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8 Roads to More Referrals

Written by: Donald F. Pooley

Article Overview: According to one study 86% of surveyed customers would refer their broker to their friends, yet only 12% were ASKED .

8 Roads to More Referrals

According to one study 86% of surveyed customers would refer their broker to their friends, yet only 12% were ASKED .
Another study found that a referral is up to 15 times more likely to do business with you than a cold prospect.
TIP's survey confirms these studies. The top technique is Referrals from clients, and non-clients. And the book, Business by Referral by Misner and Davis, reveals more.
Their survey, The Most Effective Ways to Generate Referrals , of 2,350 business professionals produced these ratings:
1. Networking groups...................... 81%
2. Ask orally.................................... 72%
3. Ask in writing.............................. 33%
4. Incentives.................................... 23%
5. Seminars/Speaking..................... 21%
6. Recognition................................. 19%
7. Internet/online service................... 8%
8. Subscribe to referral service........ 2%
Networking groups can be sub-divided into:
* Casual-contact networks: members from different trades, and professions, e.g. Chamber of Commerce;
* Strong-contact networks: only one member per profession, meet to exchange leads;
* Community Service Clubs: such as Rotary, Kiwanas, etc.;
* Professional associations: single industry groups (CMA);
* Social/business groups: dual purpose combining business with pleasure, such as the Jaycees;
* Women's business groups: paralleling old-boys networks.
As no single group will serve all your needs, they suggest joining more than one, but of different types.
Asking orally and in writing , is best done with an open-end phrase such as "Who do you know who...?" that invites the listener to suggest names. It will garner more leads than "Do you know anybody who...?" which can be answered with a yes or no.
Incentives can range from a simple oral thank you, all the way up to monetary rewards based on business generated.
Online networking is a new and rapidly growing source of referrals, as there is an Internet site for almost every subject, where people interested in it exchange opinions. Use a search engine to find a few you like, and join in.
Referral services are nothing more than paid advertising on demand, requiring the prospect to initiate the contact, which is why it has such a low effectiveness rating.
Business by Referral provides you with a systematic way to generate more referrals, and make more money. And promises:
"YOU'LL NEVER, EVER HAVE TO MAKE ANOTHER COLD CALL."

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Need free advertsing? Get profiled in your local paper! - Need free advertsing? Get profiled in your local paper! Of course the question is...how to do that! My local paper (Daily Press, Hampton Roads, VA) has a business setoin in which they have reports about local businesses - the military (that's a big thing here in Hampton Roads), the shipyard, but also articles on small businesspeople. On Jan 6, for example, thre was a front-of-the-section article profiling 5 entrepreneurs and their success stories, written by a reporter whose email is included with the story. I think these days, all reporters have their emails included with their articles. So I'm thinking to myself... how do these reporters find businesses or people to profile? Do they do all the searching themselves, or do businesspeople email them with a press release, hoping that they'll get some coverage out of it? Now, I don't think that'd work with my webzines, considering their subject matter (although when I get my Women in Aviation site up to a respectable amount of content, I might try something with that), but people who sell T-shirts, sports stuff, etc.... would this proactive approach work for them?
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