Would you like a constant stream of qualified referrals? When you’re in sales or business development, there is nothing sweeter than having a qualified referral drop in your lap. It’s a high-five moment that unfortunately comes too infrequently for most.
What if I told you that there are some simple ways that you can cut on the referral faucet and keep them flowing non-stop? It’s a topic that I covered in a recent workshop with a client.
I want to share four of the biggest mistakes that I see salespeople make. The first three have to do with developing referral partners and the last is related to your clients or prospects. So that we are all on the same page, let me clarify what I mean by a referral partner.
A good referral partner is a relationship you have with another person who can send you a regular and consistent flow of qualified referrals. By the nature of their relationships, contacts and clients; they are able to make introductions that have a high probability of turning into closed business for you. Of course, the Law of Reciprocity applies in referral relationships and you will likely be expected to return the favor.
Mistake 1 – Wrong Fit and Focus
If you want to develop a strong referral partnership with someone who can send you ongoing referrals, you want to make sure that the fit and focus is right. There are lots of considerations when it comes to fit. Let’s look at two of the most important ones.
First, you want to personally “click” with your referral partner. Let’s face it, you are looking to build a long-term relationship, so you want it to be with someone that you like and want to work with.
Second, trust is critical when it comes to building referral relationships. Ask yourself, “Is this someone that I feel completely confident sending my most valuable contacts and clients too?” If you don’t think they will provide the level of care that you expect and require, then there is a problem.
When it comes to focus, it’s important that you both can consistently help each other. So the focus of your business should be with the same type of client. This means that if you deal with HR Directors of a certain size and sophistication as your primary contact person, it’s important that your referral partner does as well. Nothing ends a referral relationship faster than finding out that the people that you have your best connections with are not the ones that will help your referral partner, or vice versa.
Mistake 2 – Lack of an Effective Strategy
One of the biggest mistakes that potential referral partners make with each other is that they have no discernible strategy for helping each other. Here’s the typical scenario. You meet someone at a networking event that you seem to have a natural connection with. After a brief conversation, you realize that there could be some synergy in your businesses and there may be ways that you can help each other. So you decide to meet for coffee to discuss possibilities. In the conversation, you determine that you would like to help each other out when the opportunity arises.
At the end of the meeting, you shake hands and both leave hopeful that the referrals will start rolling in. Unfortunately, this “wishful thinking” approach doesn’t lead to anything concrete and you both end up feeling disappointed that nothing concrete ever really develops.
Mistake 3 – Poor Execution & Accountability
Poor execution is often related to not having an effective strategy (Mistake 2). If you don’t have a strategy, you certainly can’t execute it. But, maybe you actually have a strategy with your referral partner. In this case, the pitfall is that things just aren’t getting done. Typically in a bad referral relationship, the parties involved simply are not fully committed to helping each other. Sure, they give it lip service, but their actions don’t back up their talk.
Communication of expectations, time frames and how to stay accountable to each other needs to be something that both parties are committed to. Without this, you’re just two people with good intentions and poor results.
Mistake 4 – Asking Your Prospects & Clients
Many salespeople make what I consider the most heinous of mistakes – they actually ASK their prospects and clients for referrals. Many are even told by their managers to do so on every appointment.
I have written about this before and you can read a more detailed explanation in this article, The Worst Sales Advice Ever, but the bottom-line is that when you ask your prospects and clients for referrals you immediately put yourself in Vendorville. Instead of being seen as a trusted resource, advisor or partner; you are seen as the charlatan that you are – just a typical salesperson who is only out to make the sale.
Now that’s not to say that you shouldn’t get most of your referrals from your existing clients. They are, without a doubt, in the best position to be raving fans and sing you praises. But you are far better off earning their long-term trust and referrals by being indispensable rather than by being another pushy salesperson asking for handouts.
So now that you know what MISTAKES to avoid, what do you do? I’ll share a proven 5-Step Process in the next newsletter.
