benefits, and your company, to convince you that you must ask for referrals, at minimum, at the point of sale. How many referrals do you want? I have found that if you ask for three referrals, which, by the way, is the average number salespeople tell me they ask for, you’ll average getting 1.5 referrals per sale, or approximately half.
So if you want three, you should ask for six. If you want five, ask for ten. Why shouldn’t you ask for ten? Who came up with the limit of three? I think it was magicians who determined that if you ask someone to pick a number between one and ten, the highest percentage of people would pick three. When someone says they are going to shop around, they often say they are going to get three estimates. The government requires three estimates when looking for a product that isn’t let out on a bid notice; always the magic number three.
So break that mold; ask for ten. I did, and I usually got six or more leads. Why? Because of how I asked for them, and the way I prepared the prospect prior to asking. For example, after getting their autograph on my sales agreement, and while completing other required paperwork, I would ask the wife to get her personal phone directory, because we would need it before we were through tonight. I didn’t ask if it was possible or say “Could you …?” I simply told her we’d need it. Once she had it in front of her it became far easier for her to give me names.
Another tip is to only ask for the names at first.
Salesperson: “What is the first name that comes to mind, Mrs. Jones?”
Mrs. Jones: “My sister Jennifer Rogers.”
The salesperson writes that name down.
Salesperson: “What is the next name?”
Mrs. Jones: “My next-door neighbor, Marge Johnson.”
Salesperson: “And next?”
The goal is to keep asking next until she stops you. If you told her you needed ten in the beginning and gave her a reason why, keep asking at least until you get to ten, but I’d still say “Next” after the tenth name. She might give you eleven, twelve, etc.
After getting all the names, then you ask for their phone numbers and addresses. If you ask for all that information with each name, she’ll likely tire of the process sooner. However, once she’s given you all the names, she’s almost obligated to give you the balance of the information.
It’s clear how asking for leads exponentially decreases your need for company leads:
Four sales = sixteen leads = sixteen presentations = seven or more sales (depending on your close average) = twenty-eight leads = twenty-eight presentations = twelve sales = forty-eight leads and so on.
Just imagine if you could average six, or eight, or ten leads per sale. Then multiply all that by three if you ask for leads after every presentation. Wow!
“Drop me in a city where I know no one, and after I make my first few sales I will never need or want company-provided leads again.”
Bird Dogs
I mentioned bird dogs earlier, but just as a reminder, a bird dog is someone who, through his or her influence or position, can lead you to qualified leads—just as in hunting, a bird dog scares up quail from the brush.
In my career I’ve utilized lots of bird dogs and rewarded them accordingly. While someone may point you to a lead on an occasional basis, you will certainly get better results if you reward that effort, like the bird dog that gets a treat every time it scares up birds. Following is a partial list of the types of bird dogs I have partnered with:
Real estate agents. These folks work on straight commission. They know when someone is purchasing a home or commercial location, and they often know what that property needs to fulfill the buyer’s desires. Buyers often look to the real estate agent as an expert in all matters. For example, when someone is considering a house, but the landscaping is below their standard, they may ask the agent if she knows someone in the landscaping business. They may ask the agent for an estimate on how much it may cost. If a landscape salesperson develops a Bird Dog relationship with the agent, three people could wind up happier: the customer, because not having to search for a reputable” landscaper is one worry off his shoulders; the landscape contractor, because finding another customer is vital to her success, and the real estate agent, because that is one problem she doesn’t have to worry about—and the bird dog fee isn’t bad either.
Landscape contractors. The landscaper may rely on the real estate agent for leads, but she is also a source of leads for other contractors who work in or around homes and businesses, including real estate agents. Often people spruce up their landscape prior to listing their home for sale. This gives the landscaper an opportunity to reciprocate by furnishing a lead to the real estate agent.
Inspection services. Today when people purchase a house they almost always use the services of a home inspector to make sure that everything is working and that there are no hidden problems that will affect them afterwards. How did the home inspector get together with the buyer? Perhaps through the real estate agent or a mortgage broker. And once he inspects the home he knows what the home needs. He probably also knows if the home passed inspection sufficiently for the sale to go through. Could he be a lead source for businesses that sell to homeowners? Would it be an advantage to know the contact information for a new homeowner even before the actual sale goes through and becomes public knowledge? Would you like to beat your competitors to the prospect?
Insurance brokers. When I was in the security alarm business, having an insurance broker as a bird dog was a huge advantage. Homeowners and business owners who have valuable items on their premises are often required to protect those premises with a fire and burglar alarm system. When the insurance broker recommended me to a client who needed a system, my chances of making the sale increased exponentially. In most cases the client didn’t bother looking anywhere else for security protection.
Mortgage brokers. The mortgage broker is an excellent lead source for many of the same reasons that real estate agents and inspectors are.
Important people. What the Joneses do, everyone does. There are some people everyone wants to emulate. Those customers can become some of your best lead sources. I had a customer who had likely been listed in the Who’s Who in the society population of New Orleans. When this customer told someone she knew or someone brand new in the neighborhood that they should buy from me and my company, there was upwards of a 90-percent chance they would do just that. After all, they wanted to fit in and keep up with the Joneses.
Similar businesses. Birds of a feather flock together. So do businesses. Similar businesses tend to meet with other businesses that do what they do. They may be competitors; however, they often have reason to meet as a group. When they do meet it isn’t unusual for them to share sources. If they are happy with the service your company provides to them, they will likely tell someone in the same kind of business.
Everyone you know. Are the people you know aware of what you do for a living? You may be surprised to find that many of your friends, neighbors, and associates don’t, unless, of course, you tell them. Make a point of giving your business card to everyone you know. Let them know you would appreciate opportunities for additional business. People love to help their friends if they can, if only they are aware you need and want their help.
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