In the world of sales, referrals are magical. They can transform cold calls into hot leads, open doors that were previously locked down tighter than Fort Knox and get you past that Gatekeeper from Hell. Most importantly, good referrals can lead to a salesperson's favorite thing: commission-generating sales! You might imagine, then, that something as valuable as a referral would be hard to come by. On the contrary, referral business is easily achieved with a few simple steps.

Step #1: Be Worthy

The first step in getting referrals is the most important, and it can be summed up in two words: be worthy! In other words, if you really want your customers to open their Rolodexes and hand over the names and phone numbers of friends who could use your services, you'd better be taking excellent care of them. This goes for your company as well.

If you are prompt about returning phone calls and delivering on promises and if your company's order fulfillment and customer service are always able to meet or exceed the customer's expectations, it's a safe bet that you will be able to solicit referral business from that customer. The reason for this is that you have gained that customer's trust; he is confident that you will not embarrass him by giving bad service to his friends. On the other hand, if you are impossible to reach when your customer is having problems and your company is consistently falling short of his expectations, you shouldn't be surprised if he denies your request. In fact, if he does give you a referral you should be very suspicious; he may have just given you a rotten egg as payback.

How do you know if you are worthy of referrals? An excellent indicator would be whether you are receiving occasional spontaneous referrals now. If you currently receive a phone call now and then from someone who was referred to you by one of your existing customers, chances are pretty good that you and your company are doing an excellent job. Trust me: if your service was lousy this would never happen. If you are receiving spontaneous referrals, or if you are otherwise able to determine that you are caring for your current customers in a worthy way, you can move on to...

Step #2: Ask

Very simply stated, the second step in obtaining referrals is to ask for them. Remember, spontaneous referrals are seldom given; if you are serious about getting this kind of business, you are going to have to ask for it. Don't be intimidated, though, especially if you've completed step 1. Referrals are the quid pro quo of excellent service, and your customers will be happy to help you out if you are taking care of them. So how do you do it?

Make an appointment with the customer, letting him know that you want to stop by for a few minutes to check in and make sure things are going well. When you arrive, ask a few specific questions related to the service your company is giving. You might try something like "Mr. Jones, how would you rate the timeliness of our company's deliveries on a scale of 1 to 10?" or "Ms. Smith, what do you like best about the service we are offering compared to your previous supplier?" After a few positive responses, you might say something like "Mr. Jones, I'm glad you've been pleased with the service my company has been offering. Can you think of any other companies like yours that you would like to see receiving the same great service we are providing to you?" If the answer is yes (which it likely will be), take good notes and be prepared for...

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