A sales lead, or a referral, is when you ask a client, a prospect (or even an acquaintance or friend) for the name and contact information of someone who might have an interest, need or want for your product or service. An introduction to the individual makes the sales lead or referral even more powerful.

But first how do you get sales leads? The answer is simple - ASK! You already know that you have the right to ask. If you don’t ask, you don’t get. If you ask, you have a 50-50 chance of getting one, and if you don’t, there is nothing lost as you cannot loose something you never had.

Getting sales leads are simple. Make it a habit to ask everyone and you will no longer be making cold calls, but working strictly on a referral basis. Ask more to sell more! Don’t miss out on this tremendous sales lead source!

The other option is word of mouth, where you provide an outstanding service and other talks about you. However, if you do not ask for testimonial letters, or for a sales lead or referral, the chances of getting one out of the blue are slim.

You are given a sales lead because you have earned the other person’s trust and they think that you can actually help someone else. Do you believe in yourself, in helping others and do you trust yourself? If you don’t, nobody else will either.

A sales lead, or referral, allows you to introduce yourself through that person’s name, creating commonality and an immediate level of trust.

There are several reasons why you should ask for a sales lead / referral.

When you call a sales lead and encounter their voice mail, be sure to mention the name of the person who provided their name. The sales lead tends to respond faster and at a much higher rate compared to voice mails you leave when making cold calls.

A sales lead/referral has affinity with you and that begins to create an element of trust. And quite frankly, most feel a sense of duty or obligation to those who referred their name. They feel compelled to call back just in case they are asked. Either way, it works for you.

Sales leads that come in the form of referrals, tend to listen and engage you more closely when you finally reach them. Typically, they don’t see you as “just another sales rep.” A tentative bond is created in your mutual acquaintance. The sales lead referral is curious and wonders why his or her name was passed on. In simple terms, this gives you a significant edge.

Sales leads in the form of referrals tend to buy at a higher rate compared to cold calls and other lead sources. There are three reasons for this: First, people usually refer others who are in similar situations. They tend to have similar problems, concerns, needs, wants and opportunities. This usually means there is a strong application for your product or services. In short, these sort of sales leads are more qualified.

Second, as mentioned above, sales leads in the form of referrals tend to listen more closely to your message. They do not ‘dismiss’ you as quickly or as lightly as they do other sales reps.

And third, the referral’s trust is typically higher with you because he or she can “check you out.” You have an instant credibility source. Every buyer is looking for someone they can trust and depend upon. Having evidence of success with a known acquaintance makes buying easier for the sales lead / referral and easier for you.

The Bottom Line: Sales Leads are based on trust, and where there is trust, your selling cycle time is reduced. The time it takes the sales lead or referral to buy is usually much less than any other lead source. What this really means is less hassle and more sales.

As stated earlier, you can ask anyone for a sales lead or a referral. In the Business to Business world, that usually means clients and prospects.

Clients are the best sales lead / referral source because they know you and they know your products or services. Never miss a chance to ask a happy client for a sales lead / referral, and a testimonial letter while you are at it.

You can also ask prospects. Suppose you call a prospect only to discover that your product or service doesn’t match a need. You can still ask for a sales lead / referral at the end of your call.

What’s the worst that can happen? They say “no.” No big deal. Move on. But sometimes, just sometimes, they provide you with a name. And that’s a great start.

Ask for referrals at the end of your visit or contact. AFTER you have completed your primary objective.

Referrals seem easy enough but there is a bit finesse required. Here’s how NOT to ask for a referral:
“Jim, do you know of anyone who might be interested in my services?”

This is NOT the recommended method because it is far too easy for your customer or prospect to say, “Ahh…no.” The ‘no’ that they give you is often reflexive in nature; an automatic response to a closed ended question. In other words, they respond negatively out of habit. You could be missing tons of opportunities.

The BETTER way to ask for the sales lead or referral is this:

“Sandy, can you give me a name or two of someone you know who might be interested in these types of products?”

The difference is subtle but significant. By asking for a “name”, your client has to THINK about names. It is not quite as easy to give you a dismissive “no.” Usually, they tend to do a mental scan of friends and associates.

This scanning pause helps reduce the automatic, reflexive ‘no’ response. Of course, they can and sometimes will, say “no.” But by asking for a name you increase your odds and improve the chance for success. It is as simple as the ABC, 123 Sales Results System found in my book Up Your Bottom Line.

Oh, one other point – sales leads and referrals demonstrate good behavior. Make sure that those giving you sales leads and/or referrals also get rewarded. Remember, any behavior that gets recognized or rewarded gets repeated. Ask about our referral reward program.

Tags: how to sell, sales tips, sales strategies, goal setting worksheet