and How to Create a Referral System that Does.

Are you someone who says .. "I get most of my business from word of mouth" ? 

Following are excerpts from two emails I recently received from subscribers to my newsletter:

Excerpt 1:
"We have never lost a customer, so that speaks to their level of satisfaction. However, I am very frustrated that…we constantly receive praise from all of our customers, but never any referrals."

Excerpt 2:
"We get most of our clients from word of mouth. However, I am not sure how to get even more referrals from clients. Some give lots of referrals, and others give none."

Whenever a client or contact says that they get most of their business from "word of mouth," I know that they are missing an enormous opportunity to double or triple their business.

Word of mouth is not a marketing or communication system at all, but rather a reliance on the good will of well intentioned people. If you depend on word of mouth to get projects, then you essentially are hoping and praying that busy people will always remember to mention your name with everything else they have going on. You are relying on luck and happenstance, instead of on a proactive marketing communication system.

At the same time, many service based professionals are fed up and frustrated with the need to cold call, pitch their services, and market to prospects that treat them - frankly - with little respect. As a consequence many such people back off in marketing what is their passion and a tremendous service. Who needs to go through the indignity of cold calling in order to pitch what you know to be an excellent service offering?

There is another way.

Many service based professionals have created proactive referral systems that grow their business for them. Once you develop a referral system, you can take advantage of an automatic stream of business, and your marketing changes forever:

• You stop making cold calls.
• Prospects already trust you when they get in touch with you. They perceive you to be an expert, not another salesperson or generic vendor. That's because someone they trust told them about you.
• Referrals come to you. You don't have to keep chasing them.
• You spend a reduced amount of money on marketing for a higher return.
• You enjoy your work more, because you don't have to make pitches or "hawk" your services ever again.

There is an art and science to building a referral system. A proactive referral system is very different than word of mouth. Most service based professionals have an enormous opportunity to shift from word to mouth to actual referrals as a part of their total marketing and communication system - but don't have any idea how to do it.

That's because nobody ever taught them how to ask for referrals, and how to quickly create a network of people who have good reasons to refer business their way.

A better approach is to create a proactive referral machine that grows your business for you - without relying on luck. Following is a comparison of word of mouth vs. a referral system:

Once you develop a referral system, you can take advantage of an automatic stream of business, and your marketing changes forever:

• You stop hoping that others will do the right thing by you.
• Prospects already trust you when they get in touch with you.
• They perceive you to be an expert, not another salesperson or generic vendor. That's because someone they trust told them about you.
• Referrals come to you. You don't have to keep chasing them.
• You spend reduced time and money on marketing.
• You enjoy your work more, because you don't have to make pitches or "hawk" your services ever again.

There is an art and science to building a referral system. A proactive referral system is very different than word of mouth. Most independent professionals have an enormous opportunity to shift from word to mouth to actual referrals - but don't have any idea how to do it. That's because nobody ever taught them how to ask for referrals, and how to quickly create a network of people who have good reasons to refer business their way.

The Next Step:

Do more than just intend.

Let me explain that further

•   I have 12 tennis balls.
•   I intend to hit 6.
•   How many are left?
  

Twelve

Remember I only intended to hit 6 balls ...
I haven't hit them yet.

Ok so this sounds gimmicky and a bit esoteric, what I'm really on about here is showing you that it's ok to think about, write down, muse, dream or talk about what you want to do.

Remember your biggest obstacle to your success is the absence of execution.
Whether you choose ...

•   Advertising
•   Cold Calling
•   Current Client Referrals
•   Direct Mail
•   Existing Network Contact
•   Networking (breakfasts, industry forums)
•   One-on-One meetings
•   PR (Public Relations)
•   Speaking (presentations, workshops, teleclasses)  
•   Sponsorship
•   Strategic Alliances
•   Writing (articles, newsletters)

Please don't delay in taking action, for these reasons:

1. Your clients - and other people in your network -- already know people that need your services. They haven't told you about them because you haven't asked them, the right way. The longer you wait, the more opportunities you pass up, and the more potential growth you lose.
2. The sooner you implement these strategies, the sooner you can stop communicating what you do the traditional, frustrating way.
3. Some of your competitors (competitors can be totally unrelated to you or your service) know how to ask for referrals, and are winning clients and projects that could have been yours.
4. There are a limited number of top referral sources in any market. Get in touch with them before your competitors do!

Good luck with your action and remember as always I'd love to hear about your successes and disappointments.