UNDERSTANDING THE LAW OF MULTIPLE EFFECT USING REFERRALS
This Post has been dedicated to the understanding of the power of referrals – a power so enormous it can change the direction and profitability of this business – yet so many people still don’t want to believe in the power of this one amazing sales tool.
Even though Referrals have been the cornerstone of business transactions since time began, there is a greater reluctance to use it today than in times past.
So then let’s investigate its effect in the right hands. Let’s assume one of our satisfied customers passes on four referrals over a few months – in my experience that’s a conservative estimate. Also, let’s assume that one of the new salespeople writes new business to perhaps two of the four, or even one of the four – that would have the ability of doubling our existing customer base every few months. Thereafter, this Law of the Multiple Effect can grow alarmingly. So why don’t more people use it? Beats me, I seem to have always broken sales records, and the majority of those sales that have helped me break sales records were a direct result of referrals.
Here are some hints that can help anyone work their referrals better.