When your referral marketing plan is working well, prospective customers buy from you the first time because they have been referred by your sources. They may continue to buy from you because they trust you and develop a good relationship with you.  But whatever the reasons they come and whatever the reasons they stay, they are your customers primarily because they need your products and services. A clear idea of your range of products and services is something your sources need to communicate to prospects. For each...

Developing an effective word-of-mouth strategy that results in a strong referral-based business takes endless time, energy, effort and, above all, commitment. The actions and steps necessary to create a successful referral-networking campaign are simple, yet far from easy; they take tremendous dedication and drive, and results can be a long time in coming. So why should you put forth the time and effort to develop a word-of-mouth strategy for your business?  Because, if you commit to doing it right and don’t g...

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...

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 ...

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...

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...

One of the friendliest and most natural ways to make contact with a referral source is to buy her products or services, whether in large or small dollar amounts.  It’s important to note that the purchase doesn’t necessarily have to be from her primary line of business–perhaps a ticket to a fundraiser, a used car, a computer, even a box of Girl Scout cookies from her daughter. By purchasing something from your network member/referral source, you become one of her customers. As a customer, you are...