Asking for Referrals

by nique1221 » Tue Jan 23, 2007 04:52 am

So what do you think is the best time and way to ask for referrals when you are in the sales cycle with a client? Lets see what everyone has to say about this topic.

Total Comments: 23

Posted: Tue Jan 23, 2007 10:41 am Post Subject:

For my own opinion, there are some ways to ask for referrals. As we all know insurance selling has the capacity of an unlimited stream of prospects only if the agents knows what to do. The first thing that needs to be done is to have a good after sales service. When clients feel that they are taken cared of even though after the sale was made, they would be very pleased to give referrals. They would not hesitate to do this because they know that the agent would do the same to the person they refer.

There is another way to ask for referral. And i guess this is what most agents do. Right after they closed the sale and accepted the payment, they ask referrals immediately from their clients. When the prospect become a client, this simply means that he or she believes that he or she needs the product so he / she would be willing to refer others people who need the product.

Even if the agent could not close the sale, it is also one way to ask for referral after the product presentation. There are many people who don't feel the need for insurance but they may know some people who need it. So when the sale was not made from that person, agent could ask for referrals. By this way the stream of prospects would not stop.

As we all know, referrals and prospecting is the lifeblood of insurance selling. When an agent stops doing this, the business would surely not be a success.

Thanks!
Joven

Posted: Tue Jan 23, 2007 12:29 pm Post Subject:

I know I'm in the minority but, I never ask for a referral.

Posted: Tue Jan 23, 2007 12:35 pm Post Subject:

Okay, I once again forgot to log on! Well that was me that don't ask for referrals, just doesn't seem like the thing to do?

Posted: Tue Jan 23, 2007 02:23 pm Post Subject:

Joven.... I was hoping you would write that....Yes at the close of the sale is a good time to ask for referrals, but what if the policy did not come in at the rating that you wanted and you dont close the sale? Do you think that client would want to give you referrals then?

A good time to get referrals is also when you meet with the client for the first time. At the end of your meeting...hopefully they will be excited about what you just talked to them about so it would be easy to ask "who else might you know that would be willing to meet with me briefly?"

RICK!!! No referrals...so how do you get your business? Referrals are the best way to get business...Im mjust curious as to why you dont use this practice...

Posted: Tue Jan 23, 2007 02:40 pm Post Subject:

In my expierence, asking for referrals doesn't pay off at all! Now maybe you work it different than me but let me ask you, has it ever truly paid off for you?

Lets work it from the beginning, first off I don't like giving referrals so I come from a bias view point. Lets say I sell a policy to John, now I ask John for referrals? Now IMHO John most be thinking why? Why is he asking for referrals, obviously he needs more business, wow I just did business with a guy that needs more business! Just sends the wrong message in my opinion. Now say I hand him ten cards, and say, "John, you know I hate to give out my friends and associates information so I'm not going to ask you to do that. So I'm going to give you some of my cards, if anyone ask you about the best insurance agent around just tell them to give me a call! (of course smile and have fun!).

The only true referral is one that calls you an says, "John gave me your number and....". Not you calling them and saying "John gave me your number...." or whatever the line is that you are using.

Now I understand everyone does this differently, this is just my opinion and one with obvious bias.

Posted: Tue Jan 23, 2007 03:17 pm Post Subject:

Hi rick,

That is one good point. It is different from what i think but i think it would work. As what you have said,

Lets say I sell a policy to John, now I ask John for referrals? Now IMHO John most be thinking why? Why is he asking for referrals, obviously he needs more business, wow I just did business with a guy that needs more business! Just sends the wrong message in my opinion.

I think it really depends on the situation. As i have learn about insurance selling, people tends to give referrals if they think that the agent is worthy of that. I think it simply means that as an agent, selling one's self is as important as selling the product. Usually, if the client is satisfied with what they received from you, they would not hesitate to refer you from their friends and other people they know and think that need the product. There is another thing that some agents do is to make a referral note addressing the letter to the person referred to the agent. I don't know if you have done this, i don't do this either, but some agents do. And they have said that it is also an effective way of getting referral from other people.

About the point rick presented, i think this is also one good idea of a better way to generate referrals. I think, in this kind of approach, it can generate lesser contacts but a sure one. What i mean with this is that, maybe only a few people would contact him but it can be a 95% sale if that happens. When a person contact him, it is possible that a person would be willing and is very interested of having an insurance coverage. And if interest is triggered in the person, it is one good sign of closing the sale.

I believe that both of these approached are effective. It only depends on the agents what to apply based on their experiences and and situation.

Thank you guys for these brilliant ideas. I know i can learn more in these. More power!

Thanks!

Joven

Posted: Wed Jan 31, 2007 08:59 pm Post Subject:

Nique, here's my experience on how to effectively get referrals.

When you and your customer have a great conversation going on and he/she is very happy with your service - then by all means ask for the referral! It doesn't hurt to just ask. That's just basic sales 101.

Of course, if conversations turn sour - asking for referrals may get you a slap in the face! Depends on the situation,

If you have your own agency it is a great idea to have a referral reward every month or so to one of your clients who gives out the most referrals. It can be anything from a book on their favorite subject, movie tickets, a nice dinner.... it's worth it for the long term gains and renewals you get in the back end.

Additionally, I suggest maybe joint venturing with a business that is none competing with yours. For example, if you are ambitious strike up a referral system between the busiest car wash station to refer your business your way and vice versa.

Also, it is a great idea to have a monthly QUALITY newsletter to your customers and prospects and get some referrals in some of the newsletters you send out. Now I have some thoughts on this which will make this post waaaay too long, but just keep that in mind.

You can even work with related professionals to participate...there are much more possibilities than asking your customers directly.

Well, that's my two cents...

Posted: Fri Feb 02, 2007 05:45 am Post Subject:

Hey thank you I enjoy 2 cents...lol. I have tried the referral prize as a matter of fact but have not gotten very good results with it. Maybe I will try it again. Yes I need to start comming up with ways to get new clients...just not sure where to start I feel like I am being to broad but I have not really gound my Nich yet...know what I mean?

Posted: Fri Feb 02, 2007 11:55 am Post Subject:

I've never seen these type of schemes work, the last thing I want is someone giving my information or name to any sales person and when you ask for referrals that is exactly what you are.

If you haven't found your niche yet let me suggest Voluntary Group Plans, to small businesses of less than 10 employees. To get their names you have several good choices, one is to go do your library and head straight for the Reference Desk, as the person there you wish to see the books that list all businesses, something like Polk Directories for businesses. They will have the name of the owner, employees and what SIC classification they are. Now you have their information you go and visit, call or send a letter. Most libraries have this service over the internet, go check with your library by googling it and find out, free as long as you are a member. I'm sure NYL has voluntary group products such as life, SDI, LTC, health supplemental etc etc..

Or go to Goleads.com and for 9.95 a month you have unlimited access to their data bases, I've never used them the library is free so I stick with that, yet I have several aquaintences speak highly of them. Now why is this market good for? Mainly no one else is marketing to them! Most Group Agencies seek at least 100 or more employees and even those don't get much attention. When cold walking or calling you don't have to ask for the owner directly, any key employee will do and ask if there is a employee that handles benefits or the back office. Now once you get in just lay it on the line, do you want to offer benefits if it will cost you little or nothing? What you really need from them is to have the ability to use payroll deduction.

Posted: Sat Feb 03, 2007 04:28 pm Post Subject:

If you do the job you are supposed to do, people will not hesitate to send you other people.

Referalls are huge for me, that is where the majority of my business comes from. A good agent has what his/her clients best interest in mind, regardless if it benefits the agent or not. I turn people away alot, and in return I get rewarded with referalls from both customers and prospects.

Asking for Referrals

Total Comments: 23

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