A referral is a sales lead that comes from a customer.
Definition. Acquiring new customers who are suggested or referred to by existing customers. Referral selling is the basis of all direct selling such as network marketing. Referral sales can be your #1 source of new hot leads and turn into a massive growth engine for your B2B startup if you do it right. The funny thing is most startup don't do referral sales. And those that try do a half-assed job at it. The right way to do referral sales: Ask for a referral. Anticipate the no (or “I’ll think about it.”). Ask one more time right then and there. Make sure to give them an email template and make it easy and frictionless to actually make the introduction. Referrals are the one lead generation technique where smaller firms have the advantage over larger one. But first, let's start with some background. A referral is a sales lead that comes from a customer. Of all lead generation methods, referrals are the most likely to result in a sale. The reason is simple. The greatest hurdle that every sales pro faces is TRUST. Rightly or wrongly, most people are pre-disposed to mistrust sales pros and see them as time-wasters Getting Referrals. Some customers are hesitant to provide salespeople the names and contact information of friends and acquaintances. Thus, it is up to the salesperson to ask for the referral in a way that motivates the customer to share such information. The ROI of Referrals. Every seller agrees that referral selling is, hands down, the most effective prospecting strategy. When you prospect through referrals: 1  You bypass the gatekeeper and score meetings with decision-makers every time. 2  Your prospects are pre-sold on your ability to deliver results. Selling is the best job in the world. We solve problems for our clients, become instrumental in their success, expand their thinking, and build amazing, lasting relationships. No other job gives us the opportunity to truly connect with people and to plug into the pulse of businesses around the globe. Customer referrals are one of the most powerful selling and marketing tools available. In fact, the best source of new business is a referral from a satisfied customer. According to Forrester Research, 71 percent of online shoppers read reviews before buying. There is a right time and a wrong time to ask your customers to help you market your product or service. If your business is one where a customer can quickly see the benefit of what they bought from you, then you should ask for a referral soon after the purchase, when they are still excited about the product. BananaStock/BananaStock/Getty Images. Sales referrals are among the most valuable prospecting methods used by salespeople at small businesses to generate new leads. A sales referral takes place when an existing customer provides the name and contact information of a prospect to his sales rep. Sales reps usually ask for referrals following a successful sale and at various points during a relationship with a customer. Some customers are hesitant to provide salespeople the names and contact information of friends and acquaintances. Thus, it is up to the salesperson to ask for the referral in a way that motivates the customer to share such information. Crafting an effective customer referral program takes time, but the return on investment can be startling. In fact, a study performed by The Wharton School of Business found that a referred customer is 18 percent more likely to stay with a company over time than the average, off-the-street customer. Once you have your ask delivery down, narrow in on specifics. The best customer referral programs are those that benefit the referrer and the referee. These are the types of programs that a referrer is more likely to talk about and not feel bad touting to their friends. Referral marketing is a method of promoting products or services to new customers through referrals, usually word of mouth. Such referrals often happen spontaneously but businesses can influence this through appropriate strategies. 
http://www.businessdictionary.com/definition/referral-selling.html http://blog.close.io/how-to-do-referral-sales http://www.inc.com/geoffrey-james/3-tricks-to-getting-sales-referrals.html http://smallbusiness.chron.com/sales-referral-22835.html https://www.salesforce.com/blog/2013/08/referral-selling.html http://www.inc.com/guides/2010/08/how-to-get-customer-referrals.html http://smallbusiness.chron.com/sales-referral-22835.html https://www.salesforce.com/blog/2013/08/customer-referral-program.html https://en.wikipedia.org/wiki/Referral_marketing
what is referral sales