'm standing naked in front of someone" is the way one woman described how she felt when she would ask for referrals from someone. Technically, she's right.  When you ask for a referral, you are putting your ego on the line - especially if you're providing a personally rendered business service or professional expertise.  The risk of personal rejection is always present. "People aren't psychic" Most people aren't psychic.  So asking, "Who do you know who could use my services?" is more likely to produce a 'deer-in-the-headlights' look than a referral. Unless someone tells you they have a problem in some area of their life, how would you know if  they'd care to know about someone who offers a service that addresses that kind of problem?  You wouldn't! So asking, "Who do you know . . ." is very often problematic. "It's not easy to make judgments of people" Are you a 'problem-solver'?  Do you help people eliminate a problem in their life?   Are their problems ever . . . embarrassing to have?  If so, then judging someone as being 'in need' of your problem-solving service is going to be difficult for most people.  Why?  Because it requires someone to make a subjective judgment that someone they may know is somehow 'not right'.   For example, one of my clients is a financial advisor.  If she asks, "Do you know someone who could use a financial planner?" she's effectively asking, "Who do you know who's messed up financially?"  Even if you know or suspect someone you know is 'not right' financially, it's extremely difficult to make that judgment of them.  Even if you're right, the risk of recrimination by the person you could refer someone to ("Who are YOU to presume that I need financial help?!") often makes people reluctant to give you a referral to someone who may very well be an excellent and truly qualified prospect for your problem-solving service and expertise. RECAP:  Part 1 of 2 In this part 1 of my 2 part article, let's recap quickly: <ol> <li>Referrals are good to get . . . they offer an efficient and effective way to new clients</li> <li>'Referrals' are mentioned but what people really mean is 'word-of-mouth'</li> <li>Most people are not actively asking for referrals . . . they're passively waiting for them to happen</li> <li>Despite their significant value, most people are clueless about how to get more of them from other people</li> <li>There are three (3) main reasons why people aren't more effective at asking for referrals:</li> </ol>             a.  the risk of personal rejection is perceived to be                 relatively high             b.  people don't always know someone who may want the                 benefits you offer             c.  people don't like to make judgments about other people                 being 'not right' In <a href="why-i-never-ask-for-referrals-but-i-get-them-anyway-part-2-of-2">Part 2</a> of this article, I introduce you to a proven process I developed that addresses these obstacles to generating a consistent and adequate flow of people who are likely to value your services, desire your benefits and pay you a fair price to enjoy them. Until then . . . be well! 2008-11-16T05:11:12Z

2008-11-16T16:46:30Z

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why-i-never-ask-for-referrals-but-i-get-them-anyway-part-1-of-2

2008-11-16T16:46:25Z

Whether you’re a solopreneur or CEO, you probably like to receive referrals. But asking people for referrals can be problematic. This article explains why and provides an alternative approach that is more comfortable and effective for most businessowners.

Why I NEVER Ask for Referrals (but I get them anyway) Part 1 of 2

2009-02-24T09:47:12Z