Ad-Libs by John Foust
How to ask for referrals
By John Foust, Raleigh, NC
“Ever since I started selling advertising,” Marla told me, “I’ve heard about the importance of referrals. But the problem is that most sales people do a poor job of asking for them.”
She’s right. The standard request for referrals goes something like this: “Here’s my business card. If you know of anyone who wants to advertise in the paper, let me know.” That kind of request is not likely to inspire people to reach for their Rolodexes, is it?
“Generic requests are okay in some circumstances,” Marla said, “but they rarely produce immediate results. I talked to a lot of other sales people – many of them outside the ad business – looking for a better way to get referrals. Along the way, I learned a technique that is designed to generate leads on the spot. It’s based on the idea that you have customers who already know people who are good prospects for you, but they need help in seeing those people as prospects.”
If you’d like to try Marla’s approach, here are three points to keep in mind:
1. Pick the right time. The two best times to ask for a referral are (1) as soon as a sale is finalized and (2) as soon as an ad campaign starts producing results. You want to catch them at a time when they feel good about the decision to advertise in your paper. That increases the likelihood that they will want others to follow their lead.
2. Paint a word picture. In sales presentations, it’s important to help prospects think visually – to help them see their businesses being advertised on the printed page. (Isn’t that what we do all the time with spec ads?) Why not do the same thing in asking for referrals?
Say something like, “I wonder if you will help me with something? I’m looking for someone who runs a business in town. They’ve been around for a few months – maybe a year or two – but they’re still searching for the right way to reach potential customers. They’ve tried some advertising, but nothing long term. Do you know anyone who fits that description?”
3. Narrow the focus. “You want to be specific enough to help them visualize potential prospects,” Marla said, “but not so specific that you limit the possibilities. Don’t say, ‘I’m looking for someone who has a $3,000 monthly budget’ or ‘Can you think of a business that is trying to reach married couples between the ages of 25 and 50?’”
Every industry has a network. It’s a sure bet that your customers know more about their regular contacts than they know about anyone else. So if you’re talking to a car dealer, look for links to companies that supply products or services to that dealer. And if you’re talking to a store owner, ask about new and existing businesses in the neighborhood.
“This technique has generated more leads than anything else I’ve tried,” Marla said. “Some of my customers have actually looked through their files to find prospects for me.”
(c) Copyright 2006 by John Foust. All rights reserved.
John Foust conducts on-site and video training for newspaper advertising departments. His three new video programs are designed to help ad managers conduct in-house training for their sales teams. For information, contact: John Foust, PO Box 97606, Raleigh, NC 27624 USA, E-mail: jfoust@mindspring.com, Phone 919-848-2401.