Ray Silverstein, the “Sales” columnist at Entrepreneur.com and president and founder of PRO: President’s Resource Organization, a network of advisory boards for small-business owners, recently published an article on “Get More Referrals by Asking“. He suggests to build asking for referrals as your daily activities and see the results. He thinks referrals as a very powerful selling tool.

It’s a fact: People would rather do business with people they know–or know of–than with strangers. When you’re introduced to a prospect through a personal recommendation, that prospect has a vastly higher comfort level than, say, a buyer you find through cold calling. After all, few things are more reassuring than a positive endorsement from someone you know and trust.

I will discuss the best ways to ask for referrals and how to follow up on them.

A referral from a happy client, a friend or business relations is a very easy way to introduce yourself to a prospective customer.

Whenever you make a sales presentation, business prospect discussion with a prospective customer, don’t hesitate to ask for referrals. The appropriate time for asking for referrals is when the prospect he/she accepts or declines your service. At the moment when prospect is accepting your service is easier to ask for referrals. But don’t hesitate to ask even when the prospect declines your service. Be open and honest and ask directly. If you offer web development service, for example, you could ask, “Could you refer me to any contacts of yours who might be interested in my services?” Or, “Do you know anyone who could use our web development services?

I get 2-3 projects from my satisfied customers every month. When you follow-up with a satisfied customer or anytime you talk with someone, be brave to ask referrals, they may know another prospect who may be in need of your services.Don’t be hesitate to ask for more referrals. You can simply ask, “Do you know anyone else you could refer me to?” If you push, it does not work. If your customer is really happy with your service, he/she will refer someone even after years. Many people call their past customers frequently just to get referrals. Contacting a referral gives a much higher chance of success than making a random contact through phone or emails. When you contact the referral, introduce yourself and tell who referred to the prospect. If you already know something about needs of the referral, make sure you mention that right there. Don’t waste time. People respond more politely and purposefully if you are referred by someone known to them.

So ask for referrals. If someone needs service that you can provide, they will be glad that you contacted.

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