The Power of a Referral-Based Business
By Bob Burg, coauthor of The Go-Giver author of Endless Referrals, and creator of the online video course: Endless Referrals: The Go-Giver Way
Ask any long-term, sustainably top-producing and mega high money-earning salesperson or entrepreneur how most of their business comes to them and they will tell you that it’s through referrals.
And, doesn’t it make sense? After all, when it comes right down to it, “All things being equal, people will do business with, and refer business to, those people they know, like, and trust.”
Yes, of course the product or service but be fantastic. But that’s just the baseline; the “entry fee” – if you will – for the privilege of participation. Your success will be dependent upon the relationships you’re able to create, and the referrals you’re able to receive.
Indeed, there are many reasons for developing a referral-based business. Let’s look at four powerful benefits of such that truly stand out.
With referred prospects…
1. It’s easier to set the appointment. This is due to what’s known as “borrowed influence.” In other words, instead of going through all the traditional outbound calling, sending, knocking, and other forms of prospecting, which is what all of your competitors are doing, you get to sort of “slide right in” because of the influence of someone your prospect trusts and respects.
2. Price is generally less of an issue. That’s not to say it’s a non-issue, but it’s certainly less of one; again, because of this borrowed influence that you’ve earned. This means you can now sell on high value as opposed to low price. Remember, when you sell on {low} price you’re a commodity; when you sell on {high} value you’re a resource. You want to be positioned from the start as a trusted resource.
3. It’s simply easier to close or complete the sale. This is due to borrowed trust or what I call, “Vicarious Experience.” In other words, while this person has never done business with you personally, someone who they know, like, and trust has said, “THIS is the person to go with; THIS is the one who will take care of you; this is the one who stands behind what they sell; THIS is the person who has YOUR best interests at heart. And
4. They are already of the mindset that that's how you do business. After all that's how they met you. So, to them, it just makes sense. They know that you meet most of your prospects through referrals, that you sell on high value rather than low price, that you complete the transaction, and that you are then referred to others simply as a natural part of the process.
What a great way to do business!
Can you imagine how much more fun, how much less stressful, and how much more profitable your business would be when cultivating a network of endless referrals…The Go-Giver Way!
Question to ask yourself: How many more sales you would need over the next year in order to double your business? To triple your business? How much easier that would be if your business over the next year was driven by endless referrals?
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Bob Burg, CPAE is a Hall-of-Fame Speaker and author of the international bestselling business parable, The Go-Giver, which has sold well over one million books and been translated into 30 language. You can learn more about Bob, his speaking, and his books, by visiting https://burg.com/. Subscribe to his popular “Daily Impact” email at https://burg.com/daily-impact/.
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