Referral Marketing is the process of building a network of sources that are in a position to refer multiple clients to you. It takes the same amount of time, money and energy to market to a "source" that has an unlimited supply of customers as it does an individual prospect. Therefore referral marketing is much more powerful than advertising. In fact, my company was built on referrals. We bring in over $50,000.00 per month in new business just from referrals!
There are 11 important reasons that Referral Marketing is so powerful.
1. The "network" is unlimited. A referral source sends you a client. If you have a referral program, you can turn that person into an active referral source as well. As each referral sends their friends, neighbors, clients, and co-workers, the growth is absolutely endless. You can literally get to a point where you have to do absolutely nothing other than make sure that your referral sources and clients are happy. But you have to have the right referral program. All referral programs are NOT created equal
2. You get a steady stream of NEW customers. Many times when you place an ad (if it works), you get all the calls at the same time. With referral marketing, you get a steady stream of new clients.
Referrals: The Key to "Mercedes Clients"
3. Higher Quality Clients - A KIA customer is not going to call a carpet retailer or Interior Designer to find a quality cleaning company. They will call the 3 cheapest companies in the yellow pages. Mercedes Clients buy almost exclusively through referrals. They want the best, so they call their "consultant" to find out who to choose.
4. You get pre-qualified clients - By educating your referral sources, including filling them in on your pricing structures, your prospects will be pre-qualified before they ever come to you.
Eliminate Your Competition Forever!
5. People Trust Referrals - Everyone that is in business has received referrals from time to time. Wouldn't you agree that referrals already have a level of trust for you? You also have more trust for them. This makes for a much better business relationship. They are also much less price conscious.
6. Reduces Competition - With this process you are not jockeying for the best zip code in the coupon mailer, or competing with the other ads in the yellow pages. Your biggest competition is you. Will you invest in a referral program? Will you take the time to make the calls? It is all up to you.
7. Low Cost - Some materials and time is all that is required. If you offer a referral fee (which I highly recommend), the cost is still extremely low compared to advertising.
Part II: How to Get a 20 to 1 Return on Your Advertising Dollars! Stay Tuned!
Phenomenal Products, Inc.