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Referrals

A substantial part of your business can come from referrals. The key is to provide extraordinary customer service and educate your clients and influencers to this fact. You must actively cultivate referrals; otherwise you're just leaving it to chance.

Referrals Start with Great Service

The foundation of great referrals is great customer service. A large part of your business can be generated through referrals. Make an investment in your business and your client's satisfaction by doing excellent work.

Characteristics of a Referral Source

Understanding the characteristics of a strong referral source, allows you to spend your time with the most qualified prospects. Below are the conditions of the optimum referral source:

Must have a relationship with your target client

Must understand your target client profile

Must be educated on what you do

Must respect you and your company

Must be respected by your target client

Must be motivated to refer clients to you

Existing Clients

You should regularly ask for referrals and you should have a formal referral program with your existing client base. We simply send a letter out regularly to our clients explaining that we would rather spend our money enhancing our services then marketing for business. We ask for referrals. We send coupons that can be distributed, business cards Nick Martin Hat , and newsletters that can be forwarded. We're not pushy; we just are up front that if they are satisfied with our services they should recommend us.

Complimentary Vendors

With other vendors you need to be more formal about your referral arrangement. The promise of mutual reciprocation rarely works. Immediate gratification does. If you're clear about the value of the client calculated earlier in this section, then be generous with your fellow vendors when they bring in a client. If you're going to make a profit of $10,000 over the life of the client Julien Davenport Hat , writing a check for $1000 to the referral source shouldn't be painful.

You may have friendships with some of these vendors but they're also business people and should be concerned that they spend time improving their bottom line. When you propose a solid cause and effect financial arrangement, you'll get significantly better results.

Evaluate all the businesses that are non-competitive but end up doing business with your target client. Examples of this are:

Cabling Companies

Management consultants

Phone Companies

Software Companies

VARs

Hardware Companies

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