Referral-based transactions, when done correctly, prove to be the best source of clients.

Why, because when a customer is referred to you, there is an underlying “selection” process already in place, done by the person who referred these prospects to you. They have been chosen, as based on your requirements, financial capability, and the prospect’s own needs, as well. Referral partners will not refer someone to you if they think there is absolutely no possibility that a potential sale can be made.

This is true, because your partner has studied the situation in order to maximise positive outcome. This is where educating one’s self comes into play.

Just how important is teaching or learning in honing your craft and achieving your goal? Here are 5 good reasons why you simply must.

To know what strategies to use on each prospect. Not all people respond to the same techniques. You cannot present a slick online presentation to a person who still lives in the era of dinosaurs. You cannot over-simplify a sales pitch, and not prepare for it beforehand when presenting to another savvy business person. Educating yourself on what strategy to use to convince others to refer your business is extremely important. Sometimes, a product or service is good, but the manner in which it is presented is that which turns the potential referral giver off.

To find out what potential clients want. The worse thing to do is to sell something to someone who has absolutely no need for it. Before approaching anyone, educate yourself about what he/she needs. You can do this by asking other people who have done business with your prospect, or simply by lurking around their social media accounts. A lot of people give the online world an idea as to their lifestyles and wants (for example – posting numerous pictures of fancy cars is a dead giveaway for a car enthusiast), so do your research.

To find out where your target clients can be found. People who have similar interests hang out in common places. Research and find out where comic book aficionados gather – and then go to these places to try and encourage them to visit your hard-to-find comic-book store. The internet provides a plethora of information about people. LinkedIn would have Circles, Facebook has groups, Pinterest and Instagram provides pictures of things which interest people. Educate yourself in order to save time and energy.

To find out what is the “latest.” No one wants to buy old – unless you are selling antiques or preloved goods. Find out what’s current, because even if you don’t agree, some buyers make purchases not because they need them – but only because they want to possess the newest, and whatever is “in.”

To find out what past clients are saying about you and your products and services. Perhaps the best reason to educate yourself, you MUST know if your former clients are dropping good words about you – or if they are already telling the online world to avoid your store because of unsatisfactory experience. Sometimes, you just need to type in your business name and you will see all the feedback or mentions your clients have said online about you. If you see anything unfavourable, then rectify the situation by contacting these disgruntled clients. Sometimes, you can completely turn around a bad situation, and turn your worse buyer into your best customer. And of course, when there’s a satisfied client, there is also a potential to get more referrals.