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."
8 Roads to More Referrals - To learn more about this author, visit Donald F. Pooley's Website.
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Donald F. Pooley
(Visit Donald's Website)
Don Pooley, the author of this article,
allows you to publish
it if you include these credit lines:
Copyright 2005, Donald F. Pooley, Inc.
Don Pooley CLU, CFP, CHFC, "The
Advisor's Advisor" has shared
his marketing know-how with audiences of
life insurance men
in all major Canadian cities, London,
Australia, Chicago, New
York, San Francisco, Hong Kong, and
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