There are several problems you run into when a business asks you for references before green-lighting your proposal or hiring you:
(1) Your references may be irrelevant. For instance, I have clients in niche businesses, for which I've done great work, but what does someone in the swimming pool supply business have to say to a senior executive at a financial company? Can his experience be generalized, across industries?
(2) Let's say you have a perfectly relevant reference, but it's a competitor. What, then? By giving out his name, you have a great chance to offend both people, at once!
(3) What if your reference should be very strong, but you performed your work a few years back, and there is a new management, in place? They didn't work with you, directly, so what can they be expected to say?
(4) What happens when you've pitched a small deal to a small company, but your references are from big deals that you did with big companies? Are you going to have someone potentially offend your million-dollar reference when a more modest $10,000 deal is in the offing?
(5) Why is the person asking for a reference, especially if you've been in business for years, and possibly, you have a strong and public reputation for integrity? Have you sold "value?” Is the prospect shifting the responsibility for being sold to your past customers? Is the prospect trying to learn about your methods, for free, by chumming it up with someone who has already paid the bill?
Past performance is not a slam-dunk predictor of future performance, in any circumstance, so if the prospect is seeking to reduce his risk by contacting references,
To reassure, and to close the deal, I think it makes more sense to craft and to offer a performance guarantee, than to rely on references. With a guarantee, you're saying your involvement will be effective, or the buyer is off the hook; you and the program can be terminated.
How can a reference compete with that assurance?
Dr. Gary S. Goodman, President of www.Customersatisfaction.com, is a popular keynote speaker, management consultant, and seminar leader and the best-selling author of 12 books, including Reach Out & Sell Someone® and Monitoring, Measuring & Managing Customer Service, and the audio program, "The Law of Large Numbers: How To Make Success Inevitable,” published by Nightingale-Conant. He is a frequent guest on radio and television, worldwide. A Ph.D. from USC's Annenberg School, a Loyola lawyer, and an MBA from the Peter F. Drucker School at Claremont Graduate University, Gary offers programs through UCLA Extension and numerous universities, trade associations, and other organizations in the United States and abroad. He holds the rank of Shodan, 1st Degree Black Belt in Kenpo Karate. He is headquartered in Glendale, California, and he can be reached at (818) 243-7338 or at: gary@customersatisfaction.com