Brought to you by Referral Key “Your Trusted Referral Network”
What Referral Marketing Is:
Referral marketing is a relationship based marketing strategy whereby, individuals agree to send each other new business. Referral marketing is probably as old as humanity and as natural as breathing. We have an innate need to promote positive experiences and encourage others to share in that experience. From recommending a favorite pizza joint, to arranging a meeting between a trusted accountant and a colleague, we love to promote what we like. Even as mass media has allowed for large scale advertising, referral marketing is the bread and butter for many small business owners. Small business owners who master relationship based marketing achieve high levels of financial and personal fulfillment.
If you promote your business, actively find new referral partners, and maintain balanced relationships with an organized referral management system; you will generate sales leads and drive more revenue.
What Referral Marketing Is Not:
Referral marketing is not a quick fix marketing solution. The limitless potential of referral marketing is largely based on momentum. In other words, referral marketing rewards those who consistently and consciously manage and expand their business network. The arrival of the internet and mass communication has also signaled the arrival of millions of rogue marketing programs which range from questionably-unprofessional to unethical. While most of these people rarely turn a profit, they leave their cyber-junk all over the internet. Unfortunately, some of these people have adopted legitimate sounding terms for their programs i.e. marketing, referrals, business network.
Bottom Line:
Email lists, advertising, and cold calling pale in comparison to the power of exchanging business referrals with professionals that know and trust you.
Tags: referral marketing
Indicates your referral relationship is balanced,
Indicates an imbalance.
Many small business owner do this unconsciously. They refer to others when they think about and don’t work to cultivate referrals from those they do business with already.
The people who are the most successful and gain the most business from referrals are those who consciously and specific work to cultivate referrals. They deliberately have a plan to grow the amount of business they have from referrals.
You know which business type is a master at this? Chambers of Commerce. Most of them actually have a committee whose main purpose is to bring them referrals. I have one at the Clovis Chamber. I reward and promote them and they help find new business for me. Most of them do it because they have pride in the organization which is one way they are “rewarded.” But I also find ways to encourage them and give them perks.
I always thought that businesses need to adopt an “Ambassadors” program of their own. Contact your local chamber to learn how they do it.
Great advice Beth. We’d really love to have you do a guest article on referral marketing strategies and how someone could incorporate the chamber of commerce and Referral Key to grow there business.