Personal referrals are the mainstay of many business professionals—often considered the most prevalent and effective way of opening the door to new business relationships.

One of the challenges with generating the majority of business through referrals is that many business people approach referrals in a very reactive manner. What I mean by reactive is that some individuals actually take a passive role in obtaining the referral. And, even if they are proactive, the might actually be going about it somewhat incorrectly.

So, with the understanding that referrals can and should play an integral part in your business development efforts I’d like to set forth some success techniques for maximizing your referral business.

As I said before many individuals approach referrals in a somewhat reactive manner, taking the approach that if the client appreciated their product or services they would proactively be talking about them and referring them to their family, friends and business contacts.

This may be somewhat true and a wonderful experience but think about it this way. Imagine all those folks that you’ve worked with over the years that have NEVER given you a referral. Is this because they have never been in a situation in which they can refer you or is it a case of out of sight, out of mind…or just because you have not been proactive and asked them to do it. They might not even know that you want referrals!

So, let’s go through some best of class practices for building your referral business.

#1 ASK FOR IT

What does that entail:

WHO: well certainly all of your satisfied clients with whom you have had an exemplary relationship. They’re in the first tier. But then, what about the folks that you have met with but for some reason have not consummated the relationship with you or your company. These folks might also be your champion—-for instance I’ve gotten business referrals from people that did not ultimately contract with me….they saw value but for whatever reason it did not come to be. So, you can ask these people as well.

Of course, referrals are also obtained from your power partners—-the people in those industries and businesses that are aligned with you business. These people are in a perfect position to refer business—but once again, it’s best to ask.

And then there is the old 6 degrees of separation. Everyone we know has contacts and who is to say that the person sitting next to you at an event that is not a client, nor a power partner and is actually in some totally different business…they too can be a source of referrals….if only you ask.

WHEN: they say that timing is everything and that is certainly true when asking for referrals. When you are successfully engaged in working with clients, or have finished a deal and there is a significant level of confidence and satisfaction with you and your product or service that’s the best time to ask for the referrals.

Often people ask for referrals just at the very beginning of the relationship…before the trust and confidence levels have been established. At this point it is premature to ask for a referral because you might still be an unknown quantity.

As for power partners, prospects that did not evolve into clients and general networking buddies—the same holds true. There must be a level of trust and confidence before the person can comfortably refer you to someone else.

Best advice: be careful to not rush the relationship.

WHAT TO SAY: Although some words and phrases may be considered better or more effective than others, obviously they key is to sound natural, comfortable and communicate with your potential referral source in the mode in which they will best respond.

Some tips:

1. I’ve really enjoyed working with you
2. I’m glad that you’ve been happy with my work
3. You know that I build and get most of my business from satisfied clients like yourself
4. I’d like to reach out to some new people/firms and I was wondering if you could give me the names of 3, 5, 8 contacts that you feel would benefit from speaking with me.
5. I assure you that I’m just looking to open the door and see if there might be a mutually advantageous fit…no heavy sales pitch.
6. For instance, do you have any friends, family members, clients, or vendor contacts that I can try to connect with next week?
7. Always try to get specific names and contact information
8. If they say that they need to think about it, schedule the time to reconnect with them
9. Always confirm that you can use their name when making the introduction. Better yet, ask them if they would make the introduction for you.
10. If they say they don’t have any referrals for you keep the doors of communication open for future referrals and a reconnect.
11. Always keep the referral source in the loop. Keep them posted on your contacts and the outcomes.
12. Say thank you with words or a gesture of appreciation.

Remember that referrals can be hot, warm or lukewarm. Some might even be cold. Just because the name came from a contact does not mean this referral is golden.

Always try to reciprocate. Look for ways that you might be able to help the person that gave you the referrals…can you refer someone to them? Offer them business knowledge. Remember the old adage, givers turn out to be getters and even if it takes awhile the referrals will usually come back in return.

Back to being proactive….or not. It’s up to you.