5 Strategies to Generate a Stream of Referrals

You may already know that referral marketing (word-of-mouth) is a powerful and cost effective way to grow your small business. Many entrepreneurs face the challenge of how to get referrals. Getting referrals should be thought of as a marketing system and not a one-time activity you do when need to generate sales.

A referral marketing system is a “viral marketing” strategy. Viral marketing encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message’s influence and exposure.

Your referral plan should answer the following questions:

1.  WHO would be a good referral? Do you know who your ideal client is?

2. WHEN are you going to ask for referrals – at the beginning or throughout the relationship? Do you have a system for testimonials?

3. WHY should someone refer you? If you don’t know what makes you unique why should anyone else? How will you handle clients that won’t refer you?

4. HOW do you receive referrals? Do you make it easy for others to refer you? Do you have a system in place to thank referrers?

5. WHAT is your process to turn each referral into a client?

A Referral Mindset

The foundation to building your business with referrals is the mindset you bring to your marketing efforts. One of the ways to creating a success-based mindset is the mindset of service. You should look to provide value to prospects each time you come in contact with them. You must believe that you have the skills and knowledge that can help others and be generous in sharing your expertise with others. Always do more than is expected of you. When you shift into this mindset of service instead of focusing on ‘closing the sale’, you will be more successful.  Get started with these 5 referral strategies:

Referral Strategy # 1 – Team 100

Each month, identify 10 professionals who serve the same target market that you do (not direct competitors!) or that sell complimentary products/services to your offering. Send a letter informing them about your services and that you would like to develop a referral relationship with them. Within 10 months, you would have contacted 100 people and created a network to generate a stream of referrals. Feel free to go at a quicker pace of course!

Referral Strategy # 2 – Get the Word Out!

Include a request for referrals on all your marketing materials and on every piece of communication: letters, invoices, quotes, faxes, emails, ezines etc. Some ideas are:  We appreciate referrals We thrive on referrals We gladly accept referrals Thanks for your referrals We crave referrals By referral only (you do not accept any clients unless they are referred to you)

Referral Strategy # 3 – Offer a Reward

Clients may refer you if they are happy with your service, even if you do not offer a reward. However, offering a reward can speed up the process! Rewards must have value such that clients want to get them.  One way to do this is to send them a list of options so that they have a choice. A reward of $25.00 is usually acceptable. Offer this in the form of a gift certificate (ie. Amazon) or a discount coupon for your services or for your information products (ie. e-books, ecourses).

Referral Strategy # 4 – Give them Tools

Often we ask others to talk about our services but we don’t give them any tools to help them. Make it easy for your clients to refer you. You can send them three business cards and brochures. Add a “With Compliments” slip and write “For when you are talking with work colleagues or friends…”. If you prefer doing this by email, send them a short introductory message that includes their testimonial, along with your brochure and a link to your website. Send this message at least 4 times throughout the year.

Referral Strategy # 5 – Help a Worthy Cause

By offering to help a worthy cause, you can increase referrals and at the same time improve your community. You can donate a percentage of all business acquired by referral to a non-profit agency. Non-profit agencies can become strong referral partners because if they benefit from referring clients, they may be highly motivated to provide referrals to you.

Copyright, Michele Hanson-O’Reggio. All rights reserved.

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