Unless you’ve been living in a cave, you have some sort of network in place. It’s your friends, family, doctor, dentist, accountant, lawyer, personal trainer,  and coworkers.

You’ve recommended them to members of your circle. But, how do you leverage your connections for a profit?

Building a network isn’t difficult. Neither is referral marketing. You’ve been doing it your entire life without even being aware of it. It’s simply making connections with people and turning those connections into close, long-term relationships.

The major difference between these networking relationships and the kind you’ve been creating for years is that the focus should be on promoting your business. You want to strengthen your relationship with every member of your network so that they will help you build your business.

As with anything, there are certain ways to approach referral marketing. You must:

Be direct and bold.

Explain what you have to offer, the importance of their help, and stress that you’re trying to develop mutually beneficial relationships.

Ask how you can repay or help them. Most people understand the reciprocal nature of business and know that business relationships are incentive enough.

Ask only for the chance to prove yourself.

One of the major benefits of adding new members to your network is that you are then able to access the network that person has already built. They instantly become a member of your publicity campaign. When you approach the members of your network for help in promoting yourself, you can:

Tell your contacts that you’ve started your own business, or have expanded your existing business and are seeking referrals.

Ask everyone for three referrals. At first, they may be hesitant, but put them at ease by showing them examples of your past work.
Point out that you’re soliciting their assistance because you’ve moved into larger offices, put on additional staff, added new equipment or merchandise, or just wrapped up a major project.

Ask for specific names of people that you can contact and get permission to use their names when contacting those people.

The stronger and larger your network becomes, the easier it will be for you to promote your newest product or service. By calling on your network members to help you wage your publicity campaign, you are using the low-cost (and at times cost-free) method of word-of-mouth to accomplish your goals.

Referral Fees
Clarify with all referral sources up front whether they want a referral fee—a monetary incentive for providing business contacts. If they do, agree upon the amount in advance. In some industries, referral fees are unethical. It varies from industry to industry. So check out what’s acceptable in your field.

When you secure a client or a job through a business referral, reward the individual who recommended you. If they can’t or won’t accept a referral fee, give them some type of gift—a gift certificate, tickets to an event, or a charitable contribution—or perform extra work at no cost to show your appreciation. Even the smallest gesture will be appreciated and it’s good business.

In Your Field
When looking for referrals within your area of business, approach former bosses, former coworkers, and established company heads. Former employers and coworkers are great referral sources because they know you, the quality of your work, and are usually eager to see you succeed.

Another possibility is to contact larger businesses to see if you can handle their overflow, or assist with projects when they need help. These types of relationships will guarantee that you receive referrals down the road.

Some people in your business field may fear that you might steal their clients or customers. To ease their concerns:

Be willing not to disclose to referred customers or clients that you operate a separate business.
Offer to act as the referral source’s employee while handling their referrals.
Work out of the referral source’s office or use his or her stationary.
If, after a referral is completed, the clients or customer wants to hire you directly, don’t accept the business without first obtaining the consent or your referral source and agreeing to pay a referral fee.

Don’t steal customers or clients. Over the long run, you’ll be judged on your reputation for ethics, honesty, and loyalty, which far outweighs whatever you might receive from stealing a referral source’s clients or customers.

In Complementary Fields
Solicit businesses in different, but complementary fields. Create alliances to mutually refer clients or customers. For example, if you’re a florist, approach wedding, party, and event planners; caterers; photographers videographers; and banquet halls operators. If you operate a payroll preparation service, attend events for business accountants, financial consultants, and small business operators.

While soliciting referrals outside of your industry, distribute samples of your product. Let key people experience how terrific it is. Give out samples that will make them want to work with you. Personalize samples to include something unique for each person or business you pitch.

If you run a service business, print a one-page explanation of why your service is superior. Write a great headline, a compelling lead paragraph, and bullet the benefits your service will provide. Use attractive paper that reflects the level of professionalism, design, and inventiveness you want to convey. Include photographs and illustrations. List fee schedules, guarantees, and attach testimonials from customers declaring the excellence of your work, your professionalism, and how much they enjoyed working with you.

Go to workplaces and try to meet business operators. If that’s impossible, leave a hand-written note with your sample or written material. In the note, express regret that you couldn’t meet face-to-face and explain that you’re seeking referrals and would love to speak with them at their convenience. Follow up the note with subsequent visits, phone calls, or e-mails.

Remember, Businesses are built on referrals and everyone is a potential source of new business. Use your existing network to build your customer base and improve your referral marketing. Ask each contact for three referrals and clarify in advance whether they expect referral fees. And when sources produce referrals—show your appreciation.

©2012All Rights Reserved by Charlie Cook or Blog Post Author..

With a half dozen or more great testimonials, you have instant credibility and closing the sale is that much easier. What? You don’t have at least a half dozen  recent testimonials?

If you had them, when people asked you about your services, you’d point them to your testimonials, and tell them to call any of the many who signed off on their statements of your firm being the best thing since sliced bread or indoor plumbing.

When confronted with 100 testimonials, most people won’t call any.

In your normal course of conversation with clients it’s easy to get someone to mention something flattering about you. Someone said something nice about me once. I’ll never forget it. It was in June of 88. Wednesday. We were about three or four gin and tonics in and… OK, no matter about the rest of the story. Man, I was all over them for a written testimonial like a cheap suit. Here’s how you can do it, too.

Even if it’s a simple statement, “Hey, thanks a lot. Nice speaking with you.” Or, “Thanks, I appreciate it.” You can make a testimonial out of it.

“That was a nice thing to say!” you exclaim! Inferring that it was nice of him to say it was nice talking to you, or that he appreciated something you did. Of course, people probably have said much nicer things than these simplistic statements about you, haven’t they? Oh well, me neither.

“Would you mind if I use that as a testimonial?” you continue, big smile on your face and catching them completely off guard.

“OK,” they’ll say without thinking.

Now that they’ve committed, casually ask, “Come to think of it, can you say a few more nice words about my firm (or myself) that I can use – I’ll write them down? Got my pencil ready!” Then smile – it makes a difference. “Keep it clean, though.” you joke. It’s good to sound fresh, like you’ve never asked anyone to do this before, or this is the first time for that joke. Ha!

They’ll say a few words, you smile and nod (which will look good in person, or will look less good over the phone but will sound like you’re smiling) and write down the gist of what they said.

Continue promptly, “Thanks. Thanks so much. Here’s what I’ll do so it’ll be as easy for you. I’ve written down what you’ve said and I’ll send it to you. You can just initial it and send it back – I’ll enclose two copies one for your files, and an envelope to send the other copy back to me. Hey, thanks for doing this.” Insinuating it’s a done deal.

Now that you have a nice approximation of what they’ve said, feel free to admonish it ever so slightly. Use a deft touch… like a great editor whose work is so subtle the author will go back and read his words and never know it was touched by anyone else. Now that’s the mark of a really great editor. You, on the other hand, don’t need to be quite that good. Just go ahead and make your testimonial sound great.

Since it was oral, your client most likely won’t remember what he said exactly – so you can take some liberties here. This is especially true if you’re at a bar and have been for the past 6 hours, you know, like when I got my first testimonial. Or was it 8 hours. I forget. But that’s not important – what’s important is I got this huge tattoo that night and who exactly is Janette. If anyone knows, please call.

If you’re friendly with this client, you can mention how great his new testimonial would look on his own letterhead, but “it certainly isn’t necessary.” Never hurts to drop a hint. Then send the testimonial that he “sort-of said” to him in a printed form.

You can also feel free to send it over to him by fax. It’s fast. If you send the testimonial that he “sort-of said” in a letter. it will take a few days to get to your client and here’s the benefit to this: Over the course of the day or two it takes to draft this statement and send it to the client in a letter, there’s no way they’ll remember what they said, and certainly they won’t remember their exact wording. Plus – if you received this testimonial after a few drinks, you can probably feel free to take great liberties writing what you thought you remembered and what he thought you both said. Or something like that.

Writing a testimonial for a client, unlike soliciting a client’s written testimonial, where most clients prove way beyond a shadow of a doubt they don’t use spell check, you can spell every word correctly. Send them their statement in a letter and as long as it doesn’t look to far out of range I promise you they’ll sign off on it. You’ll have a great, well written and signed testimonial.

For best results, collect a whole set, and don’t be afraid to show it off to new prospects. Tell them you’d be so proud if you had their personal testimonial in there while pushing a pen and paper their way. That’s called “The assumed close.” And that’s another article.

©2012All Rights Reserved by Charlie Cook or Blog Post Author..

No doubt you’ve gathered all kinds of tips and strategies to help you “close the sale”. The problem is, sometimes we get so focused on closing the sale we forget the sale is really just the beginning. Yes, the beginning. The beginning of a long, rewarding relationship with our customer that leads to repeat business and lots of referrals.

Want to know how to create that kind of relationship with your clients? It’s called Appreciation.

A couple years back, a situation happened that made me realize just how critical appreciation, or a lack thereof, is to the success of any business.

My neighbor asked if I knew of a good insurance agent. So, I referred him to my agent. I went one step further and sent both parties a joint email introducing them. My neighbor ended up insuring his home and two autos with this agent.

And me? I never received a hint of thanks from the agent – no phone call, no email, no written note, no mention of it the next time I saw him. Big mistake!

Guess what? I never referred him again. Soon afterward, I found a new agent. Because of his gaffe? Not entirely. But his lack of customer appreciation certainly colored my opinion of him as a professional.

Had I been thanked, I might have stayed. And I would have gladly sent more referrals his way. But I wasn’t, so I didn’t. I went elsewhere.

Remember this old adage: “That which gets rewarded, gets repeated.”

Reward good behavior and it will be repeated. This applies to children, pets, spouses and customers. The behaviors and actions you acknowledge and praise – including referrals – are those that get repeated.

- Colleen

©2012All Rights Reserved by Charlie Cook or Blog Post Author..

“Charlie, recently I bought your book, Creating Web Sites That Sell (link) and I’m ready to build my website. Do you have a web designer you’d recommend?” – Dave from Whitefish, MT

Every week I get requests from readers and customers looking for a web designer, someone who understands that the purpose of a web site is to generate leads and to sell, not just look pretty.

If you’ve used a great web designer, or know of one, that does professional work that not only looks good but has helped increase leads and sales – let me know so I can put them on my preferred list and share it with business owners ready to spend on building or redoing their web sites.

Just add your suggestions by leaving a comment, I’ll review them and put together my short list.

- Charlie

©2012All Rights Reserved by Charlie Cook or Blog Post Author..

Is business slow? Are you frustrated and wondering what to do to make ends meet, much less become really profitable again?

I spent the first ten days of October on vacation with my wife in a small town in northern Vermont, where I followed two very different business stories in the weekly paper.

Picking up the paper on our arrival, I read an irrate letter to the editor from Larry, the owner of a bed and breakfast, one of many in the area. He claimed that business in the valley is “dying on the vine”. Then I read an article about The Red Hen Bakery, which has grown from 2 employees to 24 in the last 15 years baking and selling artisan breads.

Different businesses to be sure, but just about every business in this area depends on the tourist trade. Inns and bakeries are no exception. How is it that one small business is struggling and another prospering?

Larry gets good reviews from his guests, and has the reputation for running a top-notch bed and breakfast. But when business slowed down in the current recession, he vented his frustration in the local paper.

In his letter to the editor, he said the local merchants and restaurateurs know nothing about customer service, have no business or marketing know-how, and are actually rude and hostile to visitors.

You can imagine the response to Larry’s criticism. Merchants and residents were insulted personally and professionally, and let Larry know it in their own letters to the paper. They also had a lot of advice for him about promoting customer loyalty and weathering downturns, but I think the harm is done. That is, the harm to his business.

What do I mean by this?

The easiest way to grow any business is to get other people to actively promote you — to grow by referrals and word of mouth. A prospect that comes to you because of a referral has already transferred their trust from the person who made the referral to you. It’s much easier for you to close the sale.

Every business exists in a community. For local merchants the community consists of other shop owners. For doctors its the local and regional medical community, other doctors and health practitioners.

The members of your community can be your best sales people, referring customers to you again and again. They can help you maximize your profits with minimal effort.

My community consists of my coaching clients, my customers, other online marketers and people I do business with. My goal is to get as many of these people as possible to recommend my products and services.

Did Larry miss the fact that the local merchants and other innkeepers are a potential source of customers? Talk about a lack of business know how!

The very people Larry insulted could have been a constant source of referrals. Larry should have been courting them instead of blaming them for his lack of business.

How much of a difference would it make to your profits to get other business owners in your community to refer customers to you?

The Red Hen Bakery worked their community in another way. Their bread is crusty and delicious and they have at least 20 local restaurants serving their bread and sell it directly at over 25 stores and farmer’s markets.

Initially the owners thought they’d be successful if they could make their business support two employees. It now has twenty-four employees and just garnered the Vermont “Small Business of the Year” award.

If your business is dying on the vine, don’t do what Larry did and kill it by blaming other business owners. Enlist their support.

Grow your business by getting business owners in your community to provide referrals or even sell your products and services. You could easily grow your business tenfold, as the Red Hen Bakery did.

Which are you doing? Asking who is to blame or asking who can help you grow your business?

Two very different questions that will get you two very different results.

- Charlie

P.S. Want to discover the fastest way to get more referrals and see your profits grow? You’ll get all the details, when you become a member of the Insiders’ Circle.

Interested in making this year your best ever? Take action

©2012All Rights Reserved by Charlie Cook or Blog Post Author..

The blogosphere has been busy with chatter regarding a certain company that offers to sell companies followers on Twitter, Facebook fans, and Digg votes. It’s not expensive: Facebook fans go for about 10 cents each.  Many companies large and small appear to be interested in this service.

What is the psychology here? Well, think about if you’re in a strange city and you leave your hotel looking for a place to have dinner. Do you go to the restaurant where only one or two tables are taken, or do you go to the one with a ten-minute wait?

Most of us will choose the one with the wait, because if that many people are there, it has to be good. This same principle seems to be working in social media. People are more likely to become ‘fans’ (or followers) of businesses that already have a lot of fans (or followers), because there is the feeling that these businesses must be doing something right.

Is this something you should do? Will purchasing fans or followers for your social media help your word of mouth program? As you know, people who like your business are likely to talk to others about your business. And in my opinion, you want quality over quantity when it comes to word of mouth: you want people who are currently customers of your business, who come in often, and who will be happy to answer ‘yes’ when you ask them to tell others about your store. And in fact, they are more than likely to become your Facebook ‘fans’ and to follow you on Twitter.

I think that “purchasing” fans and followers gives the illusion that your business popular, but it does very little to get people to your place of business.

Of course you could offer a special Facebook or Twitter discount to these newfound fans and followers, and you might get a few people in the door to sample your business. While I don’t have statistics to back this up, I’m guessing that any of the ‘fans’ that you purchase are unlikely to tell others about your store.

So instead of ‘paid’ followers and fans, think about ways to grow your fan and follower bases organically…through the people who chose to be part of your network (social or otherwise).

Ask them to become a Facebook ‘fan’, and then once they do, ask them to invite their network of friends to become fans of your store too (maybe give them a special code that they can share with their friends to encourage them all to visit your place of business). A thumbs up from current customers will do more to bring new people to your store than a big number of followers or fans.

So if you were thinking about buying some new people…think instead about using those funds to give incentives to current customers and their friends.

- Kim

©2012All Rights Reserved by Charlie Cook or Blog Post Author..