How much do referrals impact your sales process?

Some very smart people have responded. As the answers roll in, we’ll post the best answers with links back your websites here:
“Referrals are everything. If you are a sales person, always ask for referrals, whether you get that one particular sale or not. In my opinion, the value of referrals in a sales process goes up in direct proportion to the risk/cost/complexity of the product or service being sold. The riskier/costlier/more complex the product or service, the more a buyer will rely upon referrals to help them make decisions… and therefore the more you as a sales professional must focus on generating - AND EARNING - these referrals.” - Mark Seghers, CEO, ASK Insurance Consulting, LLC (http://www.askinsuranceconsulting.com)
“Your referrals are the show of your quality. They are the ones that really build your business.”
“I think referrals do work but they work better as part of an official referral program. I like to create a program that is mutually beneficial so it gives more incentive for people to give the referrals. They are much more willing to help you out if they get something in return. It also makes the process a lot smoother. Let’s say, for example, you’re selling technical services and you feel a little awkard asking for a referral from a particular client because things didn’t go 100% according to plan,(as things often do in any industry) - a few glitches in installation or whatever…..even if everything else went well this customer may or may not be willing to give you a referral. BUT if you have a program in place that can he / she can benefit from then that’s a different story. (This is a customer referral program I’m speaking of). There are also agent referral programs, which can REALLY be beneficial, if established and run properly. And depending on how the company wants to set it up, a customer can also be an agent.”