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What are common referral mistakes and how can you avoid them?

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Referrals are one of the most effective ways to generate new leads and customers for your sales business. They can boost your credibility, trust, and reputation, as well as reduce your acquisition costs and time. However, many salespeople make common mistakes when asking for, following up on, or rewarding referrals, which can hurt their relationships and results. In this article, you will learn what these mistakes are and how you can avoid them to get more and better referrals.

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Ajay Augustine

Award Winning Sales & Growth Strategy Leader

1 Not having a referral strategy

One of the biggest mistakes you can make is to ask for referrals randomly, without a clear plan or purpose. This can make you seem desperate, unprofessional, or pushy, and reduce the chances of getting quality referrals. To avoid this, you need to have a referral strategy that defines your goals, criteria, sources, timing, and methods of asking for referrals. A referral strategy will help you identify who to ask, when to ask, how to ask, and what to offer in return for referrals.

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Ajay Augustine

Award Winning Sales & Growth Strategy Leader
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A good referral system is a reliable tool to future-proof your business. Some common referral mistakes include not asking for referrals, assuming satisfied customers will refer automatically, being too pushy, failing to provide clear guidance, and worst of all, not following up. I tend to avoid these shortsighted pitfalls by ensuring to integrate referral requests into my sales process, offering incentives, educating customers on referral criteria, personalizing requests, and taking the time to express gratitude for referrals. This has allowed me to maximize referral opportunities and leverage word-of-mouth marketing to grow my sales pipeline effectively and maintain a healthy book of business.

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2 Not qualifying your referrals

Another common mistake is to accept any referral that comes your way, without checking if they are relevant, interested, or ready to buy your product or service. This can waste your time and resources, as well as damage your reputation and relationship with the referrer. To avoid this, you need to qualify your referrals before you contact them, by asking the referrer for some basic information, such as their name, contact details, needs, challenges, and goals. You can also use online tools, such as LinkedIn or Google, to research your referrals and verify their fit and potential.

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Ajay Augustine

Award Winning Sales & Growth Strategy Leader
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Oh yes, one of the biggest risks of not qualifying referrals properly include wasting time and resources pursuing leads that aren't a good fit, damaging relationships with both the referral source and the potential customer by pursuing mismatched opportunities, and potentially tarnishing your own reputation and the reputation of your brand by providing unsuitable solutions or experiences to referred prospects. Imagine taking a client shopping for Gold ingots, on a budget for Silver medallions. Properly qualifying referrals ensures that you focus your efforts on prospects who are likely to convert into satisfied customers, leading to more successful outcomes and stronger long-term relationships.

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3 Not following up promptly

A third common mistake is to delay or forget to follow up with your referrals, after you receive them from your sources. This can make you lose the opportunity to connect with them, while they are still warm and curious about your offer. It can also make you seem ungrateful, uninterested, or unreliable, and discourage your sources from giving you more referrals. To avoid this, you need to follow up with your referrals as soon as possible, preferably within 24 hours, by sending them a personalized message, introducing yourself, acknowledging the referral, and suggesting a next step.

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4 Not adding value

A fourth common mistake is to focus only on selling your product or service to your referrals, without providing any value or benefit to them. This can make you seem salesy, aggressive, or self-centered, and turn off your referrals from listening to you or buying from you. To avoid this, you need to add value to your referrals, by offering them something useful, such as a free consultation, a valuable piece of content, a discount, or a referral of your own. By adding value, you can build rapport, trust, and loyalty with your referrals, and increase your chances of closing the deal.

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5 Not thanking your sources

A fifth common mistake is to neglect or ignore to thank your sources for giving you referrals, or to thank them in a generic or impersonal way. This can make you seem rude, unappreciative, or indifferent, and hurt your relationship with your sources. It can also reduce their motivation and willingness to give you more referrals in the future. To avoid this, you need to thank your sources sincerely and specifically, by expressing your gratitude, highlighting the results, and giving them feedback. You can also thank them in a creative or memorable way, such as sending them a handwritten note, a gift, or a testimonial.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are common referral mistakes and how can you avoid them?

1

2

3

4

5

6

1 Not having a referral strategy

2 Not qualifying your referrals

3 Not following up promptly

4 Not adding value

5 Not thanking your sources

6 Here’s what else to consider

Sales

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What are common referral mistakes and how can you avoid them?

1

2

3

4

5

6

1 Not having a referral strategy

2 Not qualifying your referrals

3 Not following up promptly

4 Not adding value

5 Not thanking your sources

6 Here’s what else to consider

Sales

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