Referrals are an extension of Networking. If people like you and like sound of your product or service, then there's a good chance they'll tell other people about you.
If they already use your product or service and are totally satisfied, then there's also a good chance that they'll recommend you to others.
However, that won't always happen - people won't necessarily go around singing your praises to other people, unless someone asks them about you.
You can, however, take various actions to improve your chances of getting referrals:
*Ask people - Ask your existing customers if there's anyone else they know who could use your product or service.
*Ask if it's okay to contact them - and if it's okay to use their name
*Ask them - if they'd be kind enough to refer you to other person
*Ask if it's okay to check back - and find out what other person said. (This encourages person you're speaking to - to refer you)
*Offer incentives - Offer free product, a discount or a prize to an existing customer who refers you to a new customer. e.g. If I bring a new member to my health club, my name is entered into a draw for a new car
*Offer a "finders fee" - to anyone who finds you new business or donate money to their charities
*Have a referral form - This needs to be a simple document that you hand out to customers or give away at events or even post to people. It needs to say something like - "Who do you know who could use our product or service?" Then leave some blanks on form for details. Mention what incentive or reward is for them to do this.