Power of Persuasion: The Results Are Clear

July 8th, 2010 by Frank Damelio

All referrals were not created equal.

The results are clear.  My latest study reveals the secret to getting referrals that convert to sales.  This discovery may not be something you’ve ever considered.

When someone gives you a referral.  They may be connecting you with a friend, relative or colleague.   In some cases you will be connected with one of their vendors or one of their clients, and it is the latter two types of relationships that I tracked.

Let’s say Amber gives me a referral to John Smith because she thinks he would be interested in what I provide.  The fact is that if John is her vendor he is much more likely to connect with me than if he were her client.

I suspected this at the outset, but I never realized how big the difference would be.  Below you can see the percentage of successful connections made after the referral was given.

Why the difference?

Reciprocity.  One of the pillars of persuasion is the law of reciprocity, which dictates that people feel beholden to “pay back” those who help them.  In addition, people typically give back a great deal more than they received.

Above, we see the law of reciprocity in action.  Imagine yourself in the referral process:  If someone selects you to be his vendor and that person asked you to connect with one of his contacts, would you?  It is probable that you would feel beholden to at least make an initial connection.  However, if you are someone’s client or customer, you would likely be less compelled to reach out and make the connection.

Networker’s application.

I remember learning in Business Network International (BNI) that we should be specific when asking for referrals.  Instead of asking your contacts who they know that could use your services, you might ask which of their VENDORS could use your services.  Work with that population and you’ll have a much better success of making contact and avoiding the blow-off.

Beyond getting better referrals, you now have the secret to giving them.  Consider the BNI philosophy, “Givers gain.”  That creed was built on the law of reciprocity.  If you are able to give higher quality referrals by tapping into your pool of vendors, then the recipients of the high quality referrals will reciprocate.  And that’s how referral networking is supposed to be done.

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2 Responses to “Power of Persuasion: The Results Are Clear”

  1. Jason Kallio Says:

    Thanks for doing the study. It makes a lot of sense. I see a hyperlink to this blog in your future.

  2. Mark Shea Says:

    Very interesting, Frank. I have experienced that myself many time, and thought it might be the case. Glad you were able to confirm my suppositions. You’re the best!

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