Everyone agrees that “word of mouth” is the best advertising. Everyone knows the power in one person telling another about a service or a product. The problem is that casual referrals usually don’t create a phenomenally successful business. To generate a massive number of referrals, you need a phenomenal referral marketing system.
The second biggest marketing mistake small business owners make is what I call “chasing suspects.” We’ve all been there. We chase people we think might be good prospects for us, trying to convince them of that, and we spend a massive amount of time and energy chasing them and nothing ever comes from it. Of course the “the fortune is in the follow up,” but who you follow up with is very important. We should have a follow up system for those who are truly prospects. A suspect is someone who fits the demographic. A prospect is someone who has actually asked for more information.
The Secret to Record Sales and Profits
My experience of coaching thousands of small business owners around the world tells me that most small business owners are missing out on a very big secret. This is how I have built my companies and how small businesses
worldwide are having record sales and profits. The secret is this: Instead of chasing suspects and spending so much time following up with individual prospects, invest your time building relationships with powerful referral sources.
What I mean by a referral source is a company or professional that has a relationship with an unlimited supply of your perfect niche client. For example, if you are a CPA and you get referrals from attorneys, then your referral source would be law firms. Invest your time building relationships with attorneys who can refer an unlimited supply of your perfect niche client.
Here are a few examples: Currently, I’m the exclusive small business coaching arm for the Ziglar Corporation. They are a referral source for me. There are many small business owners (my niche) on their list. Also, I’m a referral source for Ziglar. Who needs Zig Ziglar products? Everyone! All of my clients need their products.
Not too long after I began teaching my systems to small business owners, I approached a large supplier that had thousands of small business owner customers across the nation. We put together a joint venture, and I travelled to their stores all over the country and they made sure the small business owners were there to learn from me.
The first company I started is a cleaning business that cares for Oriental rugs, stone floors, and fine carpets. It was built by building relationships with flooring retailers, interior designers, and real estate agents. They refer their clients to us exclusively.
My first book was an Amazon.com number one best seller because I coordinated a launch with a dozen “affiliates” that promoted my book to their list.
My Definition of Referral Marketing: “The process of building a network of sources that will refer multiple clients to your business.”