Key Takeaways
- Referred prospects close at 4x the rate of cold prospects—40% vs 10%
- Mentioning the referrer in the first 30 seconds increases connection rates by 50%
- Top agents get 80% of their business from referrals—but only 11% of agents ask consistently
Referrals: Your Warmest Leads
Client Question: "My friend gave you my number—what's this about?"
When someone refers you to a friend or family member, you have an advantage:
- Trust transfer — They trust the referrer, so they'll give you a chance
- Pre-qualification — The referrer thought they needed you
- Common ground — You already have someone in common
But referrals also come with expectations:
- Don't embarrass the referrer — Be professional and helpful
- Don't be pushy — They agreed to talk, not to buy
- Deliver value — Even if they don't buy, treat them well
The Referral Call Script
"Hi [Name], this is [Your Name]. Your [friend/colleague] [Referrer Name] suggested I reach out. They mentioned you're [relevant situation: new homeowner/expecting a baby/starting a business] and thought a conversation might be helpful. Did [Referrer] mention me at all?"
Key Referral Principles
| Do | Don't |
|---|---|
| Mention the referrer early | Wait until the end to drop their name |
| Ask if the referrer mentioned you | Assume they know who you are |
| Be grateful for the introduction | Act entitled to their time |
| Provide value regardless of outcome | Burn a referrer's trust by being pushy |
| Follow up with referrer afterward | Forget to thank the referrer |
The Cold Referral
A referral who doesn't know who you are
Setup
You received a referral from a happy client, but when you call, the prospect has no idea who you are. The referrer apparently didn't mention you.
Client says:
“Who? I don't know a [Referrer Name]... Oh wait, is that Sarah from book club? She gave you my number? Why? I'm confused—what is this about?”
Practice Objectives
- 1Quickly clarify the connection without being awkward
- 2Acknowledge the confusion and apologize for catching them off guard
- 3Briefly explain why Sarah thought you should talk
- 4Offer to let them check with Sarah first if they're uncomfortable
- 5If they're open, set a proper meeting time
The Obligated Referral
Someone who agreed to talk only because they couldn't say no to the referrer
Setup
This prospect took your call because their boss referred you. They clearly feel obligated but aren't genuinely interested.
Client says:
“Yeah, Jim said I should talk to you. So, here I am. I mean, he's my boss, so... what did you want to talk about? I should tell you upfront, I'm really not in the market for anything.”
Practice Objectives
- 1Acknowledge the awkwardness of the situation
- 2Give them permission to say no—release the pressure
- 3Make it clear you won't report back to Jim
- 4If they relax, explore if there's any genuine interest
- 5If not, end gracefully and don't make Jim look bad
When calling a referral, you should mention the referrer: