The Lost Art of Reference Selling

I love this article from sales trainer Skip Miller - it reminds us of one of the hidden benefits of reference, or referral, selling.

People buy from people they like and they trust. If this statement is true, what are you doing during your prospecting efforts to make sure you turn those cold calls into warm calls so you get a better response rate?

I find it fascinating that sales people are all over Facebook, LinkedIn, Twitter and all the other social media tools, but have a tough time asking for a referral.

We constantly hear from sales people that reference selling is a great way to prospect and overcome cold call rejection, but ask a sales person to ask their customers for a referral, and they will look at you like you are asking them to request "the biggest favor in the world" from their best and most important friend.

Think like a customer. Customers, especially executives, love giving worthwhile referrals out, since, if the person who they refer you to actually buys and uses what you are selling, they probably:

Got rid of a problem
Reduced their cost
Increased their revenue
Which is the only reason they would buy from you.

Say you ask a good customer, Barney, for a referral. He gives you a referral, say Fred. You help Fred solve a problem, make money, or whatever. He's happy. He calls Barney up and says thanks. OK, so Barney knows that Fred owes him one. This 'owes me one mentality' has been around for a long time. The Romans used to call this a chit, which is like a favor marker, good for one favor.

Executives are always looking to collect chits, so you, by asking for a referral, are really helping your customer collect chits.

Bottom line, ask for referrals and help turn that cold calling chore into a networking juggernaut.

A recognized authority on the psychology of sales performance, Skip Miller has helped countless companies, already at the height of success in their respective fields, achieve an even greater level of sales productivity and success. Learn more at www.m3learning.com