I was recently asked this question for an upcoming column in SOLD magazine.
Are there times or types of sales where referral prospecting is not worth it?
Here’s my answer.
Yes there are. Are you surprised I said that? There are times when businesspeople think they’re giving you a referral and it’s not. That’s when the referral isn’t the value you think it is. What do I mean? Say a customer or salesman tells you, “You should call John Doe. He would be a great prospect for you.” You hear, “Great. I have a referral!” No, you don’t. What you have is a name of someone. That’s it. Here’s what a great referral sounds like. “You should call John at Company XYZ. He would be a great prospect for you because he told me he is looking for (what you sell.) I know he has an issue that your products can solve. Here’s his number, but I’m going to call him first to let you know that I told you to call him. I’ll tell him that he should speak with you because you can solve (his problem). Now do you see why some referral prospecting isn’t worth it? Now you also know how to ask for and give great referrals!