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HOW TO GENERATE A REGULAR FLOW OF GOOD QUALITY REFERRAL BUSINESS (16/11/16)

of Kiwis still rely on the recommendations of other consumers in making their purchasing decisions Global Nielsen Internet survey.

Creating a steady and profitable flow of referrals shouldn't be left to chance. Good referral networking is a planned and deliberate action that involves identifying people with whom you may have a mutually beneficial relationship over many, many years.

Before setting out to be a deliberate referral networker, be clear on your answers to the following questions:

1. What value will you offer people who refer business to you?

To receive, you must learn to give. Referrals are not a one-way street. It is important to reciprocate with referrals from your end, or to at least offer some other form of value.

Other types of 'value' you could offer may be the benefit of your time, expertise, labour, mentoring and encouragement or even just a regular 'thank you' lunch. Learn to 'give' if you want to receive.

Financial incentives rarely work because some people may feel it compromises their professional ethics, integrity or relationship with the person that they are referring.

2. Who is your ideal client?

To develop an idea of who your ideal client may be, review all of your existing clients and select the best or top three as a starter for your 'ideal client template'. Why are they your best clients? What are their demographics regarding gender, age, position, industry type and attitude etc.?

Never identify your target market starting with the word 'anybody'. Be specific, even if you have four or five client personas on which to base your ideal client template, and remember you do business with people not companies.

3. What does your ideal referral partner look like?

The ideal referral partner is somebody who shares the same target market, but whose business is complementary to yours.

For example, if you're in IT software support, then a company that sells the hardware will make a good referral partner because you can cross-pollinate when it comes to referrals. If you're a web designer, then a company in graphic design or an SEO/Google Adwords provider should be part of your team.

Lawyers, accountants, insurance brokers and real estate agents work well in the property sector.

4. Stay in constant contact

Contrary to the old wives' tale, 'absence does not make the heart grow fonder'. The higher your visibility with the people who refer business to you, the more referrals you will receive.

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