How Do Referrals Fit Into The Sales Equation?

David Sims - Business Coach

David Sims – Business Coach

As you probably already know there’s three critical conditions that have to exist before clients will buy from you.  First, “they must like you.”  Most everyone probably likes you so that shouldn’t be a problem.  Second, “You must provide a good product or service.”  You probably are capable of delivering a good product or service so that shouldn’t be an issue.  The third and most critical condition is this, “The Prospect Must TRUST You.”

TRUST is critical and key.  There is a TRUST GAP between you and your prospect.  This gap either prevents them from buying or it moves them towards buying.  The width of the gap is determined by how much the prospect knows about you and what kind of relationship you have with them.  The wider the gap, the harder it is to sell.  The smaller the gap the better your chance of closing the deal.  There are about “nine trust gates to customer commitment” that are constantly going through your prospects mind (these all happen subconsciously) when they are trying to make a buying decisions.

When you receive a Referral to a prospect from someone who has influence with the prospect, you have instant credibility.  That is you have instant TRUST.  The “TRUST GAP” is instantly closed and you are your prospect are standing on the same side of the gap.  When that happens you have a great chance (about 80 to 90 per cent when your referral is gathered correctly) of closing your deal.

Most business people invest most of their marketing dollars on advertising that’s done incorrectly and doesn’t work.  Invest some money in building relationships and you’ll see your number of referrals grow.

David L. Sims

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