How to Ask for a New Contact

In Monday's post, "Better Than Cold Calling" I went through some of the basic ideas about Referral Selling, based upon a conversation I recently had with Joanne Black, author of No More Cold Calling. She gave me a simple, five step process for asking for a personal referral. It's a lot easier that people think -- certainly much easier that making the ten or so cold calls required to get a similar result. Here it is:

1. Position the meeting. Tell your Referral Source that you are building your business through referrals and would like their help. Make it perfectly clear that this is NOT a sales call.
2. Position your self and your firm. Describe clearly the business results that you deliver to your clients. If the Referral Source is an active client, remind the client of the positive impact you've had on the client's business. Translate what you offer into the business results your clients will achieve.
3. Describe your ideal client. Describe the type of person who typically needs your services. Then ask whom the Referral Source knows who fits that description. Be specific. Give some sample job titles. Define your niche and position yourself as the expert. Be specific.
4. Ask for the referral. Ask your Referral Source to make the introduction, either by phone, in person or by e-mail. This is important! You are not asking for a reference but an active referral.
5. Follow-up religiously. Make sure you provide a thank you/reminder. And keep your Referral Source posted on your progress. It not only signals that you appreciate their help, but helps build a web of contacts -- and more referrals.

Several commenters on Monday's post defended cold calling and questioned whether referral selling is sufficient to build a business. Well, Joanne Black assures me that there are plenty of businesses that are built entirely on Referral Selling as their primary lead generation technique. As for myself, I haven't made a cold call in years. I exclusively use Referral Selling to get new clients, which is why I know it works.

By the way, the key to making Referral Selling work is starting with the right people. I'll tell you exactly who to ask in a future post.