Why It Helps to Have a Good Referral Network

by Money Making Ideas on April 26, 2009

It takes a lot of time and energy to build a business from the ground up, especially if you do it on your own, this is why it helps to have a good referral network. Rather than thinking of yourself as out there on your own why not think of some ways to create a network of people that you are happy to refer business to and who, in return, will be happy to refer business to you.

Building a good referral network should start with the group of people that you already know, if you can get them to understand your product and the services that you offer and who can then refer others to you who are looking for what you have to offer. Once you have a good network there will be no more cold sales calls because a network will refer people to you. Once you have educated those around you, your clients, colleagues and people that you meet at various sales conferences. When these people know enough about your product then they will be able to direct others towards you.

When you start building your referral network you should decide what incentive you will offer to people who refer you new clients. To begin, you should offer new individuals to the network a small referral fee for bringing in new people to your business. Many sales people are motivated by the commission check that they receive, offering an incentive will motivate people to refer you more business more often. A powerful referral network will do almost all of your marketing for you.

Don’t be scared to ask. If you please your clients beyond their expectations, they are more likely going to want to help you build your business. If there is a discount or a referral fee at the end of it, then they will be even more delighted to help you out. If you want to increase your business and create a powerful network then you must be proactive. Try to not waste time by waiting for people to send business your way, just ask directly for referrals, most people will happy to help out, especially when that help is reciprocated.

If you are not comfortable in asking for referrals, try something that I do, write out what you want to say and then practice saying it into a mirror until you are comfortable with it. When people see that you are comfortable in asking for their help then they are often more than willing to give it and this is a good way of building up a powerful referral network.

If a client compliments you on your product or service then ask them for a referral, this is the best time to do so. They will probably be more than happy to refer someone to you when they know that your product or service is what they are looking for. If you stick with it in this way, you will quickly have a powerful referral network that will increase your sales exponentially.

Related posts:

  1. Running on Autopilot With a Referral System – Improve Your Sales
  2. Customer Referral Programs Made Easy
  3. A Referral a Day – How To Increase Your Sales
  4. The Most Bang For Your Buck - Getting Referrals
  5. Referral Software Now Affordable and Effective

Leave a Comment

Previous post: Niche Socializer – Next Generation of Facebook

Next post: Get Your Employees Bragging - Word of Mouth Campaigns With the Inside Track