Part II - Why You Should Never Ask For Referrals
In Part I - you might want to click here to refresh your memory- I made the case for why your should never ask a client for referrals.
In that article I agreed with a few positions supported by most ‘referral gurus:’
Here’s where I agree with most business gurus. I agree that referrals are the lifeblood of any business; without them, you’re sunk. I also agree that you need a system for generating referrals; preferably one that doesn’t result in the dismal outcomes suggested in my bullet points above. Finally, I agree that your best clients -the ones who’d gladly recommend you based on their experience with you and your services- are the very best candidates for generating referrals.
But I split ranks with them over methodology
Asking your best client for a referral is the absolute worst idea I’ve ever heard. It places your client relationship at needless risk, it makes you appear desperate for business, and it simply doesn’t work.
OK, Barry - what does?
I hinted at the secret to getting clients to refer business to you in this post a few weeks back about how Newtonian physics could predict when a client would refer business to you.
Let’s review it here:
And here’s where it gets interesting. Think about giving. Assume that giving to your clients (something memorable and with inherent value) is the force of your finger pushing on a stone (your client). What will your client do?
That’s right. She’ll push back. But if your initial push is a valuable gift, what do you think the reaction of your client will be. It’s foolproof. She’ll feel compelled to give back. Giving back is the equal and opposite reaction that Newton refers to in his third law.
In business, giving is always reciprocated by giving back. You can’t escape the phenomenon. Give to your clients enough and they give back.
In the article above, I also said:
That’s also when your clients will begin referring business to you. She’ll begin telling others about your gift, your value, and your relationship with her when she reaches the point of recognition. When will she get there? If she’s not there, it’s because you haven’t given enough.
I know you’re probably looking for a magic formula. Well, there isn’t one. But this is as close as I can get to a formula for generating referrals on a predictable basis:
G2 + T = R.
When G2 = the number of times you gift your client with concern, value, and service; when T = the foundation of trust that exists between you and your client; and when those two quantities are combined, you’ll know your client will have reached the point of recognition I mentioned earlier and will begin telling everyone they know about you.
This is the secret of obtaining a steady stream of referrals: Giving real value to clients must come before your expectation of return. If you’re not getting referrals, it could be because you’re not giving your clients what they truly need.
On my other site, ProCaseStudies.com, I make the case for reducing risk by interviewing your best clients and crafting a case study that can be leveraged in many ways. This is an example of how you can quickly become irresistible to clients.
When you approach your client with an offer to increase their exposure (and not to directly request a referral), their reaction will be positive and inviting. A far cry from their reaction to your five blank business cards and a pen.
Putting It Into Action
Expounding platitudes is one thing, putting it into practice is another. Here are some suggestion for getting your referral rate up via the principle of giving to your clients.
- Get clear on your value. Crystallize the ways you provide value for your clients. What are the problems you help them solve? What are your solutions? How are they structured? Before you can approach your clients with your value proposition, you’ve got to be clear on it first.
- Create a giving plan. Plan how you will give to your clients over the next three months. What can you give? Something that illustrates your value proposition: Create a small eBook, a packaged series of articles, a service that’s low risk and low cost. Plan your trip before you get in the car.
- Plan your approach. Know the benefits your clients will experience before you approach them with your ideas. Clients will silently ask: WIIFM - ‘What’s in it for me?’ Make sure you kill that objection before they have a chance to ask.
- Give. As the Nike ad famously put it: Just Do It. You’ll be amazed at the reception you’ll get.
The Law of Reciprocity
Remember, giving something of value from the heart always promotes similar reciprocation. If you give to clients, you can’t help but receive something back; over time, clients will repay your consistent giving with referrals from people just like them.
So get our there and give and let me know how it goes.
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“Verrry Intersting!”
Here’s how it played out for me.
I’ve been working with a client for 2 years. Last year she referred to of her clients to me.
Then recently when I ran a special offer (she’s on my list) she sent THREE referrals. Two became clients!!!
COOL!
Lyle
The Unsticking Coach(TM)