Referrals . . .The Secret Weapon

Are you getting referrals from you customers? If not, you are missing a lot of sales. Think about many of the sites you visit on the web. Many of them will ask you to tell your friends, families and others who might be interested about them. For doing so, they offer you an incentive, for example, free stuff, gift certificates, etc.

Let's talk about off line. How about the book club or record club you belong to. When you get mailings from them, ever notice the card that says if you refer a friend they'll give you a free book or CD. This is what is called an incentive.

Any marketing expert worth their salt will tell you that there's no business like business you get from referrals. Why? Because for the most part, people who refer others know that person will be interested, and it also indicates that they are happy with your product, so word of mouth (or in this day and age, email) will be good.

Unfortunately very few individuals are going to write you and tell you how happy they are with your product or services. You NEED TO ASK FOR REFERRALS! This applies to everyone ? big businesses, small businesses, home based businesses, sales representatives, independent contractors. In fact good salespeople will ask for the referral between closing the sale and saying goodbye to the customer as part of their sales pitch. We ask for referrals from our tenant buyers and sellers in our final letters.

A good example of using this in your business is, let's say you sell office supplies. Ask your customer for referrals and then offer to give them a discount or dollars off for so many referrals. Or you could give them a gift, like a free pen or calculator, etc. You get the idea.

To decide what to give away, think about what will motivate your customer. Will they prefer cash, or gifts. You know your customer best. You need to give them something they want so they will repeatedly give you referrals. We offer cash to our sellers and tenant buyers if they refer someone to us that we do a deal with.

For those in any type of retail operation the flyer that looks like cash that can be redeemed or buy one get one free, or get a percentage off, or it's a tax free weekend, etc. can work wonders. Couldn't you also mail a flyer to your customers that states, "Good toward your purchase, when you refer a friend".

In all businesses, you need to get your customer to tell you what they like about your business. For example, whenever we get an email or a telephone call from a customer that praises our services or products, we ask if we can use it as a testimonial. You must get their permission (unless however you receive unsolicited mail from them). Again, ask your customer for a testimonial. For example, if you liked the dinner at our establishment, please fill out this form. We appreciate your time, so by doing so, we will provide your next entrée for half price. We put incentives in our books and services for our customers to get back to us with their opinion.

I can remember back when I worked for temporary agencies, they were forever giving out pens, pads, magnets, etc. to keep their names in front of everyone. Think of Pizza Hut and Domino's. How many magnets do you have with their name and telephone numbers on your refrigerator. When we ran our Matching Numbers business, we made up shirts and jackets that we wore everywhere. You'd be surprised how many customers we got in the grocery store, post office, fast food places, who asked us for cards or about our business.

There is a whole separate industry that deals with advertising specialty items. You name it, you can get your name on it. Mugs, pens, business cards, memo pads, etc. These items can get the word out on your business not only to your customers , but also to your customers' customers. Memo pads are especially nice. People have a tendency to jot notes on them and then give them out to others. So they are a very far reaching tool. Advertising with Specialty items is almost as good as referrals.

Be sure on your promotional material (brochures, flyers, newsletters) that you indicate how your referral program works. Be sure to indicate what type of incentives you offer. Be sure to be very specific in outlining what your customers need to do. For example, fill out this form and mail it back (or fax it back) with the names, addresses and telephone numbers of those you are referring. You don't have to ask for all of this information, however, if you are going to snail mail you will need their address.

Be sure when you do your networking at your organizational meetings or chamber meetings that you tell people about your referral program. Business people appreciate being rewarded for referrals they give you. However, too many people never follow through, which is why for many businesses their referral program goes by the wayside. This is one area where we stress to our students you tell all your networking partners, your tenant buyers, your sellers, and all of your family, friends, in fact, everyone you come in contact with that you pay a percentage of each deal you do (an average deal is $5000) to them if they refer someone and you do a deal with that person. Believe me when I say, once they receive one check from you, they become a walking advertisement for your lease purchase business.

There is one caveat to offering a referral program and that is you must DO GOOD BUSINESS. Your credibility is at stake. You want to be viewed as a reliable, dependable, and trustworthy individual. You need for people to want to buy from you, and because you did such an outstanding job, tell everyone else about you.

So, are you using the Secret Weapon?

Copyright 2003 DeFiore Enterprises

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com

In The News:

---

Write Articles WITHOUT Writing!

Face it, writing any article can be a tedious and... Read More

Online Magazine Subscription Services Make Shopping Online Fun For Magazines

If recreating the old experience of subscribing to magazines by... Read More

How to Write a Fundraising Thank-you Letter for Example (Includes a Free Sample)

Thank-you letters are one of the most important letters that... Read More

Everything Youve Ever Learned About Marketing Is Wrong

Everything you've ever learned about marketing and advertising is WRONG.... Read More

Private Practice Marketing: 3 More Secrets I Wish I Knew When I First Started Out

Secret #4 - Get very comfortable asking for paymentOne of... Read More

Everybody Loves Raymond....You Should Too!

Popular TV Series Provides a Powerful Marketing LessonSmall Business owners... Read More

Big Money With Folios

One of the easiest, if not the easiest, ways of... Read More

Increase Your Profits Through Customer Loyalty

The job of convincing your existing customers to spend higher... Read More

Freebie Seekers? Turn Them Into Clients and Referrers - or Turn them Far, Far Away

Many service business owners these days are "giving away" their... Read More

The Great Direct Marketing Conundrum

Many a home business owner has spent sleepless nights thinking... Read More

Using Business and Greeting Cards Effectively

Business cards and greeting cards almost go hand in hand... Read More

Winning At Business With Your Marketing Game Plan

Stuart from Colorado had talked to a number of marketing... Read More

5 Print Ad Essentials!

Writing an effective print ad, particularly a classified advertisement, requires... Read More

15 Commandments Of Creating A Wealth Pulling Niche

Niches are like bathrooms; you never notice them until you... Read More

Itchin For Some Nichin

The whole idea of Niche Marketing is exciting! The possibilities... Read More

Attracting New Business on a Shoestring Budget

In a recent marketing workshop I attended, I discovered that... Read More

Take the Logo Litmus Test

Here is your C.I.T.T. (pronounced "kit")[Color ? Illustrate? Type ?... Read More

Two of the Biggest Hurdles

As I was preparing for a presentation recently, I was... Read More

Business Marketing For Consultants, Coaches, Speakers, and Trainers: How To Be Noticed and Trusted

Business marketing is essential for professional services, such as consultants,... Read More

How to Use Marketing Judo to Beat Big Competitors

If yours is a small business and you have big... Read More

Have You Captured Me Today?

There are many Web sites I visit every day and... Read More

Positioning For Success

According to military historian David Chandler the campaigns of Napoleon... Read More

Marketing Through Associations

©2004 Jeffrey DobkinIf you're in direct marketing, you're continually looking... Read More

Postcards: Awareness Tool or Selling Tool?

Are postcards better for building awareness or for selling?In my... Read More

Trade Show Exhibit Booth ? 7 Tips to Improve Yours

Once you have decided to participate in a trade show,... Read More

Joint Venture: 50 Power Secrets Of Joint Venture Marketing, Exposed

What is a Joint Venture?A joint venture is an agreement... Read More

Who are Those People Youre Selling To?

If you're in the IT business, that's an important question.Most... Read More

Increase Your Response with Multi-Step Marketing

"There is only one way to judge the effectiveness of... Read More

In Sickness And In Health

I recently drove by a business that had a sign... Read More

The Marketing Recipe: Money, Marketing and Me ? 3 Keys For Success

You have a great product or service? Now, how should... Read More

Make Your Marketing Solve a Problem

You may be engaged in a marketing activities that are... Read More

The 10 Cornerstone Principles of Marketing

There are four parts to a marketing system and they... Read More

What Are People Buying Online?

Benefits, that's what!Whether you're selling in print or in person,... Read More