The foundation of any word-of-mouth marketing effort is people.  Your sphere of influence represents the overall number of people with whom you network. These are people you know either very well or as casual acquaintances.  To evaluate your sphere of influence, take inventory of the people you already know. Surprisingly, many people have never established effective networking relationships with others they’ve known for a long time.  Preparing your inventory is as simple as asking yourself, “Whom do I ...

If you’re looking for creative ways to give referral incentives, it’s worth considering a technique I like to call “Incentive Triangulation.” This is a powerful way of leveraging other people’s services to benefit your customers, clients or patients and reward those who refer you.  The concept is simple and can be designed to fit the needs or requirements of any business. For example, a retailer might negotiate an arrangement with another local business, such as a florist, printer or ap...

When one of your business relationships passes you a referral, don’t assume that the prospect is ready to hear a presentation on your product or service. When an associate passes you a referral, say thanks . . . then start digging for more information. You will want to determine whether what you offer is a fit for what the prospect needs.  Taking the time to do this upfront saves a lot of time and energy–for both you and the prospect. Exactly what does the prospect do? What products or services does ...

Over the past couple of weeks, I’ve written a few blogs on the VCP Process® of networking and, since I’ve already covered visibility and credibility in detail, today I’m going to tell you what you need to know about profitability, the third and final phase of the VCP Process. The mature relationship, whether business or personal, can be defined in terms of its profitability. Is it mutually rewarding? Do both partners gain satisfaction from it? Does it maintain itself by providing benefits to bo...

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...

One of the most important things I’ve learned over the years is that the secret to success–without a little bit of hard work–is still a secret!  Word of mouth marketing is a solid foundation for building any successful enterprise and, like anything else that brings great rewards, it takes time, effort, and dedication (a.k.a.–a “little bit of hard work” ). Developing a word-of-mouth marketing program is an effective, potentially lucrative way of generating more business.  The rea...