also: 6 things that might be wrong when referrals slow.
by sandi leyva
i’ve said there are many sources for referrals.
more small firm growth strategies: 5 ways to get more referrals | measure client retention … against yourself | take your client’s pulse
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here are three you might not have considered.
paid referrals: affiliate programs
there are many affiliate programs available through which you can earn a percentage of the sale you make. for example, intuit offers incentives as part of its affiliate program for referring its software to new clients.
http://quickbooks.intuit.com/product/about_quickbooks/affiliate_program.jsp
you can set up your own affiliate program to offer discounts on various parts of your services and products. 1shoppingcart.com has software that allows you to track affiliate sales and commissions, plus it helps you with accounting requirements by asking for 1099 information. (go here to find out more; this is my affiliate link with 1shoppingcart where i receive 20 percent for referring you: http://www.1shoppingcart.com/app/?pr=1&id=53779)
if you do offer financial incentives for referrals and you are a cpa, please check with your state and national licensing and membership requirements because there are some states with disclosure requirements or laws against this type of compensation.
also, please note the new ftc guidelines on disclosing affiliate relationships in advertising. http://www.ftc.gov/opa/2009/10/endortest.shtm
leads groups
leads groups are not really true referrals, but people do ask me about them.
many of you just starting your practice tell me you have had success with bni, business networking international. i believe it costs about $500 per year to join, plus the indirect cost of your time going to the weekly meetings and also meeting people for coffee in between the meetings.
leads groups work on a system of “forced” referrals, where you must think of someone to pass on to your peers in the group. groups like this are hit and miss, depending on the synergy among you and others in the group and your charisma and ability to convey your expertise. to get the most out of one of these groups, join right before tax season when everyone needs help.
if you are just starting your business, this may be a good option, but i would encourage you to try other lower-cost methods first.
digital referrals
if a client sends me a compliment via email, i will often reply with a request for a referral, or a request to be able to use the comment in my marketing materials as a testimonial. take every opportunity you can to turn a positive conversation or email into a business-building moment, but be careful not to sound too greedy or too salesy.
how can you get referrals from your website? the closest thing to a referral in the digital world is a testimonial. collect them and put them on your website. testimonials add a personal touch to an otherwise cold and digital place. an extra nice touch is to add the person’s picture next to his testimonial on the web.
if your referrals are sluggish
if you have been in business for a long time and are not experiencing any referrals, then something could be wrong:
- you might need to do a better job of satisfying your clients and going the extra mile with your customer service.
- your customers might not know how to describe to others what you do.
- your customers might not know you need more clients.
- your customers might be extremely introverted.
- your customers might feel your services are a competitive advantage and not want to share you with peers.
- your customers might selfishly want your immediate attention and not want you to take on any more clients.
the only way to figure out the answer is to ask your clients openly and honestly.
tip: don’t ignore the fact that your referrals are sluggish, if they are. take action to correct it.
when you implement these tips, the referrals will start flowing in, keeping your business pipeline full and marketing costs low.