The key concept in referral marketing is relationships. The system of information, support and referrals that you assemble will be based on your relationships with other individuals and businesses. Referral marketing works because these relationships work both ways: They benefit both parties. A referral marketing plan involves relationships of many different kinds. Among the most important are those with your referral sources, with prospects these referral sources bring you and with customers you recruit from the ...

1.  Arrange a one-to-one meeting. Meeting a referral source in person is an excellent opportunity to learn more about his business and interests. Prepare some questions in advance so that the conversation flows smoothly. Be ready to give an update on your business and to ask lots of questions about your source’s interests. 2.  Extend an invitation. Invite a referral source to a networking event. Introducing her to other businesspeople you know gives your source an opportunity to meet others in your targe...

Entrepreneurs can be very creative in their enterprises. Camp Jabulani in the Kapama Game Reserve just outside Kruger National Park in South Africa is a great example of this. I had an opportunity to spend five days there last week and was truly amazed.  Jabulani has six luxury suites with massive wooden sliding doors and floor-to-ceiling screened-in windows that make up the walls of the suite (photo to the left). These walls are covered at night by canvas. During the day, you have the feeling you are in a luxury...

Last week I gave you a list of actions you can take to strengthen your relationships with your referral sources. I promised that in the next few weeks I would give you some more information on each action. So, since we all love it when things are easy, I’ll start by giving you further details on the six simplest actions you can take. 1.  Send a thank-you card.  Always a nice gesture, a handwritten thank-you card makes a great impression, especially in this age of electronic communication. Be sure to writ...

To be an effective networker, you should always be working on strengthening your relationships with your referral sources.  So, what’s the best way to do this?  It really depends on the referral source and what he or she responds to.  There are a number of actions you can take to build good will and credibility in your relationships, and the list below contains an array of examples.  Of course, this is not an exhaustive list, so you should feel free to add your own actions to it. Send a thank-you card. Sen...

Let’s say that upon getting a business referral, you simply take down the name and contact information of the potential customer from the referral source. Sometime later, you call the prospect and introduce yourself: “Hello, Ms. Prospect, my name is John Businessman. Larry Source recommended I call you.  I’m an accountant . . .” Handling referrals this way, as you might expect, gets minimal results.  Your chance of converting the referral into a customer will be greater if your referral sou...

Inviting prospective referral sources to an event you’re attending, hosting or participating in as a featured guest, exhibitor, panel speaker or award recipient is a great way to enhance your contact with them and build credibility. If you’re not inviting your prospective referral sources to events, you’re missing out on a great opportunity to keep them informed of activities you’re involved in. When the event is one where you have a chance to share your expertise or where you are being reco...

Last week I posted a blog on the benefits of turning to your network for advice. It’s also very important to remember that everyone benefits when you give valuable advice to your network. Think about how you can give your prospective referral sources valuable advice related to your specialty or profession, such as advance notice of a change in procedures that will affect them, tips on how to initiate the changes they will need to make, or other information that can help your network members achieve satisfact...

Have you ever purposely sought advice from your network members?  If not, you should definitely take advantage of this opportunity because we all need advice at one time or another and seeking advice from your network is a win-win situation. You see, people like for others to listen to their opinions and advice.  By inviting your network members to talk, you can get better acquainted with their knowledge, decision-making ability, and attitudes.  Receiving someone’s advice also gives you a perfect reason to c...