I teach a lot of different revenue generation strategies in my global travels, and I can tell you when done right referrals are the most powerful tool in the sales arsenal.  My challenge to you is to wake-up and recognize that if you don’t have a systematic referral program in place you are missing out on one of the simplest, lowest cost, ways to generate a massive in-flow of high quality customers for your business.

Why are Referrals so Powerful?

Referrals are the lifeblood of sales; they are more powerful than any advertisement you might run because referrals are founded in trust.

Referrals are powerful is because they create unequaled credibility from a trusted third party, a friend that’s experienced the benefits of doing business with you.  Referrals are even more powerful when they come from someone they know has successfully done business with you.  Why? Because when a referral comes from someone they trust there is no higher way to position the benefits you bring than to help a friend.

You can believe what your friend says about the person being referred as opposed to hearing a “corporate commercial” from a salesperson whose sole purpose is to make money from you.  Do you see the difference?

Referrals have an innate value as they are given freely as a reward for the high quality of service rendered.  A referral is the most compelling sales advertisement on earth. 

Best of all, because you served your customer with integrity you’re able to get referrals for absolutely nothing.

Research shows the how valuable referrals are - Paul and Sarah Edwards, authors of “Getting Business to Come to You” suggest that up to 45% of most service businesses are chosen by customers based on the recommendations of others.  A Dun and Bradstreet survey uncovered that referrals are one of the two most popular marketing methods for any business to make sales, the other one is advertising.  However, referrals consistently out-pulled advertising as to the quality and value of a new customer relationship.

One important note to consider is that referrals increase the life-time value of your customer who has referred someone to you; the referrer becomes more loyal to you and your business because once they have endorsed you, psychologically they become more loyal to you and your business. 

Many sales people and small business owners assume that referrals will happen by themselves if you give good service.  This belief if false and has no grounding in reality.  If you are not deliberate and proactive in developing referrals, the chances of you receiving as many referrals as you want are very unlikely. 

Remember your best customers are ready and willing to give you referrals - You just need to show them how. Give them a blueprint on how they can help you.

Let me take a moment to discuss the difference between Word of Mouth Advertising and Referrals.  Word of Mouth advertising happens casually when one of your customers or friends mentions you or your business in a conversation. It’s not intentional or planned and is not something you can depend on to generate a predicable revenue stream.

A referral system is a systematic process that captures qualified prospects through your trusted relationships with clients, associates and friends.

A ’system’ by its definition is a process that produces predictable, measurable results.  A system like the ones I design can be controlled and ramped up to provide all the referrals you can handle very quickly. Every business benefits from word of mouth advertising… but don’t mistake the random nature of word-of-mouth advertising with developing a systematic, predicable system for referral prospecting.

So what’s the secret to getting all the referrals you can handle?  My answer is simple, ‘You just ask for them.’  Logic dictates that you have to ask for a referral in order to get a referral but it’s the fear of asking that impedes many of you from moving forward. 

One reason for the fear is that you are unsure about the perception of value you consistently bring to your clients.  There are a number of reasons for this, and too many to go into here.  Just know that you must become comfortable with asking and overcome the battle you are having with fear because the person you’re asking for the referral can sense the fear, and will be less likely to give you a referral when you are unsure yourself. 

Here’s The Good News - People Want to Give Your Referrals! 

Shift your belief from one of receiving to one of giving.  If you truly believe that it will be helping them when you ask them to give you a referral your fear will quickly fade.  Most people want to give back to those who have helped them, and your customers are no different and want to give you referrals.  It makes them feel good that they found someone they had a good experience with and human nature dictates that they will want to share you with their friends.

This positions the referrer as a hero when they give their friends the gift of great service from you, and the person who referred you will feel as though he was able to do his friends a great favor.

When you ask for a referral, after treating the person honorably, you are actually doing them a special favor by letting them refer you.

The Blueprint for How to Ask for a Referral

Has someone ever asked you for a referral?  Did it go something like this: ‘Hi Joe, do you know anyone who could benefit from my services?’  Joe starts to ponder your question and eventually says, ‘Well, not off the top of my head, but I’ll keep thinking about it…’

This is how 97% of all referral questions are asked and in reality fail.  You might as well not have ever asked the question.

Rarely, if ever will you get a positive response.  Why? Because you didn’t ask the right question in the right way. The phrase ‘know anyone who…’ is too broad for people to think about and isolate a good referral for you.

People need a specific frame of reference to help them narrow down the playing field of potential referral candidates.  Imagine that you are talking to one of your customers who’s pleased the service you are delivering.

You ask them, ‘You’re a member of the Association for Corporate Growth in Dallas right? They respond, ‘Yes, I am.’ You ask, ‘Do you go to their meetings on a regular basis?’  ‘Yes, most of the time.’ they reply. ‘Is there anyone in your ACG Chapter that you believe could benefit from my ______ (fill in the blank) services?  Maybe one or two people you’ve known in the group who are Vice Presidents of _______ (fill in the blank)?’

Did you see the difference?  You gave a narrow frame of reference from which to draw from.  It allowed the person you’re asking to SEE the potential referral candidate in their mind.  This may limit the number of potential people that they might know, but it is far more effective than opening up the ocean of people that they can never identify for you without a reference point.

By being specific with your request, it will also stay in their mind long after you’ve asked it because they visualized your services with much greater intensity.  This will ‘lock-in’ you in the top-of-mind with the individual.

I know one very successful insurance sales person who loves to hunt and knows all the top hunting lodges in America. All of his referral questions are centered on Hunting Lodges because he knows that anyone who can afford to be a member of certain lodges needs his Estate Planning services.

Referrals come from two primary sources - your current customers (people who have done business with you) and non-customers (prominent people) within your target customer group.  You should have an active referral system to secure business from both types of people.

Your customers could be the most enthusiastic about giving you referrals because they have experienced you, your product and your service.  But, when done right you can get more referrals from non-customers than existing customers who have never used your service.

Start developing a system today for obtaining referrals first from your customers and second from non-customers who are Centers of Influence in your market.

In order to quickly ramp-up a Customer Referral Program, recognize that receiving referrals from customers starts giving the kind of great service that creates loyal customers for life.

Perhaps the simplest way to harvest referrals from your customers is to send them a simple well-written letter asking them for their help.  I have an example of this type of letter as a resource in my High Performance Selling System.

Your best referrers are your customers.  These are the people who have had a positive experience with you and can vouch first hand for your service and products. However, there are many other people and organizations that you must include in your referral prospecting system —

The second set of people are individuals who know and network with many other important and influential people.  These people are often known as, ‘Centers of Influence.’  Centers of Influence can multiply your marketing efforts ten-fold if you approach and position your request properly. They can easily turn your marketing efforts from one-to-one to one-to-many.  Centers of Influence are the heavy hitters that can have a profound multiplying effect on your business.

A person savvy in generating new business will spend the majority of his referral prospecting time with the 20% within their Centers of Influence that produce 80% of their results.

Centers of Influence should be ranked by their ability to help you.  Your Top Tier Centers of Influence are people that are directly related in some way to decision makers within your industry or profession.  Top Tier Centers of Influence have a connection to your industry because they are aligned with others you wish to reach either in business or socially.  Referrals coming from your Top Tier Centers of Influence can be very powerful to your business in many ways.

Your goal with Top Tier referral givers is to be the first person “Top of Mind” when someone asks them about purchasing a _______ (fill in the blank).  With this in mind, you should sit down with the people inside of your company and come up with ideas about how to be the first person that a Top Tier referrer thinks about. Next, develop a list of who those Top Tier Centers of Influence are.

You could consider sponsoring networking events or social gatherings for your Centers of Influence. [Note: Do not allow your competitors to attend.]  Have a good cross section of attendees. You might hold several of these events / parties throughout the year so that you can invite several different potential referrers from the same industry.

Add each Top Tier referrer to your newsletter list so you can continue to “touch” them and maintain your Top of Mind Advantage.  Be sure to give them helpful information that they can use to make their _______ (fill in the blank) go up or ______ (fill in the blank) costs go down.  Give them _______ (fill in the blank) advice and information on new developments in your industry in which they should be aware.

Invite them to an all-expense paid _________ (fill in the blank) association luncheon that has a great speaker.  Rent a limo to pick them up, serve them wine or fine drinks, and treat them like stars.

Purchase a book on _______ (fill in the blank) about their business and give it to them as a free gift.  They will thank you for your interest in wanting to help them grow their business.

If they are a potentially a big referrer, you should send them a ear round gift that they will receive every month from Harry and David (www.HarryandDavid.com). This will keep you in their minds all year long.

Place them on an automated schedule to send a birthday card to them, their wife and their kids, send them an anniversary card, and cards for the holidays.  I use “www.RevenueWarriorCards.com” to help me stay in touch with my Centers of Influence.

Arm your Top Tier Centers of Influence with the _______ tools (fill in the blank) to help them to help their customers (and your prospects). You may consider giving your Top Tier Centers of Influence a supply of Special Reports that you have developed that are specifically designed to help them with the challenges they are facing.

Another idea is to purchase a best-selling book-on-tape that you think they might be interested in and give it to them as a gift to let them know you were thinking about them.  Information products about that teach your Center of Influence how to grow their business are always welcome and will let them know that you are interested in helping them grow their business.

Tier 2 Centers of Influence are people whom you come in contact with on a regular basis in your personal life but aren’t connected to your industry. These are trusted influential people who come in contact with a large number of other people and could easily act as a business conduit for you.

They too can multiply your marketing efforts - Your Tier 2 Centers of Influence include but are not limited to the following:  Neighbors, Friends, Clergy, Business owners, Corporate business executives, Accountants, Financial planners, Lawyers, Etc.

Your Tier 2 Centers of Influence are people that may have no idea what it is that you do.  So you need to take the time to clearly explain to them not only what it is you do but the importance of referrals for your business.

Go one step farther by inviting them to after-hours socials. Tell them stories about some results that your customer’s have experienced as a result of your product or service.  Get them excited about what you do.  Get to know what they do by asking them questions.  Now each of you can get excited when you give valuable referrals, which in turn will be transferred to the new prospect.

The Power of Cross-Promotions is perhaps the single most powerful referral program. Let me explain. A cross-promotion uses endorsements from other well-respected people. It’s a simple idea where an associate sends an endorsement letter about you and your product or service to their customer list and you, in turn, do the same to your customer list. It’s a win-win.

The reason endorsement letters are so powerful is because people will buy from people they know and respect. How many times have you asked a personal friend, ‘Do you know a good place to buy __________?’  Or ‘Do you a good ____________ that I can go to see about getting _____________?’

It is important to understand that we listen to people we trust, that’s the power of referrals.  People in authority positions can easily use their influence to help you win business just by recommending you within their inner circle.

In closing I’d like to remind you of something Zig Ziglar, the famous sales trainer once said, ‘You can get everything in life you want if you just help enough other people get what they want.’  This is so true!  Thanks Zig.

Establishing a referral program with your customers and other influential people is absolutely critical. Start today, and don’t make the mistake so many sales and business people make by not having a systematic program in place to capture referrals. They confuse word of mouth advertising with a referral system and, and tragically lose millions of dollars each year by overlooking the single most effective marketing available for a sales people and business.

Don’t make the same mistake!  Create a Referral System for your Top Tier and Tier 2 Centers of Influence.  Take the time necessary to develop your networking skills and hone your referral program today and start receiving an endless stream of high quality customers to your business. It’s money in the bank!

To learn more about how to create your own successful Referral-based marketing system; you’re invited to visit http://www.joeheller.com and learn more about “High Performance Sales Coaching”.

Editor’s note: Joe Heller can be reached at (713) 927-4494 or Info [AT] JoeHeller.com.

(c) 2008 High Performance Sales Coaching, All Rights Reserved Worldwide.

We must all adopt a millionaire mindset –

“Those who condemn wealth are those who have none and see no chance of getting it.”

– William Penn Patrick, 1967

Using the principles he teaches, Joe Heller co-founded a company that went from zero to 33 million dollars in only 3 years!  He combined a unique brand of ’street-smarts’ with an advanced sales and marketing blueprint he developed.

Joe Heller is the founder and president High Performance Sales Coaching, the fastest growing marketing and sales development company in North America. Heller’s high-energy ‘cut-to-the-chase’ style keeps his audience spellbound. Heller’s motto is “talk is cheap” and his unique ability is getting his clients to take “action” in the real world to produce real success has benefited those he touches.

But in the early days as an entrepreneur money was scarce. In his first start-up venture until he proved that his advanced trust-based selling blueprint could produce revenues as quickly and easily as he had promised.  However, six months into his first entrepreneurial business venture he had rapidly burned through $300,000 in cash because of the rapid growth he was experiencing.  After many sleepless nights and hitting a 7-figure run rate Heller’s “trust-concept” was proven and he quickly negotiated a $1.1 million investment from a strategic partner in less than 30-days.

Note: In this article every time I refer to myself (i.e. Heller) in this article insert your name. This article is about you overcoming adversity, self limiting beliefs and acquiring a millionaire mindset. You can do exactly what I have done and more. In this article I am just an example.

Finally after many years of challenges, Heller’s current business venture grew at thousands of percent a year stretching its reach, serving mid sized business across North America. He sold his 17.5% stake of the company to a private investor for a tidy sum to pursue helping others reach high-levels of success.

With the sale, Heller reached his dream. He was finally a millionaire; however, in less than two years, the money was gone. Through a combination of poor judgments and unchecked spending, Heller was back at his original net worth… living in an inexpensive duplex.

It was at that point that Heller began developing his theories about people’s mental and emotional relationship to money. He realized that he did not have an entitlement mentality; his “money barometer” was set for a specific amount of financial success and that would always limit him if he did nothing about it. After all, it was easy for Heller to make millions for others; he just couldn’t do it for himself yet. He was lacking the “millionaire mindset”.

He noticed this was not uncommon; most people had a self limiting financial point too. His most profound discovery was that his money mindset could be changed.  Using the principles he learned from one of his mentors, Horatio Alger Distinguished American – William E Bailey, Heller was able to reengineer his own “millionaire mindset” to not only create success, but to keep it and grow it and once again become a millionaire.

During his years of struggle, Heller vowed that should he ever get rich, he would help others do the same. He has kept his promise. Today, he is the president of High Performance Sales Coaching, one of the largest and fastest-growing seminar companies in the world. He has reached out and touched the lives of over 100,000 entrepreneurs, helping them build consistent revenue streams to move closer to their goal of true financial freedom.

With increased competition; more businesses and professionals are turning to sales coaches for the extra edge when faced with the challenging economy.

Wise leaders have sought counsel since the beginning of time. After all, everyone is blessed with a brilliant talent and the wise leader surrounds themselves with the best. CEOs are visionaries who understand their business, and take on the responsibility that every major decision they make can produce a profit or loss is on their shoulders.

The CEO also realizes it’s tough to get honest feedback from employees because few have put anything at risk, or they are simply afraid to challenge the CEO and chance “loosing” their paycheck.

The smartest people business have always turned to advisors to help them reach their goals. Traced back to seventeenth-century merchants who turned to “cunning men” or wizards for guidance; CEO’s today turn to their modern counterparts - coaches.

Here’s how to find the right coach — and what you can expect once you do. A coach is not a business consultant that you would hire to address a particular problem. And they’re not psychotherapists, whom you would engage to work through emotional issues.

Sales Coaches generally focus on one thing: improving you or your sales team’s performance as a leader inside your company and in your market. They do this in much the same way sports coaches work with athletes - by helping you make the most of your natural talents, find ways to work around your weaknesses and apply solid strategies to generate sales, and rapidly capture market share.

A good sales coach will hold you accountable, and make sure you meet your commitments in order to reach your goals by making sure you stay out of your own way - things [nearly] all of us can use a little help with.

Executive’s at large corporations have long relied on coaches. But entrepreneurial CEO’s arguably need them more - because they need an expert (i.e. coach) who can guide them on the specifics of performing at a new level.

“Entrepreneurs start out excited about being their own boss, and have a passion that drives them” says Joe Heller, who’s been advising business owners for 17 years as a Master Sales Coach, and President of Heller International, an international sales coaching firm in Houston, TX. But eventually, Heller says, many entrepreneurs find that while they have a wonderful product, they do not have the sales ability to bring it to market or expand the customer base once the product is introduced.

In cases like these, CEO’s turn to a trusted adviser like Heller, with whom they can brainstorm, set sales goals, confess their anxieties, and work through the day-to-day challenges to “outsmart” the competition.

Heller works over the phone; and travels to his international clients; coaching individuals, sales teams and geographically dispersed sales organizations worldwide. Heller provides tough love; in order to ensure his client’s see success.

The question arises - How do you make sure you choose the right coach? Simple, says Heller, in order to get the one you need “look for one with a proven track record that can help you achieve your specific goals”. Heller’s helped entrepreneurs sell $287 million worth of products and services so as a sales coach, he walks his talk.

Your goal in choosing a coach is choosing someone who can actually help you get the work done. There are so many pretend experts out there that Heller recommends that you ask for their “resume” and “success stories” when selecting a coach to make sure the fit is right.

Heller also recommends that you have an initial hour long coaching session and dive into in-depth conversations about where the coach can immediately help you. In Heller’s case it is sales and what can be done to impact the bottom-line as quickly as possible. One thing that Heller has over other coaches is that he is focused on ROI (Return On Investment) – which pays for his coaching services where other coaches are a “cost” on the balance sheet.

A sales coach helps you hash out everything from small problems in hiring and accessing sales people to larger issues like finessing cash flow. Heller’s role as a coach is to keep his client focused; he’s developed a laser eye for tasks that produce ROI. A sales good coach can help their client make key decisions, boost confidence and creativity around how they solve problems to win and win big allowing the people who engage a Sales Coach to focus on larger operational goals – without getting lost in the blur of day-to-day selling.

Joe Heller, Master Sales Coach is available for - Individual Coaching, Team Coaching and Group Coaching in the United States and Worldwide.

Kevin Price, Host of the Houston Business Show (M-F at 11 AM on CNN 650), announced today the addition of Joe Heller as a new Business Show Advisor in Sales Consulting.  “Joe Heller is not just a local or national authority on sales, but one of the world’s leading experts on the subject” said Price.  “We look forward to the expertise and knowledge he will bring every time he is on his show and in his column.”

Master sales trainer, consultant and keynote speaker — Joe Heller, Revenue Warrior produced $287 million in sales during the last decade for companies just like yours.

Individuals who lead companies who are serious about success are turning to Revenue Warrior, Joe Heller.  He is the accredited mastermind behind hundreds of successful businesses around the globe. Now you can tap into your businesses’ potential and open the flood gates as you take your businesses to new levels of profitability with Joe’s unmatched Revenue Warrior Selling System.

Stepping in and turning companies around is Joe’s specialty. Joe helps business worldwide produce new levels of profits and personal income for their owners.  Joe shows business leaders and owners how to “out think” their competition and see growth rates of 517% or more even in the toughest economy.  Leveraging Joe’s sales advice multiplies cash-flow using his profit acceleration system.

A dynamic speaker Joe is a popular speaker on sales and marketing topics, and speaks to over 50,000 people a year.  Delivering more “actionable content” per minute than any other speaker Joe has a reputation for keeping his audiences spellbound. With his high voltage message Business Leaders and Event Planners around the world seek him out, to get their people Rock-in!

Joe Heller’s Revenue Warrior Selling System differentiates itself by teaching you how to rapidly build TRUST in the Sales Cycle.  With this unique process Joe answers the most pressing question a prospect has — and NO it’s not “Why should I buy from you” it’s a more important yet often un asked question. It is “Why should I TRUST you?”

Joe is absolutely committed to his client’s growth.  Today, Joe actively helps clients get unparalleled results to produce staggering returns.  Now you can dominate your market, triple your returns on your marketing investment and win big over your competitors by a healthy margin.

Traveling 100,000+ miles a year, Joe proves his passion with a full schedule of speaking, consulting, and writing. He crisscrosses the globe teaching the mysteries behind magnetically attracting new clients with Revenue Warrior Selling, and he wants to teach you too!

A proven investment, engage Joe and get the advice that keeps you on top and is available for:

- Sales Workshops

- Sales Keynotes

- Referral Mastery Workshops