Christian Business Networking Association

How do you develop a successful referral program?

Everyone knows word of mouth is the best form of advertising...if you can get it. One often overlooked source to light a fire to your word of mouth business is your current client list.

Do you have a referral program that stimulates referrals from your clients? What works? What does not? What are key elements for most referral programs.

Do you need advice or have questions about referral programs?

Share your ideas and questions here.

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Permalink Reply by Steve Thalls on February 20, 2009 at 3:35pm

The first golden rule of getting referrals is TO ASK for them. You may think that silly, but many of my clients (befor they became clients) didn't ask. There are a couple of great times to ask and the best is when your client has a "WOW" moment (you do give them WOW moments don't you). As you get in the habit of asking, create a script, then measure it's results change it slightly and test how that works. Over the course of a couple of months you will have a simple script that works.

There is no right answer to the question, "Should I pay for referrals?" Every business has a different answer. You need to be understand your clients and their attitudes about the subject. I would be happy to pay, but I have found my clients like to help me out and I have trained them to do it with referrals.

Steve Thalls
Business Coach

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Permalink Reply by Mark Winebrenner on September 28, 2010 at 11:32am

I agree Steve. We all should have some "trigger" in the sales/customer service process that reminds us to ask for those referrals. It may be easier at times to ask for some form of recommendations vs. a referral.

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Permalink Reply by Teri Capron on July 7, 2009 at 8:14pm

I think the best way to get quality referrals is to build relationships and trust. It is much easier to help someone with their referrals or to ask them to keep their ears open for what it is you're looking for if you listen and learn. Also having good business practices with existing clients and (going above and beyond to help them) often provides referrals. I know this is how I've been been blessed with referrals in my business over the past 19+ years.

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Permalink Reply by Mark Winebrenner on September 28, 2010 at 11:30am

How do you build that relationship?

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Permalink Reply by Bob Hutt on September 7, 2010 at 1:19pm

As salespeople and managers, we all hope for that one big sale that is going to change our lives, improve our standard of living, enable us to spend more time with families, or maybe enjoy a luxurious vacation that has only been a dream.

If we want to increase our opportunities for success, we need to continue to discover and develop new business prospects.

There are three ways to get new clients.
1. advertising
2. cold calling
3. referrals

Of the three, referrals may be the most powerful. Referrals open doors! How do we get referrals?
Business networking is the most valuable way to locate new prospects. You may already belong to several civic, social, charitable, or business organizations. Are you involved? Do you attend meetings regularly? Do you volunteer to chair an event or act as host/hostess for an occasion? If you aren’t active in any such organizations, select three and get involved.

There are three reasons why people will not give you a referral.
1. They don’t know what you do.
2. You haven’t demonstrated trust, worthiness, or credibility.
3. They don’t know what is in it for them.

Here are some recommendations for effective business networking.

Arrive early and stay late to meet 8 new contacts.

Sit or talk with people you don’t know.

Get to these people before they have the chance to pair off with people they already know.

Shake hands web-to-web and no more than 3 times.

Volunteer to serve as host/hostess for the event.

Seek out guests, it makes them more comfortable and you more memorable.

Always remember your business cards.

Write notes on the back of business cards you collect about the people you met, maybe their style: A, B, C, D, 1, 2, 3, 4. People want to be remembered.

Go with another person, but split up when you arrive. Meet again at an appointed time to introduce each other to people you have met.

Introduce your new contacts to people you know. This helps them build their business. (What is in it for them, remember?)
Be a leader it builds trust and credibility.

So what happens after the meeting or event?

Take those business cards, sit down and write a brief note, sharing how much you enjoyed meeting them, a few lines about how your business has helped other businesses like theirs (they don,t know that you do), and then designate a definite time that you will call them to share prospects for each other.

Be sure to close with a sentence that addresses them again by their name either at the beginning or at the end of the sentence. Mark your calendar and follow through. If you ask them to make a commitment to receive your call, don’t fail to call them. This builds trust and credibility. Finally, if you make a sale or develop a new relationship with someone to whom you were referred, remember to write or call the individual who referred you and thank them.

Remember, 80% of all sales are made after 5-7 contacts. Yet, 48% of salespeople make only one contact, 25% make a second call, only about 17% make a third call. 90% of all sales are made by 10% of all salespeople.

Contact the people in your network regularly, schedule lunches or networking parties, and remember to use technology faxes, E-mail, and phone mail to stay in touch!

When you network effectively, you attract more clients, make better decisions, energize your business, generate publicity and build a great reputation.