Referral Marketing

7 Tips To Increase Your Referral Business

2007-03-15T21:08:00.001Z

Referrals are the best way to grow your business. Without referrals, your business will not endure. You are "dead in the water" so to speak. Here are some tips to ensure that you get the referrals you need for your business:

1. If your customers perceive that you want or need more referrals, then you will get them. Many clients have the idea that your customers come through advertising of one form or the other. Some may get the impression that you are always extremely busy and really do not need any referrals. Even though they themselves were referred to you does not matter. If your client is not directly involved with any kind of selling activity, then they will not understand the very important need there is for referrals.

How do you overcome this problem? You must educate your contacts and clients that you do,indeed, always welcome referrals. Make sure to plant seeds in your client's mind whenever you can. Let them know how excited you are about a new account you have that was recently referred to you.

2. If your clients feel comfortable enough with you, then they will refer more business your way. In other words, your client must have enough confidence in their judgment about you. Be sure to relate as many success stories as you can that you have brought about for your clients. Make sure you are punctual when you deal with people. There is nothing worse than being late to a call! Return all calls promptly and if you belong to any organizations, be consistent in your participation. This behavior will be equated with trustworthiness by potential referral sources.

3. You will surely get more referrals if your clients know how to refer business to you. It is your job to provide ways for them to do so. It is always a good idea to ask your clients to call any referral they give you so that they will know to expect your call. What would even be better is to ask your client for his or her referral to call you. In that way, the interest in your product or service is already there.

4. If your clients know how you can be of benefit to others, then you will definitely get more referrals. You can improve your position by making sure that your clients understand all of the ways that you can help your customers. You can accomplish this by taking an interest in their business or life and then adding your own comments about what you are doing. Very often you will get a response such as "Well, I did not realize that"!

5. If you make sure to thank your active referrals enough, then your will get more referrals. As a rule of thumb, make it a habit of thanking a referring party three times. First, give them a verbal thank you both when you receive the referral and then after contact has been made with the referral they provided. The second time you should thank then in writing. And last but not least, you should thank them with some small gift after you complete your project. Use the "thank you" process in order to keep your referrers informed about the progress you have been able to make with the referral they gave you. They really do want to know what the outcome of their actions are.

6. You will make sure to get more referrals if your past contacts and clients do not forget about you. It does absolutely no good if your client is confronted with an opportunity to refer more business to you and they do not remember you. Always try to stay in touch with your client base. You can do this by telephone, mail and any other communications that you produce. You should not let more than three months elapse without them hearing from you.

7. If you understand why it is that your clients give you referrals, then you will gain more referrals for your business. In most cases, your client is not really trying to benefit you but the party to whom they refer you to! This is important because it is a major shift in attitude from you to how you can help others. It makes your client look good when when someone they referred to you is helped.

One of the very best ways to get more referrals is for you yourself to become a source of referrals. If you are viewed as a good referral source, then most people with reciprocate!

Ken Harrington is an expert at helping small businesses gain the referrals they need to grow beyond what they previously thought was possible. To find out more about this advanced follow up and customer referral system, visit http://www.FirstUpMarketing.com

Reciprocity The Key To Riches

2006-12-29T01:36:00.000Z

What's reciprocity got to do with referral marketing? It is pretty simple. If you want to receive - first you need to be willing to give. So, at all those business networking meetings you attend you need to give some referalls before you can hope to gain any in return.
It turns out that reciprocity plays a pretty big part in the human psyche. There is an inbuilt requirement to return (reciprocate) what we receive. It is a concept that is explored in this article from Chris and Ted Morgan.

Reciprocity The Key To Riches

? Copyright 2005 Chris & Ted Morgan

Main Entry: rec?¡èi?¡èproc?¡èi?¡èty
1 : the quality or state of being reciprocal : mutual
    dependence, action, or influence

Main Entry: 1re?¡ècip?¡èro?¡ècal
1 shared, felt, or shown by both sides

Main Entry: re?¡ècip?¡èro?¡ècate
1 : to give and take mutually


If reciprocity is not in you, you cannot succeed in any
business venture. When it is in you, you have the law of
nature on your side.

The law of reciprocity always leads us to success. It is your
guarantee of your endeavors?? successes. The laws of nature
always work, just like gravity & magnetism.

To get the law of reciprocity in your life, it is as simple
as, knowing it, applying and acting on its principles. Yet,
even though most of us know of it, we don??t follow through
to apply and act on its principles.

To streamline your business you will need an online presence
as well as an off-line presence. Each reflects each other.
This is your first vital attempt at adding reciprocity to
your business.

The next vital component to consider is Leverage.

Main Entry: 1le?¡èver?¡èage
1 : the action of a lever or the mechanical advantage gained
    by it
2 : POWER, EFFECTIVENESS <trying to gain more political
    leverage>


Network marketing is the most effective use of leverage in
business there is! If you are using it, it can make you
rich! Your riches will be tied to the exponential growth of
YOUR customer/prospect base (YOUR database/list).

Where most fail building lists, is not having TOTAL CONTROL
of their lists. They think that sending their prospects to
their affiliate links gives them total control of the list.
Not true for a couple of reasons.

When you join an affiliate program you become a distributor
of that company, so in essence you are not working YOUR OWN
BUSINESS, you??re working your upline??s business, the one
that signed you up (your sponsor).

Secondarily, you need to really read their company??s TOS
(terms of service), it clearly states that you will only get
commissions on prospects you send through your affiliate
link and ultimately purchase their products/services, and
only the products/services that you are entitled to receive
a commission.

You get the commission, but the big winner is the company
because you added your prospect to THEIR list, not your own
list. I think that??s kind of sneaky, don??t you? I suggest
that you begin building and bonding YOUR OWN LIST.

By the way, this is your second way you can use reciprocity
as a tool to further bond with YOUR OWN LIST and grow your
business. All of your revenue you receive in network
marketing will be residual (ongoing revenue).

Sidebar: I am not saying that affiliate programs are bad
and to not use them (I use them from time to time as well as
using my own products/services); I am saying be aware of the
hidden dangers of working your business on assumptions and
not fact based, as apposed to working your business from
factual knowledge.

What I am about to reveal to you is not new by any means,
but is necessary for you to apply this principle to be in
line to receive more riches in your life than you ever
dreamed possible. ?¡ãYour riches are tied to what you are
passionate about; it is tied to what you love.?¡À

This is so critically important it bears repeating.

?¡ãYour riches are tied to what you are passionate about; it
is tied to what you love.?¡À

I truly believe this is the most beneficial aspect of any
business?? longevity & ultimately its prosperity. If you
build your business around what you??re passionate about,
then all you need is for you to SERVICE YOUR LIST. Your
business list will be all those that have mutual
dependency in what your business stands for.

Until you understand & begin to use marketing in your
business, you have alienated and lost all touch with your
target market.

Main Entry: mar?¡èket?¡èing
1 a : the act or process of selling or purchasing in a
      market b : the process or technique of promoting,
      selling, and distributing a product or service

Main Entry: 2market
1 : to expose for sale in a market

As I mentioned earlier, your market have demonstrated a
clear interest in your business and what it stands for and
have a mutual dependency for it. To market to those in your
market, it??s easier to sell to them when it is their idea to
purchase.

People hate to be sold, so don??t sell, market to them.
Knowing that, you need to have away to entice your prospects
to making a purchase.

This is how marketing works. All you do is make yourself
attractive; make not- buying the last thing your prospect
wants to do. This tactic works well, give your prospect
free samples.

I sell lemonade so my main product is lemonade. I set up my
stand and sell popcorn & salted roasted peanuts at the
bizarre. I give away free samples of the nuts & popcorn as a
teaser.

On a hot day everyone likes popcorn or roasted peanuts, when
they smell it they got to have it, and more than that, they
can??t get enough of it. Salt makes them thirsty so I provide
ice-cold lemonade. Get the idea?

Be bold, build your business from passion; build and bond
with YOUR OWN LIST & make it a point to continue building
your list every chance you get; your market will be those
that have a similar passion for your business and find it
can provide what they are looking for; offer free samples
and market to your targeted market.

-------------------------------------------------------------------------------------
--
Chris & Ted Morgan says, Start your Successful
business building the right way. Ask for our free CD & report that
shows you how. http://www.master-mind-marketers.com/
Chaos 2 Cash (24hr)Recording 1-800-931-4906 Ext.54

Word Of Mouth Works So Treat Your Clients Well

2006-12-01T09:00:00.000Z

While word of mouth recommendation is certainly not entirely the same as referral marketing, there is no doubt that without word of mouth you are missing out on huge referral opportunities. The following article describes just how powerful word of mouth can be.

My website was recently mentioned on the Dr. Phil website as one of the top ways to make money online by becoming a Virtual Assistant. It is amazing how traffic from a television show like this can boost your service sales overnight. I never would have imagined it but here I am booked solid for the next two months with no room for new clients until the New Year! As a Virtual Assistant for many years, anticipation of this day has always been in the back of my mind pushing me more and more every working minute to achieve this success. I am here, YEAH! So many have asked me, how did you get on the Dr. Phil show's website?

Word of mouth. I have a monthly retainer client who is a coach that I have been working with for about 3 years now. I have always went over and beyond for this client, giving my extra mile in all the work I do for him. If he called on Friday at 5pm right minutes before my closing hours and needed another ½ hours work in an emergency, I would typically get it done for him. However, he has always respected my time and never abused it.

This client also happens to work in an industry wherein many of his colleagues have Fortune 500 businesses and many other unique connections and networks throughout the business and press world.

One day I got a call from one of his clients he referred me to work with who asked me "in 4 days, one of my clients is going to be on Dr. Phil show and they need their website to be ready for it, can you do it?" The first thing I thought was "NOWAY! There is just not enough time to pull this off" yet instead, I mulled it over for a few, asked her a few more questions and said, "sure, let's get this done for you!" I had 4 business days to make this work and yes, I worked my weekend to gain a few extra hours forgoing a Saturday night out at the movies to put more time in for this client. It was hectic and tiring but in the end, everything came together as planned and worked for my clients.

The first couple of days I spent on making their website more usable. I changed the navigation around to make it easier for the user to surf their way through to find the content they were looking for. I re-organized their storefront to funnel in the visitors from the Dr. Phil show and entice users to buy their books easier. This helped my clients make extra money from this high traffic flow. I also set up a strategic newsletter signup area to collect names for their database for future marketing ventures. In a nutshell, I made their website become something that was more usable and would easily convert into dollars for them.

The last couple of days were spent on publicity and marketing to others online to come and watch their show on Dr. Phil at the end of the week to help their ratings. To do this meant we needed banners all over the place online like yesterday! Yet how could I get banners in such a short time period? That was when I realized that the website itself still didn't have any sticky power and I needed that to keep people at the website to eventually entice them into buying product. Sticky power is anything from contests to articles of interest that keep your readers attention at your website to discover everything you have to offer to them. People love information on the net and what better way to keep them on my client's website than to feed them lots of relevant information (articles) to their desires. Being that the traffic from this Dr. Phil show would all be related to working moms, I decided to ask other high traffic websites that target towards working moms to let me put my client's banner on their website and in exchange, I would put their article with their contact information on my client's website. My client would get more traffic through the banners to watch them on Dr. Phil show and my colleagues would get exposure to their business by people reading their articles from the high traffic from the Dr. Phil show. It was a win/win for both.

In the end, not only were my clients thrilled with my work but my business colleagues whose articles were used to help out in this marketing plan were smiling as well. The high traffic from this television show filled everyone's email boxes to the brim with inquiries and sales. We even had over 30,000 votes on a contest we were offering.

The success of this marketing plan put my services as a Virtual Assistant in high demand. On a business level of success, I could not have asked for more. I can now pick and choose my clients and what a wonderful feeling this is.

All this occurred because of one thing. Word of mouth. Want to be remembered by someone else as a Virtual Assistant? Then always go that extra mile:

When they say "it can't be done!", you say "Let's start at noon today!"

When they say "we need it done in 2 weeks", you say "Here's your completed project, done 3 days early."

When they say "Can you do it for $50 per hour?, you say "Yes and if you pay for 10 hours in advance, I'll throw in free faxing and long distance calls."

Go the extra mile for your clients and reap the rewards with more business which means more money in your pocket!

Tawnya Sutherland, founder of Virtual Assistant Networking (VAN) http://www.vanetworking.com and author of The VAS System, a Virtual Assistant Start-up System, is a Certified Internet Marketing Specialist sharing her expertise to help aspiring and successful VAs turn website clicks into cash for them.

Referral Marketing Blog

2006-11-18T12:45:00.000Z

All referral marketing still needs publicity. Check out our RSS news fed blog - Referral Marketing Blog.

Networking - Build your personal network for business success

2006-11-13T22:51:00.000Z

It's hard to be in business today, certainly in the professional services sector, without having heard the term 'networking'. Regarded by many as the Marmite of business, it is said that you either are a networker or you aren't. And if you think you aren't, you shouldn't even try to do it.

Rubbish!

First of all, networking is essential to any business - whether offline or online. The business you get from personal recommendation will be some of the best business you ever do - they have pretty much made up their minds to use you before they even call you, and they are a lot less concerned with price. And it's not just for solicitors and accountants - when your pipes burst, how did you decide on a plumber to come out and fix it? Was it someone you had heard good things about before? Maybe you didn't know anyone, so you called a friend and asked if they knew a good plumber? Joe Bloggs Plumbers just won the business of fixing your pipes through networking.

A good way to look at it is not as 'networking' but as 'word-of-mouth marketing'. Because it is part of your marketing mix - how's your advertising? Local papers? Spot on radio? Good, good. PR? Interview on local news this week? Fantastic. How about promotions? Give aways? Offers? All sorted? Great stuff. Got a website? Optimised for the search engines? Lots of enquiries from it too? Brilliant.

And how about your word of mouth?

Not enough people concentrate on generating referrals and getting people to mention their business to others. Millions of pounds of business is done every year through referral and recommendation. If you're not getting any of it, you need to think long and hard about why not.

So you've got yourself to a networking event, you tell the people there about what you have to offer, and then ask if they want to buy it, right? Wrong! If you do this you have become the person at a networking event that everyone wants to avoid - the one handing out business cards like they're dealing a poker game; the one who asks you nothing and tells you more than you could ever want to know about what they do.

So how do you do it? The best way to network is to build trust, build relationships, to think about what you can do for the other people in the room before you think about what you might get. Be a 'people person', be genuinely interested in the people you meet at events. Great networkers want to help as well as get help - because they like helping others, not just because it might get them some business in the future.

Networking is about building a relationship that eventually leads to business being done, either between you and your new contact, between you and someone they recommend, or between them and someone you recommend. Don't discount that last one - they have to get something out of your relationship as well, otherwise it isn't a relationship. If you help them get more business, they will do the same for you - in fact they'll feel obliged to.

Where can I network?

The short answer is absolutely anywhere! Remember Joe Bloggs Plumbers, the guys who fixed your pipes? You don't find many plumbers at networking events, but they still get referrals. Networking happens when you talk to your colleagues at work, when you go to the pub with your friends, it happens when you overhear a conversation in the bus queue. Networking is about the impression you leave people with, and you make impressions all day, every day.

Of course you will make more effective contacts for referrals at specialised networking events, but remember there are several different kinds of events you can go to. Some of the most established are breakfast meetings, which usually start around 7.00am and finish around 9.00am. Meetings are usually weekly and the format is very focused and regimented. For those who like this format, there is a lot of business to be done, but it is an acquired taste. Try it out, but bear in mind whether or not you can keep up with the regular early mornings and very formal structure. Also, most breakfast meetings are restricted to one person from each business sector, so you are not as likely to meet people you can form alliances and joint ventures with, which is a very important, and often overlooked part of networking.

There are also several different kinds of event organised by groups such as local government organisations, such as race days, golf days and others. These can be a lot of fun, but are very often filled with people who are there for the golf rather than to do business, and you may have to kiss a lot of frogs to find your prince. Networking events are really a matter of preference and perspective, and you should go to as many events as you can at first, and then stick with the ones that work for you.

In summary, there is a simple and effective way to network that anyone can do:

1. Get to know people as people, not prospects.
2. Everything happens after a meeting, not during. Always, always follow up.
3. Give referrals as well as expect to receive them.
4. Keep in touch on a regular basis.

Best of luck with your networking!

Education is the Key to Effective Referral Marketing

2006-11-13T13:14:00.000Z

Copyright © 2006 John Jantsch

One of the few complaints I hear from small business owners when it comes to generating business or leads by way of referral is that too many of the referrals they are offered aren’t a fit for the business. The referrals are either unqualified, don’t need the firm’s offerings, can’t afford the product or just don’t fit the typical profile of an ideal client for the receiving firm.

If this is your referral reality, then you know that chasing leads that don’t fit your target client can be a grand waste of everyone’s time and energy. The primary reason for this affliction though is that most small business owners and independent professionals don’t take the time to educate their referral sources.

The typical referral request may go something like – “know anybody that needs what we do?” Okay, I know lots of people, here you go. Have at it!

The solution to this is really quite simple. I’ve created a tool I call the Perfect Introduction, as part of my Referral Flood program. The Perfect Introduction is a document (although is can take many forms including a web page) that contains answers to the following questions.

How would know if I spotted your ideal client?

Describe, in great detail, the type of clients you work best with. This step will help assure that you get highly qualified leads and make it easier for your lead source to think of prospects that fit a narrow description.

What would I say to best position your business?

Give your referral source the exact words you would like them to use when introducing your products and services to prospective referrals. Give them a simple, memorable way to explain the benefits you have to offer. Remember, many of your best referral sources may not be actual clients who can talk eloquently about your brilliance, give them your core marketing message so that the expectation they set remains consistent.

How can you add value to my relationship with a referred lead?

This is a multi answer question. Show your prospective referral source what you do to make them look good and outline any offer you might have cooked up to reward and motivate your referral sources. By the way, money isn’t always the best referral motivator. Showing appreciation, helping referral sources meet their goals, and making referral sources look good are all powerful motivators.

What do you do with the leads you receive by way of referral?

Outline the exact steps you take when you receive a name or introduction. This step allow the referral source to get comfortable with your marketing process. Everyone has some fear that the referred party may abuse the relationship by hard selling or calling every night at dinner time. Put these fears to rest by outlining your very educational approach. (That is your approach, right?)

Now that you have your Perfect Introduction document in hand you can go out there and confidently let the world know that you are someone they can feel great about referring.

Another very powerful aspect of this tool is that often, even if you don’t realize it, you are in competition with others who are seeking referrals. CPAs, for instance, are heavily targeted by service professionals seeking referrals. With your referral process outlined in a very professional manner, you will stand out in the referral competition for some of the best potential referral sources.

And Now a Powerful Twist

Once you have created your Perfect Introduction you should also consider using this tool to open doors with potential referral sources. Send a letter to 100 targeted referral sources with a copy of your Perfect Introduction and a blank Perfect Introduction form. Inform the recipient that you have clients and prospects that you believe could benefit from their products and services. Ask them to complete the enclosed Perfect Introduction form (using yours as an example) and send it back to you as soon as possible. Do this and you will find new referral marketing doors swinging wide open for you. In addition, you will be better prepared to give referrals to your clients and prospects, kicking the referral cycle into even higher gear.

John Jantsch is a veteran marketing coach, award winning blogger and author of Duct Tape Marketing: The World's Most Practical Small Business Marketing Guide published by Thomas Nelson - due out in the fall of 2006. He is the creator of the Duct Tape Marketing small business marketing system. You can find more information by visiting http://www.ducttapemarketing.com

Creating a Referral Marketing System

2006-11-04T19:56:00.000Z

Creating a Referral Marketing System
Author: Diana D'Itri

System (s s t m) n.: An organized and coordinated method; a procedure.

A. There are many reasons referral systems are important. These systems primarily help your mindset, and your mindset is the first step in creating a solid positive change.

Referral system implementation delivers the following benefits:

· Proactive referrals recruitment
· Customer assistance, relationship and loyalty development
· Sequential increase of referrals year-over-year
· Referral tracking and data-base development for future campaigns
· Lower cost per customer (CPC)
· Saves employee time and company wages
· Maximum return on investment
· Improves message penetration

Referrals are valuable but many businesses and marketers still think of them as happenstance and not as a serious marketing medium. This is a myth, and we need to be enlightened to the fact that, much like having a gym or personal trainer helps you lose weight, the proper referral system makes referral marketing a priority and after a while, it becomes second nature. We learn to take the necessary steps with every new customer, to ensure that they will tell others about our products and services.

The definition of a referral system is a repeatable procedure that you put into place and build on year after year. It's a process you form with people and businesses that will have a positive influence on your company and it will bring you profit and growth opportunities.

B. To start a referral system, begin with a commitment to learn what referral strategies work best within your industry.

Cherry Creek Investment Advisors Inc. originated with a referral plan. The founders started out several years ago as an investment advisory firm that provides personalized and performance-oriented financial services for its client base. It has grown from zero to $80 million in assets, all through growth originating from a referral system.

Implementing a quality referral program not only develops your referral business and increases sales, but also saves you money on marketing and advertising. Statistics show that referrals can offset advertising as much as 20, 50 even 100 percent annually, consistently. And if a business is 100 percent referral-based, it’s ad spend is practically nil.

C. The core objective that every business referral system must have is ease of use and seamless integration into existing sales and marketing structure.

And when you build your referral system in a way that lets people feel good about referring you, you will tap into the master human motivation. People want to pass on a smart buy, a new find, a great experience - in part because it makes them look and feel smart, or whatever that thing is that makes them look good. Any successful referral marketing effort you engage in should give your referral source this kind of motivation. With a successful referral system, you can bet your business needs some amount of the following:

Buzz - People will refer things that are new enough to be a find but solid enough to be known by “those in the know”.

Met Expectation - People want to be sure that their expectations will be met – and the expectations of those they refer to you.

Value - Your referral system should be set up to reward your referral base and acknowledge each referral as it comes in. People won't continue sending referrals if you don't acknowledge their effort.

D. Remember, referrals bring money into your business without the hard sale, and when a business sets up its system to reward customers for referrals, rewards are reciprocated as those customers become an extension of the sales force.

Referral marketing significantly challenges traditional marketing methods when a business implements the right online and offline tools. The rewards and benefits are undeniable. Investigate all available resources to determine what type of referral marketing system works best for your business and industry. No matter what system you choose, it really comes down to assisting people in being able to share “what is so great" with others.

About the Author:

Diana D’Itri is the Exec VP of Ravebiz, a leading referral marketing and technology company. She’s a key driving force behind educating clients on how to generate more quality referred customers through practical applications and an automated, web based system called the Rave APG eReferral.

For a free download “31 tips for boosting referral business” go to http://www.ravebiz.com. Diana can be reached at (866) 284-3020 or email her at diana@ravebiz.com

I Hate Asking for Referrals! – 6 Proven Methods for Getting a Flood of Referrals Without Asking

2006-11-02T17:15:00.000Z

Copyright © 2006 David Frey
Yes, I admit it - I hate asking for referrals - don’t you? Be honest. Doesn’t your heart start to pump faster and hands start to sweat even thinking about asking a customer for a referral?

If you’re like me, you hate to impose on others. Asking for names of friends or family members almost makes you feel as though you’re selling a multi-level marketing opportunity.

Not to worry. There are many ways to get a continual stream of qualified referrals without having to go through the painful process of asking for referrals face-to-face.

The secret to getting referrals without asking for them is to develop referral systems that do the asking for you. Here are six innovative systems for getting referrals without asking.

Referral System # 1

Make a list of people / businesses that sell complimentary products and services to your own product or service. If you sell athletic shoes your list might include health clubs, running clubs, basketball teams, or podiatrists. Now create a referral program that pays referral fees for people that are sent to you by your referral partners.

To make this system more effective, give your referral partners customized coupons, tickets, or cards that the referral brings with them to your business so that you can correctly track each referral source.

Referral System # 2

Approach charities in your local area to get a list of donors that already give to the charity. The United Way is a good place to start. Most United Way donors make advanced pledges or set goals to give a specified amount to the United Way.

Now approach the executive sponsor of the United Way donation drive and make a proposal. Propose that for every referral that is sent from their organization to your business, you will take a percentage of your sale and donate it to the United Way (or whatever charity they are affiliated with) in their name.

Referral System # 3

Local churches are always looking for innovative ways to raise money to sustain the programs they offer to their members. Most churches would be enthusiastic about the opportunity to receive a donation from you or your business.

Simply call up the ecclesiastical leader and ask if you can meet with him/her to talk about a potential fundraising activity. Propose that for every referral (church member) they send your way, you will donate a percentage of the sales to the church. In return, the church should agree to promote your business.

This same referral tactic can be done with the booster clubs of local sports teams, Boy Scout troops and other organizations looking to raise money.

Referral System # 4

The fourth referral system is very simple. Give your products or services away (or significant discounts on your products or services) in local raffles. In my hometown of Friendswood, Texas the local Ford dealer gives away a brand new truck in a 4th of July raffle through the local Chamber of Commerce.

The tickets sold in the raffle go towards paying for the cost of the truck and the dealership gets to display the new truck for several months leading up to the raffle in high-profile areas provided by businesses that are members of the Chamber of Commerce.

In fact, we found our financial planner through a raffle offered through the local Boy Scout troop. We "won" a full financial analysis and eventually purchased some of his products as a result of the raffle.

Referral System # 5

Most everyone has a barber or hairstylist they use on a frequent basis, especially if you have children. I don’t know about you, but my barber always engages me in conversation during my haircut. And most barbers and hairstylists are very happy when you give them a $2 - $3 tip. Do you see where I’m going with this?

Why not approach the local barbers and hairstylists and offer them $1 for every referral card they pass out to their customers. You might even motivate them to talk up your business by promising them a percentage of each sale that results from their referral.

Referral System # 6

The last referral system will not only bring you referrals, but will also create a lot of goodwill. I learned this tactic, strangely enough, by Princess Diana and a local real estate agent. When Princess Diana died a close associate of hers was interviewed and revealed that Diana always carried a set of "royal" thank you notes.

Every time she met with someone she would remember their names and as soon as she got in her car she would write a short thank you note to them. The people cherished the thank you notes they received from the Princess. After hearing that, I started to carry around my own box of thank you notes.

But here’s what really will make this referral tactic take off. Not long ago I received an email from a subscriber to my Marketing Best Practices Newsletter that had this phrase under the man’s signature:

By Referral Only

By Referral Only...means: We invest 100% of our time and energy to delivering first-class service to our clients. As a result, our valued clients, suppliers, and friends refer their family, friends and work associates to us for advice on buying or selling real estate. We're interested in building strong life long relationships one person at a time.

You see, its not enough to send a thank you note. People need to know that you want and appreciate their referrals. The phrase, in essence, answers the question, "What can you do for me in return for this nice thank you card?" Immediately, I had this phrase printed on the bottom of my thank you notes and my referrals took off.

Conclusion

Each of these referral tactics that I have shared with you are s-y-s-t-e-m-s. They motivate others to generate referrals for you without you having to play the role of the beggar and asking for referrals face-to-face.

The best thing you can do to excite your referral partners is to get them to experience your product or services themselves. Then they can talk about it with first-hand knowledge. It will not only make them more credible to others but once they've experienced the benefits of what you have to offer, they will be more excited to tell others about it.

In the referral systems that require you to pay referral fees, make sure you pay quickly, honestly, and with gratitude. Always give your referral partner the benefit of the doubt. If you treat them right, you will be the benefactor.

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David Frey is the author of the best-selling manual, "The Small Business Marketing Bible" and the Senior Editor of the "Small Business Marketing Best Practices Newsletter." To get your free lifetime subscription visit http://www.MarketingBestPractices.com

How referral marketing success is like a chocolate soufflé

2006-10-28T19:33:00.000+01:00

<h2>How referral marketing success is like a chocolate soufflé</h2>

Highly Contagious Marketing

http://www.judymurdoch.com/workbook.htm

Chocolate soufflés and referral marketing may seem like an odd

combination (unless, perhaps, you're a restaurant owner) but

like a chocolate souffle, there is a recipe you can use to

develop a successful referral marketing program.

If you're intrigued, read on.

Chocolate souffles are one of the world's great desserts.

Usually served with whipped cream, soufflés are humble brownie's

fluffier, fudgier French cousin.

When you make brownies you mix chocolate, eggs, vanilla, sugar, a

little flour, and maybe chopped nuts all together and spoon the

batter into a square pan. 25 minutes later at 350 F, you have a

pan of brownies.

The ingredients you use for brownies are quite similar to a

chocolate souffle. Unlike brownies, you need to egg whites beaten

just so and you need to carefully combine the egg whites with the

chocolate mixture so that the egg whites maintain their

fluffiness. Done correctly you get a light, fudgy souffle. Done

incorrectly you get a flat, gooey brownie.

A successful referral marketing program also depends on having

the right ingredients, the right timing, and the right skills.

Your customers will refer you when they believe doing so will

make them look good. There are four essential "ingredients" or

elements that help people feel confident that they'll look good

when they refer you. These ingredients are:

1. Novelty. We all love to let people in on a secret; to "be in

the know" about a new product that does a much better job than

anything else on the market.

2. Utility. Put simply people have to feel that they need what

you sell.

"Need" is a relative term. Almost everyone needs shoes. But

only a very small number of people need pink satin slippers with

1" kitten heels. Still, several shoes designers have made a

fortune catering to this market segment.

3. Dependability. If your referral sources believe that you will

meet or exceed the expectations of the customers they refer.

4. Economy. Your referral sources believe that the benefit they

get from your product or service is easily worth what you

charge.

When your customers are your referral sources, they will use

their experience doing business with you to determine whether

these elements are present.

If your customer feels that, yes, your product or service is

sufficiently novel, useful, dependable, and economical, they will

want to send you referrals.

But the right ingredients alone do not insure a success referral

marketing program.

Some support is also required on your end to help your customers

send referrals. However much they may love you, most folks

aren't "marketeers" (which is why referral marketing is so

effective to begin with) and may struggle to come up with the

words to describe what makes you so special.

Providing your customers with a catchy, memorable message and

perhaps a small token such as a pen or some other novelty, will

help them remember you when referral opportunities arise and will

give them the words they need to inspire others to seek you out.

If your souffle is a gooey mess there are two potential causes:

1.) you didn't use the right ingredients and 2.) you didn't

prepare the souffle correctly because you lacked the tools or

skills.

Similarly, if you're not getting all the referrals you can

handle, there are two potential causes: 1.) Your customers don't

perceive enough novelty, utility, dependability, or economy to

feel they'll look good if they refer you or 2.) You haven't

provided with a message and other tools that make you memorable.

---------------------------------------------------------------------

Judy Murdoch helps small business owners create low-cost,

effective marketing campaigns using word-of-mouth referrals,

guerrilla marketing activities, and five-star strategic

alliances. Judy can not make a chocolate souffle but she can

help you develop a successful referral marketing program.

To download a free copy of the workbook, "Where Does it Hurt?

Marketing Solutions to the problems that Drive Your Customers

Crazy!" go to http://www.judymurdoch.com/workbook.htm

You can contact Judy at 303-475-2015 or judy@judymurdoch.com

Affiliate And Referral Marketing, The 21st Century Silk Road - Part 1

2006-10-17T23:48:00.000+01:00

Affiliate And Referral Marketing, The 21st Century Silk Road – Part 1

The Silk Road, which was started many centuries ago, has

evolved into Affiliate and Referral marketing. Now we have

the opportunity to efficiently and effectively move

products and services over a 21st century trade route.

Our ability to establish and pre-measure a market before we

even produce a product has never been greater. Through the

use of the network-marketing model and affiliate marketing

we can now establish virtual distributorships in almost any

country.

For many years the MLM marketing model has taken a lot of

serious hits and ridicule. Upon serious examination since

1990, when I was first introduced to the idea, I find this

model offers the greatest advantage for effective and

efficient distribution of products and services. There

needs to be some tweaking of the system, but overall, I

envision it as a major part of global commerce in the near

future.

No other system allows you to build a distributor base of

consumers, who can be polled before a product is released

as to its’ market potential and also serve as the

distribution system. With advanced knowledge of potential

sales, the logistics of production and delivery can become

a relatively simple and efficient process.

During the era of the Silk Road there were many dangerous

physical challenges to meet, ultimately they proved too

much to overcome. With the new technology that we have been

given, we are in a position to re-establish the trends that

were started centuries ago. Trade, art, religion and

culture in general flourished along the Silk Road.

Different peoples lived in relative harmony and

productivity. I am proud to pursue the completion of that

idea.

As before, there are a lot of people who would like to

maintain the status quo and they do not hesitate to work

vigorously through subversion, against the evolution of

this new system. There are also the internal enemies of

greed, guile and lack of understanding of the coming

developments.

Those of us, who participate in this adventure, must

understand the significance of what we do. Many would be

net workers only see the opportunity to turn a quick

dollar. Although through cooperative effort, the time

required for success is greatly diminished, we need to be

aware of the long-term stability we must build into these

systems.

Drawing people into systems in which 95% fail, is not a

foundation to build upon. With the technology that exist

today, it is not essential for everyone who becomes apart

of the system, to learn marketing or become a marketer.

Cooperative participation through contributing their hard

earned funds to the system should be enough.

Let those who suppose that they know what to do and how to

market, harness this cooperation to everyone’s benefit.

About the Author:

Ronald Patterson is an experienced home business researcher

and is currently building a Global Cooperative based on

that research. Visit his Website: http://thetradegroup.ws/

Why Referral Marketing Programs Fail

2006-10-17T23:46:00.000+01:00

Why Referral Marketing Programs Fail

Highly Contagious Marketing

True or False: Referral marketing is the easiest way to get the

word out about your small business? The answer is...

FALSE

Don't feel bad if you answered, "true." Most people do.

So often, I've seen someone start a new business, with the

assumption that their friends and colleagues would send lots of

new business their way. Three months, sometimes six months later,

these new business owners are still waiting for the phone to

ring. And even if the phone does ring, only a small percentage of

those calling end up converting to real paying customers. Sadly,

many of these businesses don't make it.

The owners of these failed businesses aren't dumb or naive. Many

have owned successful small businesses in the past or had

successful corporate careers. They know how to get things done.

So what's going wrong? Why do referral marketing programs so

often fail to produce results?

First, business owners simply don't ask for referrals. Often

this is because the business owner assumes that others "know"

they need more customers. Unfortunately, the folks outside their

business often assume the opposite; that if a business owner

isn't asking for customers, they probably don't need any! It's

easy to see how this dynamic undermines the referral marketing

process.

Business owners may also resist asking for referrals because they

think they're "bugging" people or haven't earned the right to

ask for referrals.

Regardless of the reason, the consequence is the same: if you

don't ask for referrals, you won't get them.

The second reason referral marketing programs fail is because

when we do ask, we leave it up to our referral source to figure

out who to send us. So often, we ask for referrals in a vague,

general way ("uh, do you know anyone who needs my services?").

Asked in this way, people almost always say, "no, can't think of

anyone." Why? Because they're running through their mental

contact list, a list so large for most folks, that they rarely

think of someone specific when asked.

The third reason referral marketing program fail is because

people forget your request. Let's say someone has agreed to send

you referrals and they are completely sincere in their desire to

help you. Unless they immediately call the person they want to

refer to you, chances are that they will forget because they're

busy and there are more urgent things demanding their attention.

Unfortunately, if they don't remember you, they won't send you

referrals.

At this point you may be thinking, "Sheesh, this is harder than I

thought, maybe I should tattoo my company logo on my forehead

after all," don't be discouraged. With the right skills,

know-how, and a little creativity, your referral marketing

program can thrive. Read on for strategies that will take the

number of referrals you receive from "blah" to "VROOM."

Four strategies to getting more referrals:

1. Don't assume anyone knows what your business needs. Ask for

referrals.

2. Understand why people give referrals and, in particular, why

they will give YOU referrals.

Put simply, people give referrals to look good.

Think about when you are the referrer. Have you ever referred a

friend to your favorite restaurant and your friend ends up loving

the place? They probably thank you every time they see you and

you feel pretty great--like you let someone in on something very

cool and special.

That's why people give referrals for everything--plumbers,

realtors, pediatricians, electrical contractors, you name

it--they get to be a hero in a small but significant way.

3. Make it easy for people to refer you.

To send you referrals, your referral sources need to remember you

when opportunities arise and they need to know what to tell the

person about your business. For example, compare these two

referrals:

"My friend, Ann is a realtor"

"My friend Marion is a realtor who will buy your house

if it doesn't sell within 90-days."

See the difference? Which is more memorable? In a tough seller's

market, who would you rather refer? If this were all I knew about

the two realtors, Marion is the one I'd refer.

4. Follow up and acknowledge.

If you assume people don't care whether or not you say thank

you, you assume wrong. When you call your referral source and let

them know how your meeting went with the prospective customer

they sent you, it reinforces their involvement in your success

and their ablity to make things happen.

In addition, sending a note of appreciation regardless of whether

the referral works out, encourages your referral source to send

more.

When done right, referral marketing is, without a doubt, the most

inexpensive AND most effective way to get the word out about your

small business. Although it requires more of your time upfront in

terms of planning, developing a strong message, and educating

your referral sources, remember that--every dollar--every

minute--you spend on your referral marketing program will pay for

itself many times over in terms of the high quality new business

you attract.

---------------------------------------------------------------------

Judy Murdoch helps small business owners create low-cost,

effective marketing campaigns using word-of-mouth referrals,

guerrilla marketing activities, and selected strategic alliances.

To download a free copy of the workbook, "Where Does it Hurt?

Marketing Solutions to the problems that Drive Your Customers

Crazy!" go to http://www.judymurdoch.com/workbook.htm

You can contact Judy at 303-475-2015 or judy@judymurdoch.com

Referral Systems Are Pure Small Business Marketing Magic

2006-10-17T23:44:00.000+01:00

How would you like to increase your business 1300% in less than a month while spending next to nothing? I spoke to one of my clients today to check in on a marketing strategy I gave to him - and he had multiplied his business 13X. Is he psyched? Of course, and now he has the problem of figuring out how to deal with expanding his business. We should all have such problems.

Wanna know how he did it?

My client owns a small martial arts school. He just started a kids program and enrollment is ok. I helped him set up a referral system. Less than a month later his kids program has increased 13X. On top of that, some of the parents that are bringing their kids have signed up for the adult classes. The net gain is actually above 1300%. He now has to add extra classes and expand his space to accomodate the business.

I can't think of too many small businesses that couldn't benefit from a referral system. I am working on another one with one of my clients who owns an auto garage. I am putting one in place for my own coaching pracice. I love referral systems because they are one of the least expensive ways to gain new customers.

What makes a referral system a system is that it's ... well ... systematic. It encompasses steps that you repeat - when x happens I do y. It's something you do as a rule, you set your referral system up as a policy. And it is easily trackable.

What makes a good referral sysytem?

Your customers know that you expect referrals. You don't want to pressure your customers to refer, but they should know that's how you're building your business. Some people don't give referrals simply because they don't think about it.

Reward for referrals. Give your customers thanks for referrals and you will increase the number of times they refer. This may be the only part of the system that costs anything. You may be able to reward clients in a way that costs nothing too. My martial arts instructor client runs a contest and whoever gives the most referrals in a month wins a prize.

Make it very easy for referrals to do business with you. Maybe referrals get a discount the first time they buy from you, or they get a free trial. Giving out referral coupons with the referrers name on them is a great way to track and reward referrals.

You must provide amazing service. People are not going to refer their friends if you aren't stellar at what you do. It's unfortunate how many businesses don't get that great service is so unbelievably important to their success.
Look for ways to build your own referral system. Be creative but avoid being pushy.

J D Moore - Marketing Comet
Small Business Marketing Coach
http://www.marketingcometcoach.com
read my blog - http://marketingcomet.typepad.com