Referral marketing is infinitely more powerful than a list of sales leads. In fact, some companies find that as much as 70% of their new business is gained through referrals from existing customers, partners and business contacts. Quality referrals are the primary goal of business networking within u.s. referrals.
Where do sales leads fall short?
A sales lead is simply a name of someone who may be useful to you or who may require your products or services. Most of the time they are not “pre-qualified”, the person may not necessarily need what you can offer right now, and they may know little to nothing about you and your company.
Referral vs. sales lead
A referral, on the other hand, is the opportunity to do business with someone who potentially needs your products or services and is expecting you to contact them.
The person who has referred you (the referrer) will know what services or products you provide and must trust you enough to recommend you to others. They usually have a relationship established with the person/company to which they refer prospects and know or have asked questions to determine if their need is immediate.
So it just makes sense if someone has a need for your product or service and you have been recommended to them, they will be receptive to you when you contact them. If on first contact you appear to live up to your reputation then you almost certainly will get the business.