Referrals In A Hurry!

Everyone who knows me also knows I believe 100% in using referrals as a business building tool. It is the easiest and cheapest form of marketing – other people are doing your marketing for you!

There are added benefits to building your business using referral based marketing, apart from the obvious cost savings. You know yourself, when you ask your friends for advice and they refer you to a certain business or product, you trust their judgment and advice. It's the same with clients whose own friends referred you to them. You don't have to prove yourself to these new referrals… you've already proven yourself to their friend and in their eyes, you're already the expert.

So, how do you encourage existing clients, and past clients, to refer others to you? Well apart from simply asking them, there are other ways of building referrals – here are some tips:

1. I include a request for referrals at the bottom of my new client Welcome letters and on the bottom of each invoice – so there is a constant reminder and request for referrals.

2. Besides always including some small wording about referrals as above, you can do a special mailing in which you specifically ask for referrals from your current and past clients. You can consider a referral reward system. For every x number of referrals/clients who sign up, you can give a gift to the "referrer". Or for every new client referred to you by another client, you can reward your referrer with an Amazon gift certificate. People like to receive rewards. Another great time to ask your client(s) for referrals is when they compliment you and express excitement about some achievement they've accomplished thanks to you! That's your cue to tell them to let their friends know that if they also need this help, they know where to come!

3. If you have an office where clients attend, stick up a sign on the wall where clients will see it that says you appreciate their referrals. Make it large enough to read from a distance. Even if your client has never referred anybody to you, this will put the idea in their head!
4. Participate in joint referrals with associates whose business activity complements your own. If you refer YOUR clients to other people's businesses, there is a better chance that they will reciprocate and refer their clients to your business. You don't have to stick to businesses that are similar to your own – think about hairdressers, dry cleaners, travel agents, etc. You can do this with your clients as well. Promote them to people you know and they will be happy to refer people to you.

4. Leave your brochure and some business cards in a visible place (front desk) of businesses whose clientele might be interested in your services/products. Offer to do the same for the business where you leave your brochure/cards. (I also do this with "ad exchanges" – no money changes hands here – my business associates are happy to send out an ad of mine to their newsletter lists in exchange for me sending one of their ads to my list.)

5. If you don't have a formal referral reward system set up, do remember to send a special thank you card or small gift to the person who has referred a new client to you. If you are not appreciative of a referral and don't show your appreciation, you may not get a second one! Don't offer gift certificates to your own services or products – your referrers are more likely to appreciate it if you reward/thank them with other types of small gifts. In the past I have thanked my referrers with individualized gifts to suit them: an acrylic clock, a calculator, and a paperweight. However, you needn't spend a fortune on this – your clients will feel just as rewarded with an Amazon gift certificate, movie tickets – or even a box of chocolates!
For first referrals, I suggest a gift in the $5-10 price range. Choose something they can display in their office or home and if you can, inscribe it with something like "Deep thanks, Comprehensive Coaching U" (using your own company name, of course!)
When that person refers a second client to me, I follow the same format but this time, I send a slightly more expensive thank you gift – in the $15-20 range. (Notepad/calculators, emergency car kits, thermos, etc.)

Then, for each referral above this, I work in increments of 3. For each third referral, I bump the gift up. So, it might be lunch at their favorite restaurant, a weekend getaway, etc.
I don’t promote this program to my clients. I love to “WOW” them with the surprise gifts. I have found in about 9 months, this program really kicks in and referrals flow in. It is great fun for all, and I happily pay for a gift of dinner to have a new client.

6. Offer your clients and associates commissions on successful referrals – you can start an affiliate program. When you receive payment from referring other people's products or services, you don't mind making the referrals! You don't have to do this for every product or service, but you might like to pay a small commission on the first coaching session your new referred client receives.


7. Consider to do a free teleseminar and encourage your existing clients to attend and bring a friend! That gives you extra people who will be able to experience you without having been a client themselves, and who will talk about you to others. Offer them a gift for their attendance – perhaps a free e-book or special report. Give them an e-mail address where they can redeem their gift.

8. Another great way to build referrals is to do a promotional activity with a nonprofit organization. Find a charity organization that has a large member base – the types of members who would be most likely to use your services. You contact them and offer to do a special fund-raising activity. Maybe you can do a speaking engagement in which you split the profits 50/50 (and you can also sell back of the room products to increase your profit.) Or you can suggest if they would like to refer you to their members, you can offer their members a special discount and you will pay the organization a percentage of each member's fee. Sure, you don't make great heaps of money doing this, but it does showcase you to a whole new range of people – potential clients – potential referrers! And it's cheaper than taking out a full page ad!

My Goal Is YOUR Success!
Terri Levine, The Guru of Coaching SM
PresidentComprehensive Coaching U, Inc.
(877-401-6165) http://www.CoachInstitute.com

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