Getting new clients by referral is one of the most effective, simple, and low cost ways to grow your business.  So how many referrals have you received lately?  How often do you ask for referrals?

It’s exciting to open an e-mail or pick up the phone to find that unexpectedly someone you know wants to introduce you to a potential new client.  Some people will give you referrals without you asking for them.  And while that’s great, it is an unpredictable situation.

Another relevant question is how many referrals have you given lately?  By giving referrals you understand the process better and demonstrate that it’s not only about getting.  And if you’re like me, you enjoy connecting people who can help each other.

The people you give referrals to may not be the same people who give you referrals.  The point is, what comes around goes around in its own way. 

In order for referrals to be an effective marketing strategy, you must create a structured system and stick to it.  This is the best way to generate referrals on a consistent basis.  Asking for referrals randomly or when you remember won’t cut it.

I know from my clients that sometimes they are reluctant to ask for referrals because they are afraid of being intrusive or pushy.  Find a way that feels right for you, and remember it’s just a question.  A great time to ask is when someone compliments your work. 

In addition, think about asking clients before, during, and after they buy from you.  Asking for referrals is like any other skill, the more you do it the easier and more natural it becomes.

WHO TO ASK

- Current clients

- People in your professional networks 

- Strategic alliance partners

WHAT TO ASK

This is actually very important and it’s not just about semantics.  Don’t ask someone this question: “Do you know anyone who might need my services?”

Why?  Because it’s vague and makes it difficult for the person to come up with ‘someone’ because you’re asking for ‘anyone.’

Make it easy for people to give you referrals.  Ask them something specific that is simple to answer.  Ask something like this: “Who is one business owner you know who may need help attracting more clients to his/her business?”  See the difference?

You need to be clear about the next step you would like the person giving you a referral to take.  You can ask them to make the introduction via e-mail and copy you.  Or you can ask the person to phone the person before you make contact.  Another idea is to ask the person to direct the interested person to your website to obtain some preliminary information.

HOW TO ASK

There are loads of opportunities to ask for referrals.  Decide what you feel comfortable doing and commit to taking action.  Think about asking for referrals:

* In person

* On the telephone

* In an e-mail

* Using snail mail (postcard or letter) and follow up with a phone call

In general people you know are happy and willing to help you by giving you referrals.  But, remember it is you who wants something so it’s up to you to check back about your inquiry.  People are busy and can forget about your request.  A friendly reminder can do wonders.

WHAT TO GIVE TO PEOPLE WHO SEND YOU REFERRALS WHO BECOME CLIENTS

Many times the people who send you referrals will let you know.  But that’s not always the case.  That is why you must ask everyone who contacts you how they heard about your business.  That way you are always able to thank people who give you referrals. 

There are infinite ways to thank people who refer clients to your business.  Be creative and come up with things that are valuable to them.  Here are a few ideas:

> One of your products for free

> Free additional services

> Recognition for them in your ezine or blog

> 2 for the price of 1 to an upcoming event

> Training or education to the people who give you referrals

When you know the people who give you referrals well, you can share more personalized gifts like:

> Concert tickets

> Coffee or tea with a cup

> Gourmet food basket

> Designer chocolate

> A relevant book

> Movie passes

> Restaurant certificate for lunch or dinner

Gift or no gift, at the very least do say thank you.  Pick up the phone, send an e-mail, or drop a handwritten note in the mail.  If you like referrals, and want to keep them coming, be sure to thank the people who send them to you.

Are you starting to see how creating a referral system is an easy and effective way to grow your business?  Give referrals, ask for referrals on a consistent basis, and thank everyone who sends you referrals.  And discover how attracting more clients has never been so fun!

© Stephanie Ward, 2008

WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER OR WEB SITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to set their profits on fire!  Grab your FREE copy of the special report ’7 Steps to Attract More Clients in Less Time’ plus business building tips, at: http://www.fireflycoaching.com.

Do you experience periods of feast or famine in your business?  Do you only think about marketing when you realize you are running low on clients?  Do you have some steady clients but you’d love to have more?  Or are you still struggling to barely reach your key business goals?

If any of these situations describe you, and you are serious about making some changes, I have an idea for you.  First, a few more questions.

Be honest, how much time do you spend on business development, activities to sustain and grow your business?  How often do you take action to develop your business?  Do you do it randomly whenever it occurs to you?

If you are like many business owners you are planning to do it later, when you have more time, after you have finished all of the urgent things you are doing that keep you so busy.  How’s that working for you? 

It won’t happen unless YOU make it happen.  The key is to plan it and do it consistently.  You’ve probably heard this quote from Einstein before and it is worth repeating here – “Insanity: doing the same thing over and over and expecting different results.”

So what will it take?  I am asking you to spend one entire day, each week (even better if it is the same day each week) on business development.  This will allow you to avoid distractions, stay focused and get into the flow of what you are doing.

If you can’t set aside an entire day, you can break it up.  Just make sure you are spending at least 20% of your time on business development which means you will need to track how much time you devote to it.

If you are a solopreneur it is up to you to do this.  If you realize that you haven’t been doing enough business development, and you know you never will, consider outsourcing.

If you have employees, you can choose to be the one to do this or you can delegate it someone else.  No matter what, it must be done and done consistently. 

Spending one whole day on business development every week will force you to rethink how you are spending your time.  You will need to start thinking about creating solid systems and leveraging everything you do so that you can get more done in less time.

You never know, you may even discover that there is much more business than you ever realized and that it is time to add more people to your company! 

So what are effective business development activities?  Here is a short list to get you started:

1. Contact prospective clients with your offer (direct mail, e-mail, call).

This one is rather obvious and yet we somehow always find a way to avoid it.  Be courageous and get into action.

2. Ask existing clients if they can refer you to new business.

Existing clients are hopefully happy with your products/services otherwise they wouldn’t be clients.  Because of this, they are likely to want to help you if they can.  It’s your move to ask.

3. Check in with previous clients.

If you are on good terms with inactive clients you can ask them if they may be interested in your products/services again or you can offer them something new.  You can also ask if they know other people who may be interested in your products/services.

4. Contact potential strategic alliance partners.

These are companies who sell different products/services than you do and whose clients fit with your ideal client profile.  

5. Develop a new product/service and promote it.

A new product/service may be attractive to new clients as well as to existing and inactive clients.

6. Contact groups/clubs/associations about speaking for them.

It is critical that you select the groups carefully.  Be sure that the members of the groups fit your ideal client profile.  Speaking is one of the best ways to let people experience you and what you offer, gain credibility, and build your status as an expert. 

7. Place an advertisement in a publication that your ideal clients read.

To be effective, run the ad at least 8-11 times.  A one-time ad will not do much for your business.

Here are some things that will keep you very busy and may NOT help you grow your business:

- Cleaning out your files

- Talking about how busy you are

- Thinking about what you could do and not doing it

- Reading books with great ideas that never get implemented

- Buying more books with great ideas that never get implemented

This is about of working ‘on’ your business not just ‘in’ it which is required to create a long-term, sustainable business.  Are you up for the challenge?  Sure hope so, your business depends on it.  It’s time to get cracking and make it happen. 

(c) Stephanie Ward

WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER OR WEB SITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to set their profits on fire!  Grab your FREE copy of the special report ’7 Steps to Attract More Clients in Less Time’ plus business building tips, at: http://www.fireflycoaching.com.