Mavaric’s founder, Lara, preaches this to EVERYONE if she has the chance, so you might very well have heard all of this before today! But regardless, these ten truths need to be repeated again and again.
- Do you understand the concept of referrals? Referral marketing is about leveraging trust from one person to another. It is inherently the purest form of business honesty you can have. Referral marketing is NOT just some scam to bring in business for free.
- Some people might think that referral marketing occurs organically. But fewer than 10% of referral business ‘just happen.’ It’s a fact: People don’t want to talk about you or your product at parties and they don’t want to run around telling all their friends how great you are.
- Some businesses don’t formally measure results. If you don’t have a formal process to track referral leads, my advice is to implement it right now.
- Some businesses don’t report on the results of the referrals. You need to show the person who referred somebody to you what the result was (especially if there is commission owing). You also need to know at a glance who referred who and where each person is in the sale process.
- Some businesses don’t ask for referrals. It’s unbelievable, but nearly all businesses are too scared to ask the simple question, “Could you please give me a referral?” Ask nothing, get nothing.
- Maybe the timing of your request for referrals is not spot-on. If you ask for a referral before the relationship is strong enough, then you don’t have much chance of success. However, ask at the right time and you will see that this really works.
- Some businesses run campaigns that rely solely on referrals. Referral initiatives are there to SUPPLEMENT other marketing initiatives, not REPLACE them. Referrals should be part of the campaign, not the campaign itself.
- Some businesses don’t make a referral process part of their day-to-day business process. Referrals should be a part of your life, not an occasional flurry when your business is having a bad month.
- Some businesses let the referee down. Someone puts their name on the line for you and you don’t have the courtesy to follow up on it. Or worse, you provide shocking service to the lead. This is not good for business and you’ll lose both the referee and the lead.
- You don’t offer commission or are unwilling to pay for leads. For goodness sake, this is BUSINESS! Business is about money. Referral commissions are the most critical of all of them. Amazon.com is built on referrals ― that’s what makes them number one in the world!
Welcome to the new age of World Micro Business Domination. Ask for referrals and you might get none. Ask for five referrals… you will get three. Being vague gets you nowhere. I find being clear makes a huge difference.
Do you have a success-story with referrals that you’d like to share with us? Or do you have any questions about this matter? Let us know on the Connect page.