According to conventional sales wisdom, the best sources of sales leads are usually the people who are already buying from you, but the truth of the matter is, few salesmen ask for referrals. Those that do ask, do so in such a manner that it may become a burden to their client with whom they lodged the request. Asking for referrals usually ends up producing nothing, in fact, the occasional good referral received from a client or friend is often a surprise. 

 

Sales trainers have always taught that when you “do a good job” for a client, referrals will result . . . NOT TRUE. Most requests for referrals to prospects come as an afterthought when the salesman is going out the door. It’s not surprising that nothing results from this passing request. Instead, you should allow your client to have time to think about your request by posing it as a query, “I would appreciate it if you would think about my product and service . . . and about anyone you know who might benefit from them. At some point in the future, after you have had a sufficient time to evaluate my company and me, I’d like to be able to ask you for referrals.” In this manner, your client has time to think about this and is more prone to make the effort to give you some quality referrals.

 

Another approach is to do some homework. Identify other companies in the area with whom your client would have contact through business organizations or supplier relationships. This can be done by being observant; note what trucks are making deliveries, check the visitor’s register in the lobby, check the rosters of local trade or business organizations and any other means that comes to mind. If you can, determine who the decision-makers are in those companies, then ask your client if he/she knows them. If they do, then ask for an introduction or referral, if they don’t, then ask them for a contact name in that company. 

 

By being the source of the data, you don’t place a burden on your client. You make it easier for them to make referrals when you suggest the companies you are interested in chasing. As you become personally familiar with your client you will know which organizations they belong to, what trade associations they participate in and other companies with similar profiles. All of this data may be mined for prospects you may research and then ask to be referred to or connected with.

 

Since the flow of leads from referrals can be sporadic, enterprising salespersons will also use the services of a sales outsourcing company to develop and qualify sales leads. When a lead is developed, existing clients may be asked if they know the company and contacts within and if so, a referral may be requested.