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Why Do People Refer?

Written by: John Jantsch

Article Overview: I get asked the question above plenty. The answer is really easy: People refer people, products, services and companies because they like to, it makes them feel good, it's just human nature.

Why Do People Refer?

I get asked the question above plenty. The answer is really easy: People refer people, products, services and companies because they like to, it makes them feel good, it's just human nature.



The problem with this question and its answer from a business building standpoint is that it's not that helpful.



The far better question is "who do people refer?" Answer that question and you will be more prepared to take advantage of this powerful marketing tactic.



People make referral decisions about the same way they make purchasing decisions. People decide something is the right price, fits, addresses their need - the logical part, and then, they determine they will look good, have more life, impress their friends - the emotional part.



Here's the tough part - they usually do it in reverse order - they get hooked emotionally and back it up with logic.




So, in order to have your business considered as someone worthy of a referral, you need to tap the logic and emotion formula - maybe in equal parts. In other words, people have to believe you can help, have a great price, and will show up as promised (logic), but, they must also feel good about helping you, trust that their friend will be treated well, and like the experience of doing business with you (emotion.) It's not enough to have a good solution. The firms that get lots of referrals have a good solution mixed with a fun or unique solution.



That's why money offerings alone for referrals are poor motivators. (In fact,cash may only motivate less than ideal referral sources ) Far better to work on making your business more likable, more referable, more energetic before you go out their and start offering any kind of incentive for referrals.



If you are not getting referrals naturally, you may need to focus a great deal of attention on cracking the logic and emotion code for your clients.



Now, you may be saying, this is a serious business, there's nothing fun about this business, well, then think of the ways that your serious business can make a genuine emotional connection with your clients and make that one of core elements of your business.



Once you have these logic and emotion parts down, then make sure it's easy to refer you - create tools, education, and follow-up systems and you are ready to rock the referral world.

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Article Tags: busine, business building, decisions, doing business, emotion, good solution, human nature, logic, marketing, money, motivators, offerings, referral sources, referrals, serious business, standpoint, tactic, unique solution



Related Forum Posts
Useful tips - I work for The largest fitness company in Australia so I can give you some tips. Some of the promotions they do are: *Sponsor kids school and give the parents a discount rate. *Refer a friend and get cheaper lessons *Raffle draws, These create leads which you can contact. ( you can team up with some local businesses and have people go in the draw to win a swimming lesson etc.) *give discounts to local businesses and their families *start something new and exciting, people may be bored with the lessons, I'm not sure what they are though *change instructors *advertise in the local paper about bring a friend deals These are my ideas, hopefully they were helpful.
Re: Kevin's Case Study #3 - Promoting something you can't try - I agree with ltrahan. People generally have to see it to believe it these days. I know I would want to.
Re: How can I use this forum to market my company? - Indeed this forum is a great place for your business promotion. People are looking into it seriously and i have been getting a lot of positive response.
Re: new at this and need to get moving - Hi Glenn, This is a good place to come for ideas. People are very open and willing to share. What is the product you sell?
Re: Five Personality Traits of Successful Business Owners - 1. Focus 2. Ability to Adapt 3. Hard Work 4. Good planning 5. People Skills


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