Referral Myths

Dispelling Referral Myths

Myth #1: I have to spend all my time Prospecting

Of course, everyone must find new clients and we call that prospecting. But if by prospecting you
mean cold calling, purchasing leads, spending thousands in mass direct mail and other cold
“prospecting” methods, you’re wrong. “Prospecting” in this sense is what the 85% of also-rans are
doing. Mega-producers prospect through their clients and referred prospects, generating several
times the number of qualified leads the normal salesperson generates in a fraction of the time–and
at a fraction of the cost of normal “prospecting” methods. The difference between you and the
superstar is the superstar has learned that “prospecting” isn’t their job, selling is–and they have
learned the “secrets” of high volume sales–generating a large number of highly qualified prospects
through referrals.

Myth #2: Getting Referrals is Easy

Getting a large number of high quality referrals from clients isn’t at all easy. If it were, every
salesperson would be getting them. Why do only the top salespeople get large numbers of referrals?
Because they have learned the “secrets” of developing a relationship with their clients that generate
the huge number of referrals.

Myth #3: All You Have to do is Ask

Referral generation is a PROCESS that starts the second you meet a prospect, not a single ACT after
the sale has been completed. Simply asking for referrals is a surefire way to referral failure.

Myth #4: If You do a Good Job, Clients Will Give Referrals

Everyday thousands of salespeople complete sales that went smoothly. Their customer is happy and
satisfied. But they don’t get referrals. Why? Because clients must have been properly prepared
before hand to give referrals. Clients don’t give referrals just because you ask. Referrals are earned
as part of your contract with the client.

Myth #5: Clients Will Either Give Referrals or Not, There Isn’t Anything I Can Do to Change That

Almost every client you have will give a large number of high quality referrals IF you have properly
prepared them and you have met your agreed upon obligations for earning the referrals.

Myth #6: Most Clients Don’t Know Anyone Who Needs or Wants My Product or Service

Almost all of your clients know others who want and need your product or service–even if they don’t
know who those people are. But you can guarantee getting a large number of high quality referrals
from you clients if you know what questions to ask.

Myth #7: Most “Referrals” are a Waste of Time

True, for the average salesperson. Most salespeople don’t get high quality referrals because they
haven’t learned how. Oh, sure, they get a couple of names here and there and some of them work
out, but by and large the referrals are weak and most of the time they prove to have been a waste
of time. But that doesn’t happen to the mega-producers. Most of their referrals buy. Why? They
know how to get their clients to give referrals to people who meet their ideal client profile.

Myth #8: Mega-producers are Just Lucky

The big producers always seem to get the good clients that know other people who need their
service. False. The superstars get the same clients you do–they just know how to develop the
relationship with the client that produces huge numbers of quality referrals. They aren’t lucky,
they’re smart. The difference between you and them is they know what you don’t.

Myth #9: You Have to Have a Large Client Base to Sell by Referral

You can certainly grow your income faster if you are an experienced salesperson with a large
database of current and past clients. But even new salespeople can quickly become referral-based
salespeople by learning how to develop a large number of high quality referrals from their few
existing clients. Referral-based selling doesn’t require a large base of clients, it requires knowing
how to generate a large number of quality referrals from each client.