Unfortunately, Webster’s Dictionary hasn’t caught up to the small business world quite yet, but it sure would be nice to have a working definition of a ‘qualified prospect’. In a world saturated with Craigslist postings, friend requests, and e-mail lists: it is important to be able to distinguish between a qualified sales lead and an unqualified sales lead.
One of the easiest ways to differentiate from the two is to pose this simple question: Do I have a clear advantage over any other professional who may be trying to court a particular prospect? You can apply this formula in nearly every referral marketing situation. For example, Tracey, a web designer who is looking for new business pays to post dozens of ads on Craigslist. Jim, a restaurant owner is browsing Craigslist and is possibly interested in creating a relationship with a web designer to help create and maintain his restaurant’s website. Now let’s pose the question: Does Tracey have a distinct advantage over any of her competitors when it comes to Jim’s decision? …The answer is absolutely not!
Tracey’s firm is competing with thousands of other firms, both locally and nationally, who can just as easily post a picture on Craigslist. Jim may do a bit of browsing, but he is likely to become overwhelmed with the hundreds of seemingly identical options. Pursuing unqualified sales prospects forces you to cast your net extremely wide and expend a tremendous amount of effort in the hopes that you’ll entice a stranger to give you a call. To be blunt, when was the last time you hired a service professional based on a Craigslist ad, cold call, or a classified?
Suppose Tracey has a good relationship with her accountant named David. She knows that David works with quite a number of local businesses including restaurants. Tracey calls to touch base with David and also takes the opportunity to remind David that he may have a few clients that could use her design services. Later that afternoon, David is on the phone with one of his clients, Jim who happens to be opening a new restaurant. Through some tactful networking, David discovers that Jim will need to establish a website in the near future. Of course, David will want to send Jim’s contact information to Tracey immediately using Referral Key.
Does Tracey have a distinct advantage over her competitors? …The answer is absolutely yes! There’s accountability all around. Jim trusts David’s advice and David is familiar with the quality of Tracey’s work. Jim is focused on running a successful restaurant. He doesn’t have the time to follow up with dozens of Craigslist responses and he certainly doesn’t have time to play phone-tag with an unqualified web designer. Or worse a web designer based out of his basement in Aruba who hasn’t returned his phone calls in a month since Jim’s last payment.
The bottom line is if Tracey immediately follows up with Jim, she is almost guaranteed to close the sale. Jim is an example of an extremely qualified prospect. This polarizes the clear difference between the effectiveness of a strong business referral network and blanketing Craigslist with your pitch.
The internet is awash with hundreds of articles written by amateur bloggers which promote an ever growing list of social applications as the saving grace of the real estate world. The reason for these blogs? The blogger probably just started becoming familiar with that particular site and wanted to share their enthusiasm. There’s nothing wrong with that however, just because you are a social networker and a real estate blogger, does not mean you should promote your weekend social networking exploits as the winning strategy for every struggling office out there.
Blogs like Newsweek’s, “Can Facebook revive the real-estate market?” really do a disservice to professionals who are unfamiliar with social applications. Social applications are great but what these articles forget to mention is that you’ll probably spend hours, days or even weeks sharing photos, jokes, and links with acquaintances but no studies, professional reviews, or peers would tell you that sharing YouTube Videos, even with other professionals, on Facebook is a great use of your work day.
Let’s face it, real estate professionals are hungry for new business right now. Many markets have dried up, forcing professionals to consider drastic options like getting a second job or relocating. You need actual ROI to buck this economic trend and referral marketing is the way to go. Referral marketing is where the rubber meets the road and while many bloggers may use an off-handed story about how they reconnected with an old buddy on Facebook and generated a new lead, friend requests don’t usually put money in the bank; qualified referrals do. Get your listings in front of potential clients seeking the service you provide by posting in logical places like an online small business directory. When you’re looking to for a qualified professional, like a seasoned real estate agent to sell your home, do you go to MySpace? No, so why would anyone else! Instead of sharing dismal stories of the market with other agents on their profile page, get your head in the game and generate some referrals first.
Tax season is upon us and most Americans are trying to avoid procrastinating this year. At this moment, there are thousands of potential clients seeking qualified accountants for this year’s tax season. Where do these potential clients find their accountants? How do you get in front of them?
How about print ads?
Traditional forms of advertising may occasionally be an option but remember, the results are unpredictable. This economy doesn’t lend itself to costly advertising campaigns; besides, most of your clients are online anyways.
What about search engines?
Gone are the days of “build a website and they will come”. Even a larger firm is likely to be competing with every other entity that uses “accounting” in their name or description, this will likely place your firm hundreds, if not thousands of places down in the Google search results. Considering most people never even see page two of the results, small to medium sized firms aren’t likely to generate much, if any of their new business directly from a search engine placement.
The Solution:
A directory of qualified professionals is exactly where many people will begin their search. This is great news for your firm because unlike search engine results or paid advertising, a small business directory is unbiased to the size of your wallet or even the size of your firm. The key to attracting clients in a directory lies in describing your business in a way that fits the needs of the clients who are browsing the directory.
Remember, not all directories are created equal. If the directory you are considering posting to is full of advertisements and doesn’t look very organized, it’s likely that potential clients will be thinking the same thing. Some directories ask you to pay in order to list your business. You may want to be skeptical of this transaction, as anyone can create a website and charge a fee to be listed on that site. The directory should look professional and have traffic. Of course, we’d suggest the Referral Key directory. Not only is it free but there are plenty of ways you can differentiate yourself from your competition right in your listing; your old referral software can’t say the same.
Watch this tutorial to learn how to fully take advantage of the Referral Key Business Directory:
Successful Realtors are always hungry for new qualified sales leads. Ask any Realtor and they will tell you that securing a few key closings can have a massive impact on their revenue stream. As we had mentioned in a previous blog posting, CPA referrals are special because of the trust clients place in their CPA’s. Realtor referrals are equally as important because of the critical value of each and every sale that’s made. The referrer, buyer, seller and Realtor are all vested in the process.
If you are a Realtor the objective is clear; send plenty of business referralst to your associates if you want to make this quarter a profitable one. If you aren’t a Realtor, you should definitely have at least one in your referral network. Realtors are some of the most social and gracious networkers out there. So, keep your ears perked and your referrals qualified because Realtors will advocate for you if you do right by them. Given the tumultuous economy, right now is the best time to begin building strong referral relationships with choice Realtors. The business directory is an ideal place to begin your search.
Taking out a quarter page ad in your local newspaper is probably not the most cost effective way to promote your small business. This is especially true during tough economic times.
We all have the urge to supplement our business referrals with additional advertising efforts. Too often, small business owners mull over whether to conduct a costly ad campaign or not, but forget to leverage many free opportunities right at their fingertips.
Describing your services in a online business directory is fast, free and very effective. Consumers often search quality B2B directories when seeking a service provider. Why not leverage this traffic?
Simply find a business directory that is up-to-date and organized. Be sure to tag your business appropriately so that the right clients can find you. Potential clients are much more likely to contact you if you’re specific. For example, a personal injury attorney would be better off putting the tags; “personal injury, malpractice, compensation, legal advice” rather than trying to cover all bases with broad tags like this; “lawyer, attorney, legal”.
In our connected society, it’s possible to generate greater visibility through a free business listing than paying for advertising. With a little effort and a little time, today you can list your company on a B2B Directory and promote your firm to thousands of potential clients seeking the services you provide. What do you have to lose?
We all know the sayings; “Scratch my back and I’ll scratch yours.” “To have a good neighbor, be a good neighbor.” “Treat others as you would like to be treated.” While these are nice suggestions, we’re often so busy trying to keep up with our current clients (or actively seeking new ones), that we don’t feel we have the time to search for sales leads for our colleagues.
However, we all know that sending a qualified referral to an associate is an extremely effective way to obtain qualified sales leads for yourself. Your associate is likely to be extremely appreciative of your effort, especially in the current economic situation, and should reciprocate fairly soon with an equally qualified sales lead for you. But what if he or she doesn’t reciprocate? You may be so busy that you never even realize that your sales lead was unrequited. Or perhaps you become bitter towards your colleague after having wasted precious time to find him or her a qualified sales lead. In either case, your efforts were for naught. And as a service professional or small business owner, you simply don’t have time to waste on un-reciprocated referrals.
Time is money, and in these difficult times, neither can be spared. That’s why it is imperative to use a referral system to help you keep track of your professional relationships. Not only is it critical for remembering who you’ve sent referrals to, but also who you’ve received referrals from. Maintaining good relationships with your colleagues is of utmost importance, and if an associate takes time out of their busy day to find a qualified referral for you, it is important that you reciprocate as soon as possible. Set off a year of successful lead generation and lead sharing by using an organized method of keeping track of your referral relationships. Then you’ll be ready to go out and obtain qualified sales leads (for both yourself and your colleagues) without wasting any of your valuable time.
We had a chance to catch up with Tony Barrado of “Credit Maximized” in Port Charlotte, Florida. Tony’s referral system is just one example of how a seasoned small business owner can generate a ton of new business by rewarding colleagues who send him referrals.
Tony told us that most of his referrals are coming from mortgage brokers. As a Gold Key member, Tony’s been able to create ingenious promotion campaigns. Tony’s “finder fee” rewards, are a win-win for both him and the people who send him leads.
When the opportunity to send Tony a referral arises participants simply send him the contact information of the client being referred directly through Referral Key. Tony then immediately follows-up with prospects to turn leads into sales. The beauty of Referral Key is that the system tracks all of his referrals so he can easily reward everyone who sends him leads. The system even generates reward reports for each person who sends him a lead.
If you’re interested in participating in Tony’s reward campaign, visit Tony’s profile in our business directory. Also, we encourage you to embrace this powerful tool on Referral Key and create your own referral reward offers to generate quality leads from people who value the services you provide. Good Luck!
As a small business owner, the last time you heard the term “bailout” you were either surfing a big wave or had a hole in your canoe. Nowadays, it feels as though the whole world is resting on the small business owner’s shoulders. As major corporations put their hands out and ask the rest of us to pick up the tab, we are reminded that we will not be afforded the same luxury. However, small business has always been able to rely on their loyal customer base to help them pick themselves up by their bootstraps. One of the advantages a small business owner will always have, is their direct interaction with their loyal clients; building loyalty that lasts through any economic climate.
Instead of dropping the fees for your services, which may cheapen the value of your brand, offer your loyal customer base an incentive to send you qualified sales leads. Given our current economic situation, customers will be more enticed by the incentive you provide, whether it’s a Starbucks gift card or dinner at a popular restaurant. Take advantage of this opportunity to generate new referrals by creating a customer promotion campaign. As was stated in a recent News.com article, “Referral business is…much more powerful than your own outbound marketing efforts, so offering incentives to current customers for recommendations is [a] way to grow.”
So create your own bailout by focusing on your most important niche; the loyal customers you already have. Small business sales leads will never come from a government mandate, but that’s okay because your loyal customers already know your good work and with a little encouragement, they will actively advocate for you.
Every industry has its particular intangible offering when it comes to connecting with a client. A real estate agent isn’t just selling a house; they are helping a family own the home they’ve always wanted. A graphic designer isn’t just creating a picture, they’re helping develop an image for their client. A CPA is entrusted with his or her client’s assets and that makes them number one when it comes to trust. If you’re a CPA this means you’re a very attractive referral partner.
According to All Business, “A survey of 614 family business owners conducted for the Massachusetts Mutual Life Insurance Co. found CPAs were the most trusted advisers outside their family circles. Of the small business owners polled, 31% considered their accountants to be their most important outside business advisers, well above attorneys (9%), bankers (4%) and company managers (4%).”
Because of a CPA’s close relationship with his or her clients; CPA referrals are that much more likely to lead to a sale. It is a very good idea to invite a CPA to join your referral network. If you don’t happen to know a CPA you’d like to invite, you may want to start by reaching out to a qualified CPA in our small business directory.
Successful small business professionals know that one of the best ways to encourage sales is by building and strengthening relationships with the people who already know and trust their work.
A recent New York Times article addresses the core strategies that small businesses must adopt if they are to thrive in the current economic climate. “When times are bad, people are more likely to buy products from someone they know and trust. Building relationships with your regular customers…is more important than ever when business is slow.”
This just makes sense. In a recession, potential clients are naturally less inclined to spend money. They want to be sure that a service provider is truly worth the investment. Nothing communicates the quality of your service better than if the client being referred were recommended to you by someone they already trust. Therefore, it is becoming increasingly important for small business owners to leverage their current client base to generate targeted sales leads. Conducting a customer promotion campaign is a highly effective form of referral marketing. Promotion campaigns send a clear message that you are serious about taking on new business and are prepared to reward those who help you.
Fortunately, referral marketing is incredibly cost-effective. An occasional email or phone call may be all that it takes to maintain a prosperous professional relationship. And in this economy, a qualified referral from someone who knows and trusts your work will be the propeller that takes your business to new heights.
The holidays are a great time to reaffirm your existing professional relationships. A final interim before the long winter months, a little goodwill in December can go a long way. It’s an ideal time of year to reflect on your current strategy to generate sales leads and refine your approach.
There is plenty of literature on “power selling”, “cold calling”, and “persuasion”. In a struggling economy, the only way these strategies are going to hold a flame to exchanging referrals with professionals you already know and trust, is if you use them as kindling for your Holiday fire. Like most things, the most effective advice is often the simplest. Remember, the Grinch’s heart grew three times when he began thinking of others first. If these conversion rates hold true in the small business world, your sales will grow nine times by sending three referrals.
This season “Tis better to give than receive” which means the slick talking “Mr. Hard-Sell” needs to take a vacation for a while. The right path to successful small business lead generation lies in sending qualified referrals to colleagues who will appreciate it and will reciprocate. You’re a small business professional because you know that to truly be successful, you can’t wait around for others to make the first move. Send a few referrals at the end of this year and you’ll generate sales leads in the New Year.
Alex Liviertos, known as “the coach” by his clients, has been helping small business professionals in the Chicago area achieve greater income for nearly 22 years. A Referral Key Gold Key member and business networking guru, Alex understands the importance of developing and managing a strong referral network. To contact Alex you can visit his Referral Key profile or visit his website.
Whoever said, “Build it and they will come” obviously wasn’t a small business owner. One of the biggest barriers to growing your business is taking a passive attitude toward developing referral partnerships with people you trust. You can buy many business networking books and go to many pricey networking seminars and still have nothing to show for it.
Consider taking a few minutes to follow these 4 simple steps and you will have something to show for it.
1. Break the ambiguity of your professional relationships and formally invite colleagues you know and trust to exchange referrals with you. Your colleagues will likely be honored you’ve chosen them as a referral partner.
2. Make the first move. Actively seek opportunities to send your referral partners qualified leads. Think with your referral partner’s best interest in mind and you’ll be amazed at how quickly your partners will return the favor. It’s the old “you scratch my back, I’ll scratch yours”.
3. Track your relationships to ensure your referrals are balanced and mutually beneficial. If you’re sending lots of leads but not getting your fair share, it may be a good idea to reach out to your partners to find ways of ensuring a more reciprocal arrangement.
4. Establish referral promotion campaigns to reward your customers and colleagues for sending you qualified leads. Nothing says thank you like a nice dinner or couple tickets to a ball game.
Guarantee YOUR business a referral tomorrow by sending one today. Visit Referral Key, and the customers will start knocking on your door!
Corporations understand that consumers are more likely to purchase their products when presented with fewer choices. Social psychologists Sheena Iyengar, PhD, and Mark Lepper, PhD, were the first to empirically demonstrate the downside of excessive choice. In a 2000 paper in the Journal of Personality and Social Psychology , they showed that when shoppers are given the option of choosing among smaller and larger assortments of jam, they show more interest in the larger assortment. But when it comes time to pick just one, they’re 10 times more likely to make a purchase if they choose among six rather than among 24 flavors of jam.
If fewer choices consistently results in more sales, then why do so many small business professionals insist on offering far too many services in their company’s description? The answer is two fold. First, because we invest so much time and energy into our practices, we’d like to believe that we’re capable of providing the absolute best service, even if the client’s needs are slightly out of our scope of expertise. Secondly, we inherently believe that if we offer more services, more clients will seek us out.
Every industry has its self proclaimed “renaissance person” however, and we are not trying to pick on them, computer professionals tend to have the “I do it all” bug the worst. This approach may work if you are looking to do odd jobs for friends and family but it presents a barrier for customers trying to find a specific solution. For example, if you are browsing the Referral Key Business Directory looking for an experienced web programmer, which profile are you more likely to follow up with?
Kevin Smith: Web Programming - 12 years
Richard Wilson: Computer Networking, Computer System Designs, Computer Repair, Computer Consulting, Graphic Designer, Web Programming, Search Engine Optimization - 12 years
The first professional is much more appealing because if anything, he appears to be dedicated to his craft. It’s the same reasoning that dictates why we probably wouldn’t want to purchase life insurance at a Walmart. Because of our own experiences and limitations, we have developed an unspoken dialog in our mind. We believe that specialization equals quality.
We often receive referrals with varying degrees of confidence. A referral is not necessarily a sale but it can be if handled properly. The reality may be that your prospect only has a slight interest in your services or perhaps they may be doing some planning for a service they’ll need in the near future. Therefore, it might be beneficial to contact your trusted associate in your business network who sent you the lead before you contact your prospect to get a better understanding of their needs and concerns.
It’s a good idea to find out as much about your prospect as possible. What stage are they at in the decision making process? Have they used similar services in the past? If they were unsatisfied with previous services, what were the reasons why? Knowing how to approach your prospect and being able to address their concerns before they volunteer them; is a priceless advantage that will make you appear receptive, knowledgeable, and trustworthy. A little insight can go a long way in helping you close the sale.
Many professionals are vested in traditional methods of networking such as meet up groups and business card exchanges. As a small business owner myself, I understand that some professionals may find it intimidating to completely take advantage of emerging technologies. Furthermore, there is nothing wrong with networking with associates you know and trust regardless of the venue, so long as your referral relationships remain reciprocal and fruitful. But for those who are constantly looking for ways to generate new leads and strengthen their existing business network, but who are most comfortable meeting associates over breakfast, utilizing online referral tools in conjunction with your meet up group can be a very rewarding strategy.
It is very easy to begin reinforcing and generating new referral relationships online by leveraging your existing meet up group. You can confidentially invite associates you know and trust from the group to exchange referrals with you. Because it is unlikely that all members in your group will be equal contributors, you should invite only those associates who are willing and able to reciprocate. This strategy will also allow you to effectively exchange referrals anytime the opportunity arises and will keep you fresh in your associates mind regardless of the groups scheduled meetings. Seasoned networkers are probably going to find that they have quite a few relationships which exist outside the group. By managing a strong network of select associates, which exists both within and outside the group, it is also likely that you will become an even more valuable referral partner to your meet up group. As your network grows, so will your revenue. Furthermore, online tracking reports will help analyze your relationships and strategically allocate new leads where they are needed.
When considering digital referral campaigns among other strategies, we realize that this is certainly just the tip of the iceberg. Online tools such as Referral Key provide members with an undeniable advantage. Even power networker and BNI founder Ivan Misner acknowledges this unique advantage, “Over the past few months, I’ve been doing quite a bit of research about online networking. And the more I read (and work on the net), the more I realize that if you’re in business today, you definitely need to be on the net”. Online referral management and meet up groups are analogous to snail mail and email. To unlock their full potential, small business professionals will at least need to become comfortable with utilizing both.
Referral promotion campaigns are about thanking people and reinforcing reciprocal behavior within your business community. Choosing the right premium can make all the difference. While cash incentives are universally appealing, you may want to reward your referrers with a special gift. Gift cards, tickets to events, or even gas cards are just some of the few ways you can say “thank you” while removing the impersonal nature of a monetary reward. Think about choosing gifts that have a high perceived value within your community. Ten dollars is ten dollars, but a ten dollar gift certificate to Starbucks may be a tasty part of your referrers morning commute for a whole week; presenting them more opportunities to reflect on the positive nature of your business relationship.
Tickets to events can generate positive word of mouth dialogue between clients and potential clients too. Let’s say you reward your referrer with a couple tickets to a ball game and he takes a friend. It’s likely your name and services will be mentioned. This increases the chance you’ll be thought of if the friend needs services like you offer. In a nutshell, there are many promotional premiums that work. Consider what your client base will appreciate and plan accordingly. Create a referral promotion campaign today and see positive results tomorrow.
Simply type a message in the text box, click the orange POST button, and your message will immediately appear in the Brief queue of all of your colleagues.
If you'd like to send a Brief to just one of your colleagues you can send a Private Brief. Just type ‘@’ as the first character in the text box, choose your recipient, and type your message.
Find past Briefs by choosing briefs in the top search bar and typing a search-term.
You can also attach a file such as a picture or document to your Brief by clicking Attach File and selecting the file from your computer.
Sync Briefs with Facebook: Click the radio button next to the Facebook icon (Under the Brief box) to have your Brief also posted to Facebook.
Sync Briefs with Twitter: Click the radio button next to the Twitter icon (Under the Brief box) to have the first 140 characters of your Brief also posted to Twitter.
The Sent tab displays the referrals you've sent to others and recent comments. Simply return to the sent tab and click “View Referrals” to see all comments and respond.
Successful Realtors are always hungry for new qualified sales leads. Ask any Realtor and they will tell you that securing a few key closings can have a massive impact on their revenue stream. As we had mentioned in a previous blog posting, CPA referrals are special because of the trust clients place in their CPA’s. Realtor referrals are equally as important because of the critical value of each and every sale that’s made. The referrer, buyer, seller and Realtor are all vested in the process.
Indicates your referral relationship is balanced,
Indicates an imbalance.