As a home based business builder and a budding entrepreneur, one thing you can never have enough of is new leads or referrals. Here are 5 reasons to always ask for referrals as taken from the book Referrals Now! by Bill Cates.
- The chances of you making a sale to a referral is much higher than to a stranger (even if a very qualified lead). In one study of over 5,000 qualified prospects, those obtained by cold calling or other lead generation techniques converted to sales 11% of the time while those obtained by referrals converted to sales over 40% of the time!
- The cost per lead of a referral is ZERO which obviously compares very well against other mechanisms for establishing qualified leads.
- There are some people who are great at making a sale but never learn how to convert these customers into sources of referrals – these sales people are leaving LOTS OF MONEY on the table.
- One of the biggest obstacles to effective selling is tension between the seller and the buyer. When a prospect comes to you through a referral, tension is usually very low, if it exists at all.
- Never be apologetic in asking for a referral. The more confident you are in asking, the more comfortable the person you are asking will feel…and the more likely she or he will give you the referrals you seek.
Remember, whenever it comes to selling a product its always a numbers game, the more people you can tell about your business the better. Even if a person isn’t interested in joining or buying from you, it never hurts to ask if they know anyone who might be interested in what you have to share.