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Old 07-09-2008
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new/different thoughts on referrals
My bloglines includes a ton of great marketing blogs...one I read this morning presented some new (to me) thoughts about referrals.

Two things that really stood out...
Do it during the honeymoon. I'd never thought about it this way...why not ask for a referral when you are new and shiny? I always waited until the relationship was built and trusted. Instead Adrianne suggests, "No matter how great your service is, your firm will never be thought of as highly as when you first provide a solution. Over time, even though you might provide the same great solution over and over again, your value fades with familiarity".

Reward every step of the way. How many of us wait until the referral turns into a client to reward the refer-ee? "...when someone gives you a name or referral, immediately send him/her, say, two movie passes. They will appreciate the gesture but, more importantly, they will do two other things: They will likely call the referral up and encourage him/her to take your call (this is why communicating your progress is so important); and, They will continue to send you more referrals".
Something that I found curious is Make it an expectation. "With every new client or networking relationship, you need to introduce the ideas of referrals. In fact, the most effective referral marketing systems start with this as a stated expectation". Do you do this? This seems like a slight stretch to me. I guess as long as reciprocity is the driver it might be ok but it will end up being work for you too! I love nothing more than to make a solid connection between two people I think are really great. But, make it an expectation? Is it too much to ask?

Go here to read the whole entry from the Hot Ideas and Hot Air blog.

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Old 07-09-2008
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Default Re: new/different thoughts on referrals
This is awesome Sundi, thanks so much.

One of my clients just sent me a colleague as a referral. I think I will put something the mail for her. She also gave me a glowing reference and I've picked up a new client because of it. Maybe a Starbucks gift card.. she seems high strung :-)
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Old 07-09-2008
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Default Re: new/different thoughts on referrals
I think this is a great reminder! And yes, I do think 'make it an expectation' makes perfect sense...not necessarily in the way an 'expectation' comes loaded but just in the assumption that your clients will be blown away by how fabulous you are as a service provider and the natural progression is referrals.

One way to get the ball rolling is to include a brief bit of info about your referral program in your welcome packet.

Asking for referrals seems so simplistic, but it really, truly works!
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Old 07-09-2008
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Default Re: new/different thoughts on referrals
I don't just 'reward' my clients for referrals. I just sent some Maine Goldenrod Taffy (some of the best taffy ever!), along with a few business cards to the editor of the online magazine/blog I write for. He referred one of his blog development customers to me when they mentioned the need for a VA.
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Old 07-09-2008
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Default Re: new/different thoughts on referrals
One of my clients sets the expectation with his clients for referrals by explaining to them that when his client-base is comprised of referrals, he doesn't have to spend as much time or money on marketing - this allows him to focus more fully on their needs and keep their costs down.
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Old 07-09-2008
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Default Re: new/different thoughts on referrals
Another take on rewarding referrals: reward your client - period. Send a card, a gift card, a small gift. Just for being a great client. Not even for a referral. Just because you value them as a client. Believe me, they'll refer you and you won't even have to ask for a referral.

My husband has done this with his web design clients and gotten good results. I do offer my clients a free hour for a referral.
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Old 07-09-2008
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Default Re: new/different thoughts on referrals
Thanks Sundi. I feel like this discussion is a sign saying go for it! I've recently considered a referral promotion to kind of jump start my business. It will mostly turn out to be a monetary incentive for family & friends to REMEMBER to promote me. I've only been pondering it, but I think it's time to put the plan in gear!

Additionally, I offer an invoice discount to my clients for referrals (upon signed contract). I really like the card and gift idea. It's a thoughtful way of saying thank you.
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Old 07-10-2008
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Re: new/different thoughts on referrals
OMG...this is pretty funny! This morning I was taking care of a consultant agreement for my boss in Jobland and it says as a point in the contract...

The Client agrees to compensate Consultant in consideration for Services as follows: Blah, blah blah...4. by the active goodwill of the Client in referring Consultant to those persons or businesses which, in the Client's judgement, could benefit from the Services provided by the Consultant.
I guess we aren't the only ones who think referrals are a pretty cool gig!

Would anyone considering adding a line similar to this in their contract? What are your thoughts on putting it in the compensation area? What other areas might it fit well in?

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Old 07-10-2008
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Default Re: new/different thoughts on referrals
Originally Posted by AwesomeAssistan View Post
Another take on rewarding referrals: reward your client - period. Send a card, a gift card, a small gift. Just for being a great client. Not even for a referral. Just because you value them as a client. Believe me, they'll refer you and you won't even have to ask for a referral.

My husband has done this with his web design clients and gotten good results. I do offer my clients a free hour for a referral.
That is exactly what I do. Then on top of it, when they make a referral, I give them an extra reward.
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