Why Are Referrals The Best Marketing Tool You Can Use?

David Sims - Business Coach

David Sims – Business Coach

As you know money is tight and all appearances is that it’s going to get tighter.  Especially with the group of people we have in Washington wildly spending your money like fourteen drunken sailors on shore leave.  So what can you do?  Nothing about them spending your money but you can earn more money to offset what you have to pay to Washington.  You know that marketing is critical, right?  But you also know that most kinds of extended marketing for you is going to “cost a ton of money,” and probably more that you can afford.  TV is very expensive and print and radio are not far behind.  They’re all very expensive.  That is except for the MOST EFFECTIVE form of marketing there is for you and your business.  What is the most effective?  REFERRALS of course.

So how do you get people to refer to you?   Maybe you’ve asked for referrals and the answer was, “I don’t mind referring to you.  As soon as I think of someone, I’ll call and give you their name and number.”  And you waited and waited and waited, but the call never came.  If that’s happened to you then join the crowd, because it’s happened to all of us.  Beginning today with step one, I’m I’m going to give you the 10 steps to getting all the referrals you need to build a prosperous business.

Step One: 

First you need a clear understanding of the definition of the word “Referral.”  Maybe you think a Referral is a name and telephone number.  However, a name and telephone number is just a lead.  You must have someone introducing you to the prospect to bridge the “relationship gap.”  And that person introducing you to the prospect must have “Influence” with the prospect.  The “Influence and Introduction” makes the difference between making the sale and just putting another name in your database.  Here’s the TRUE definition of the word “Referral.”  A Referral is, “An introduction to a decision-maker on your behalf.  The introduction is given by someone who has influence with the decision-maker and the person introducing you recommends a meeting or that the two of you do business.”  This is the most effective way to generate new clients.  However, only a small portion of business people use this method.  If you want to put yourself in the top 10% of producers, tap into your relationships and get referred to decision-makers.
To determine the amount of influence the person introducing you has with the prospect ask this question, “How well do you know them?  On a scale of one-to-ten, with close to ten meaning you’re best friends and close to one means you hardly know them, where would you list your relationship on that scale?”  If they tell you, “five or below,” they don’t have much influence with the prospect and it’s not much better than a cold call.  If they tell you, “six or above,” they have influence with the prospect and your chance of getting an appointment or making a sale are almost assured.
In the next post I’ll show you how to become an effective planner when it comes to regularly planning to get more and better referrals.
Best of Success
Remember, you either Soar With The Eagles Or Scratch With The Turkeys!

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3 Responses to Why Are Referrals The Best Marketing Tool You Can Use?

  1. Bare minerals coupons September 29, 2011 at 2:07 pm #

    Have you ever thought about writing an e-book or guest authoring on other websites? I have a blog based upon on the same subjects you discuss and would really like to have you share some stories/information. I know my viewers would enjoy your work. If you are even remotely interested, feel free to send me an e mail.

    • David Sims October 3, 2011 at 4:28 pm #

      I appreciate your comments. I am interested. Tell me a little more about what you have in mind.

  2. David Sims October 3, 2011 at 4:30 pm #

    Do you feel there is a market for this to be translated in French? I have an entire Referral system but it is pretty lengthy.