Five Tips For Getting Referrals For Your Small Business: Part 2
Posted on November 29, 2010 by Nathan R Mitchell, One of Thousands of Business Coaches on Noomii.
Nathan R Mitchell, Small-Business Consultant, Tulsa OK, Springfield MO, Dallas TX writes about the importance of getting quality referrals.
Several weeks ago I wrote an article about effective networking, and how the small-business owner can use traditional networking to grow their business exponentially. This week, I am addressing Part 2 of that article, which deals with getting referrals from your existing network, so you can continue to grow your list and potential client base. Successful small-business owners are aware that referrals are critical to the continued success of their organization. In fact, some studies show that referrals can account for as much as 26% of new income for a small-business.
Unfortunately, a lot of small-business owners are not as effective as they could be in getting referrals from their existing network. In fact, I would venture to say that the majority of contacts the average small-business owner has in their database are significantly underutilized when it comes to getting referrals. And that is why I have decided to write this post–to help the average small-business owner get more referrals from their existing network so they can continue to grow their business and their profits!
Here are five tips the small-business owner should take into account when creating an effective strategy for increasing the number of referrals they get from their existing network:
1. Be proactive in the building of your referral network: Far too many small-business owners get referrals at random, and many of them are not even solicited. If you want to effectively build your referral network, you must be proactive. Don’t wait for the calls to come in; instead actively seek out new contacts, build mutually beneficial and sustainable relationships with them, and cultivate the relationships you have with your existing network.
2. Keep track of where your referrals are coming from: Small-business owners often struggle with time-management. They simply have too many hats to wear, so make sure you are spending your time with those in your network that are providing the most benefit to you. Don’t neglect your relationships with those who don’t give you referrals, but don’t waste your time trying to get them from those in your network that aren’t giving them to you.
3. The best way to get a referral is to GIVE a referral: How many referrals have you given to your network? Let’s face it, sometimes you simply have to earn them! The most ineffective way to get referrals is to ask for one right after you meet someone, or right after you make a sale. Before you ask someone for a referral, ask yourself, “Have I delivered value to this new contact or customer?” If you haven’t added value to them first, your chances of getting a quality referral go down significantly.
4. Become the expert: If you are considered an expert in your specific field, this will help you attract new clients and referrals. When was the last time you were active in a trade association? When was the last time you game a public speech, wrote an article for someone else’s website, or posted new content on your blog? All of this helps build credibility in the business community, and will increase your chances of getting quality referrals.
5. Think outside the box: Don’t limit yourself to contacts within your specific industry. There is no law that says you can’t cross industry lines in your networking activities. Make a list of everyone you know: family, friends, existing customers, people you have done business with, gone to church with, etc. Ask yourself, “Who among this list might be willing to give me a quality referral for my business,” and then contact them–but make sure you don’t forget to add value before you throw out your agenda.
In conclusion, this is only a handful of tips to get you started in increasing referrals for your small business. To continue your study on networking and getting referrals, I highly recommend the book, “Little Black Book Of Connections: 6.5 Assets for Networking Your Way to RICH Relationships,” by Jeffrey Gitomer.
Keep Winning!
Nathan R Mitchell is the Owner of Clutch Consulting LLC, a Small Business Consultant, Leadership Coach, and Professional Speaker, Tulsa OK. For more information on Nathan R Mitchell, or Clutch Consulting LLC, visit www.clutchconsulting.net
