2) Warm leads - these leads are to people who may have an interest in your product but more importantly they have a relationship either with the agent or someone the agent knows.

 

3) Hot leads - these people have expressed an interest in the agent's products and will meet with him to discuss purchasing the product. these are the best leads to have.

 

Referrals come when someone we have done business with tells someone they know about our products. When we contact them the fact that there is a mutual connection between us allows the agent to give a presentation and possibly make a sale.

 

Referrals can make our lives so much easier. Not only are they more likely to be warm leads which are met with less resistance for new customers but they are much cheaper to come by than the leads you have to purchase. An agent who does most of his business by referrals will find that his cost to do business will be a lot less than an agent that has to rely on leads.

 

Here are 5 tips on how to increase your referral business;

 

A) Always ask for a referral - In every situation, whether you sell your product or not, always ask for a referral. Find out if people know someone who can benefit from what you have to offer.

 

B) Keep good records of all people you do business with and those you want to do business with - following up on all your contacts will help you to remember to ask for referrals. If a person doesn't become a client they can still be a good referral base.

 

C) Thank those who give you referrals at least once a year- Remember days that are important to people (birthdays, anniversaries, etc.) and they will remember you.

 

D) If a referral doesn't purchase a policy from you today, stay in touch; he may tomorrow - never take no to mean never. It just means not now.