Omar Zenhom (1:47)

Business with practical business lessons three days a week. Monday, Wednesday, Friday Today's Q& A Wednesday where we answer a question from one of you, one of our listeners, one of our subscribers, one of our community members. Today's question is from Franco and he what's the right way to ask for referrals? Franco, this is a great question because when you have a happy customer, they can become your best salesperson. Referrals is not just about the asking. It's about the timing, the strategy and understanding human psychology. I'm gonna break it down for you. Don't worry. Starting with step one. Ask for referrals the right way. One of the biggest mistakes people make when asking for referrals is being too vague. My dad was in car sales. He was one of the top salesmen for Acura cars in the U.S. he was the number one salesman on the eastern seaboard. And I learned a ton from him because I used to go to work with him on Saturdays. I used to work at the wash base, wash cars at the dealership. But my job ended at 3pm and he continued until 9pm he was my ride home. So I went up to the showroom and used to watch him perform, do his thing and sell cars. One of the things I remembered was after somebody signed on the dotted line, a customer just bought a car. Most salesmen would ask for referrals all wrong. My dad never asked for referrals this way. But most salesmen would ask like this. They would say, do you know someone who would be interested in buying a new car as well? Do you know anybody in the market looking for an Acura or looking for a reliable luxury car? Now, in and of itself, this sounds pretty normal, right? That sounds pretty good. And what's wrong with that? The problem with phrasing it that way, by phrasing, do you know someone? It puts the burden on the customer to think hard about, do I know somebody who wants to buy a new car too? And most people don't bother. I remember clearly that people used to just say to the salesman, if somebody comes to mind, I'll let you know. I have your business card. I'll let you know or I'll refer them to you. And of course that never happens. Right? They're not going to really do that. So what's a better approach? My dad used to do something a little bit different. It's slightly different, but makes all the difference. Instead of asking, do you know? He would say, who are the three people?

Omar Zenhom (4:03)

People you know?

Omar Zenhom (4:04)

Right. So number one, changing from do you know? To who you know? And making it specific. Saying three people, who are the three people you know who would really be interested in a new car in the next six months? So what does this do? Well, it makes people think about who they know instead of do they know anybody do you know? Is like a yes or no answer. Who you know is okay, let's think of three people and would be interested in the next six months. So that's a pretty big window. And also the specific, specific number of three. Now, my dad would add a little.

Omar Zenhom (4:38)

Bit of an element here.

Omar Zenhom (4:39)

He would give him a paper and pen. It was like a small, little like post it note type of thing, something like this, right? And he would say, write down those three people their name and their phone number. Now this was a 90. So phone numbers were what people use to communicate, not email. And he would say, take your time, I'm gonna go and pick up a gift for you that I got prepared for you before you arrived. And he would leave them at his desk as they would just kind of do this homework and write down three names, three phone numbers. I think my co worker, I think my cousin, I think my uncle might be in the market and he would come back from the parts department with like a set of new floor mats that would fit the car. My dad was planning on giving them this gift anyway, but it was an interesting situation where I would watch where they were right things that maybe they wouldn't finish it. And then he would present them that gift and they'd be like, oh wow, that's amazing, thank you so much. And they just continue finishing the homework and get those three names and numbers down. At the very least they would say, I got you two names and numbers, I will come back and give you more. Want to do my first service Again, choosing a specific number makes the task actually easier, more actionable while still being open ended and enough to encourage them to kind of participate in this action. So stop saying do you know someone who would benefit from my product? And start saying who do you know? Or who are the three people who would benefit from my product or service? And I like phrasing it with who do you know would benefit from? Because this is your opinion. I think this person would benefit from this product or service instead of would be interested. Who do you know would be interested? Well, I don't know if they're going to be interested. I don't know what they're thinking. I know what I'm thinking. So that's a different little phrasing. They're saying who do you think would benefit? So as an action step, the next time you ask for a referral, be specific. Give them like a very specific assignment. Your customer will really appreciate having a clear task and watch how much more responsive they will be.

Omar Zenhom (6:40)

What if you can make your New Year's resolution automatic? Acorns makes it easy to start automatically saving and investing so your money has a chance to grow for you, your kids and your retirement. And listen, you don't need to be an expert. Acorns will recommend a diversified portfolio that fits you and your money goals. You don't need to be rich. Acorns lets you invest the spare money you've got right now. You can start with $5 or even just spare change. You don't need to feel like your financial wellness is impossible. Acorns gives you small, simple steps to get you and your money on track. Basically, Acorns it does the hard part so you can give your money a chance to grow. Head to acorns.com mba or download the Acorns app to start saving and investing for your future today. Paid non client endorsement compensation provides incentive to positively promote Acorns Tier 2 compensation provided investing involves risk. Acorns Advisors LLC and SEC registered investment advisor. View important disclosures@acorns.com MBA if you have.

T-Mobile Representative (7:43)

A locked AT&T phone, we're here with bolt cutters. T Mobile will help pay off your locked phone and give you a new 5G phone for free. Free. All on America's largest 5G network. Visit t mobile.com carrierfreedom Be a virtual.

T-Mobile Legal Disclaimer (7:57)

Prepaid MasterCard in 15 days. Free phone up to 830 via 24 monthly bill credits plus tax and a 10 device connection charge. Qualifying port and trade in service on Go5G next and credit required. Contact us before canceling entire account to continue bill credits or credit stop and balance on required finance agreements. Do you have bill credits and if you pay off devices early.

Omar Zenhom (8:15)

Step two Timing is Everything the best time to ask for referrals isn't random. It's not just like, oh, this is a random situation or like an automated email as soon as they buy. It's when your customer is most satisfied with your product or service. So usually in car sales, what my dad did is like you would negotiate a deal and then they would prepare the car for delivery the next day and the car would be all clean. They're all ready to go and they've, you know, sorted out all the legal paperwork and the license plating and all that kind of stuff in the DMV and the car's ready to be picked up. So basically the customer's coming to pick up their car. This is as much in love that customer is going to be with that product. Okay? It's like, yes, I am on a high. I'm going to get my new car and drive it home and my neighbors are going to take a look at it. It's just so beautiful and shiny. It's got 0km or miles on it. So when you ask for the referral is super important when they first get the first value of that product or service. And this is the case for buying a new car, where they're about to get into their car and drive a home and they're getting their new floor mats and all that kind of stuff. This is when they're on a high. So you need to analyze what is the moment your customers achieve their first win with your product or service. That's when their expectation and appreciation for you and the product is at its best. So, for example, let's say you're a business coach and you want to ask for referrals. The best time to ask is when your client hits their first milestone, like they sign their first client or make their first sale. That's the perfect time to ask for referral and say, hey, who are the three people that you know that would most benefit from the training that you just received? Another good strategy that I learned from the book $100 million offers by Alex Hormozi is to ask when they ask for a discount. Ask for referrals when they ask for a discount. If a customer asks for a discount, you can say, hey, I'd be happy to offer you a discount or a bonus if you could provide me three referrals. Because these referrals can help me get more business and cover the cost of this discount. This creates a win win situation where they get the value, they get something really cool, a discount or a bonus, and you potentially gain a new customer. So as an action step, look for the key moments in your customer's journey to make that referral request. When are they going to be so excited about the product or so when are they going to get their first win? When are they going to be really in love with what they just bought? That's the perfect time to ask for a referral. Or they're in negotiation and they're asking for a discount. Good time to ask for a referral. Step 3 Make it easy for them okay. The easier it is for them to give you a referral, the more likely it's going to happen. Pretty logical, right? Even when people are willing to give referrals, you need to remove any kind of friction as much as possible to make it easy for them to give you what you need. For example, when I ask my customers over email to give me referrals, I give them a script, make it super simple. They can just copy and paste it, change your variables, and they can just send it to a friend. So for example, I would give them a script that says, hey friend, I've been using $100 MBA. It's been an amazing program. I thought you'd Benefit from it too. Check it out, here's the link. So simple. This could be a text message, a WhatsApp message, whatever. You can even offer incentives to referrals. So the people that are referring and the new customer that are referring to you, that make it a win win. Okay, so for example, you could say when you sign up, email the customer support team and tell them I referred you and the support team will give you a free month and me a free month so you could tell the person you're asking the referral from, hey, I'll give you a free month and the new customer free month if you refer them. So as an action step, make it easy for them. Create a referral template, some sort of incentive and share with your customers. When you ask for referrals, whether it's via message or on the phone call or on email, make it simple for them. If you make a copy and paste, you're really just doing all the work for them and it's just a no brainer. Lastly, this is a step a lot of people forget. Step 4 Follow up and show some gratitude. When someone gives you a referral, it's critical. It's critical to follow up with both the referrer and the person they referred. Okay, why does this matter? Well, showing gratitude builds goodwill and increases the likelihood of future referrals. Okay, if you show that, hey, I'm really grateful for what you did for me that you referred this person, this is going to incentivize them to continue to give you referrals. It also ensures you don't let a warm lead go cold. So let me be clear, you are showing gratitude not only to the person that referred the new customer, but also obviously the new customer, the new lead. So for example, I like to send a quick thank you note or a small token, a small gift to the person that referred me. I want to let them know that I really value their support. I actually like to send physical gifts like in the mail. It could be a gift of just off Amazon and I send a little thank you note from Amazon for them referring somebody to me. And it doesn't have to be expensive. It could be something very simple like a book or a candle or even just an Amazon gift certificate. That's at least something to show that you care enough to take the time and you get your VA to do this, your assistant to do this. And it could just be a system that you fulfill every time you get a referral. Referral. So as an action step, once you set up a system to track referrals could just be a simple spreadsheet and follow up with personal thank yous. Even if it's just a message. Like just a quick text message or email saying, thank you so much. I got your referral. I'm going to take care of them. I really appreciate you. So Franco and everybody who's listening. Asking for referrals isn't about luck. It's about strategy. It's about being specific. It's about asking the right time, making it easy for your customers, and always showing gratitude. Don't forget that. If you want more practical business lessons like today's, don't forget to subscribe to our podcast, on any podcast app you like to use or on our YouTube channel. And of course, if you have a question you want to ask here on Q and A Wednesday, go on over to 100mba.net Q the letter Q, and you can submit your question there. Thanks for tuning into the $100 MBA show. I'm Omar Zenholm and I'll see you in the next episode. If you're a listener of the show.

Omar Zenhom (14:48)

You probably own a business or looking to start one. So the question is, are you ready to thrive with your business? It's time to let Intuit QuickBooks take things like unpaid invoices and tracking expenses off your plate to take things to the next level. If you're a longtime listener of the show, you know how much I bang on about how important your finances are, getting your numbers in order, making sure your incoming invoices and expenses are all taken care of. That's where QuickBooks comes in. In it's an all in one business platform that can help you with day to day tasks like invoicing and expenses, manage and grow your business all in one place. Intuit QuickBooks your way to Money Money movement services are provided by Intuit Payments, Inc. Licensed as a money transmitter by the New York State Department of Financial Services.