---

What Are 'Referrals'?

Referrals are trusted recommendations that make it easier for people to choose to work with someone they don't know.

Referrals work because they transfer the qualities of being known and liked.

The more people who know, like, and trust you, the more Referrals you'll get, and the better off you will be.

Josh Kaufman Explains 'Referrals'

When your car breaks down, who would you rather take it to-a mechanic who's a friend-of-a- friend, or a random operation you found in the phone directory? Given the choice, people always prefer to interact with people they know and like.

Referrals make it far easier for people to Choose to work with someone they don't know.

Referrals are effective because they transfer the qualities of being known and liked. The reason you're more likely to go to a mechanic your friend recommends is that you know and like your friend, and your friend knows and likes that mechanic. Even if the competing mechanic in the phone book is highly qualified, that doesn't matter as much as being known and liked.

The referral transfers the knowing / liking effect to the recipient-instead of being a risky unknown quantity, they're suddenly a friend.

Cold-calling doesn't work very well because the caller is unknown. Remember, our minds tend to treat unknown people and situations as potential threats, which activates our natural defenses.

If someone doesn't already know or like you, you're going to have a tough time convincing them to do what you want.

Even the most obtuse commonalities can significantly warm up a cold connection. If someone mentions they're from the same area as you, or mentioned that they want to the same college, or know the same person, you'll automatically start to like them more-even though the connection may be very tenuous.

The last year Kelsey sold wedding gowns in Manhattan, over 70% of her sales came from referrals.

When you're considering spending $10,000 or more on a designer dress, you want to work with someone you know and like-and Kelsey's previous customers really liked working with her. Before they entered the salon, most of Kelsey's prospective customers already knew and liked her-and she closed many more sales as a result.

The more people who know, like, and trust you, the better off you are. Referrals are the best way to expand your network of personal connections.

Questions About 'Referrals'

• Do you give referrals to business owners you like and trust?
• What can you do to encourage others to refer prospects to you?

---

"The way to get on in the world is to make people believe it's to their advantage to help you."

Jean de La Bruyère, seventeenth-century essayist and moralist

---

---

Share this concept:

https://personalmba.com/referrals/

---

---

---

---