This can be a very good way to gain extra business, but only use companies that you know are reliable and will deliver what they promise. If they let down people you refer, this bad service will become associated with your business which is not what you want.
If you want to undertake this type of operation, ensure the company is in the same type of business as you so that their services are complimentary to yours. By beginning this process, the company or companies will reward you with similar reciprocation from their business.
On a web site, you can add a link to their site with some information or even e-mail them directly recommending the companies to them.
Swap Referrals with Competitors
I know at first this seems to be a stupid move, but if the lead is not buying from you and seems interested in the products and services you are offering, then one way to possibly monetise the lead is to recommend a competitor’s service or product. The hope is that your competitor might reciprocate and direct some of his dead leads in your direction.
One thing that it will do, and will be noticed in the marketplace, is point you out as an ethical supplier by recommending a competitor’s products to satisfy a customer’s needs if you, as a company, cannot supply the product or service they need.
Use An Affiliate Program
This is the ultimate referral system where you set up a full affiliate program and get people involved in selling on your products for a share of the cost. This can be a very lucrative step for your company although you can be giving away quite a percentage of the cost.
One downside is the amount of work that is needed to set up a good affiliate programme as your affiliates will expect all sorts of information at their fingertips to allow them to promote your products.
Question Prospective Customers Who Decline Your Offers
If you have prospective customer address details and they decline your offer, it can be worthwhile to ask them two things:
- Why did they not buy your product?
- Can they recommend someone they know who might be interested in your offering?
You can create something on, say SurveyMonkey, and look to people to reply and, to sweeten the question, you can offer them a discount on a future product if they complete the survey!
Encourage Staff To Get Referrals
If you have staff, encourage them to try and get referrals off the people they are speaking with and reward them on future sales from their referrals.
For not doing much extra work, your staff might find some extra money in their pay packet. Make sure that this is known to other staff through staff notices, etc.
And Finally, Track Referrals
I have given you a number of different ways to get extra business from referrals, but it is important that you track your referrals to see which ones are working and which are not as you can drop those that are not showing results and increase you effort on those that are working.
I hope these two postings have been useful and if you missed the first, click this link Profiting From Referrals which will take you to the first posting.
As I asked in the first post, do you have any referral systems in place? Have these articles made you think you need something? I’d love to know so use the Comments box below and let me know!