<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=290086984736480&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

Business Bread and Butter: Maximizing Referrals from Your Sources

Jun. 10, 2013 | Posted by The Alternative Board

The Bread and Butter of Business Customers

If you run a business that is truly valuable to your customers, your network of sources will want to help their colleagues by referring your business to them. Small business owners repeatedly admit that referrals are their best method of acquiring and retaining good customers, thus cultivating good referral sources can be the bread and butter beneath a banquet of good business.

Good referral sources vary by industry. In any industry, a good referral sources is someone of influence. They are trusted, respected, and have a wide network of contacts with a similar profile to your customers. When considering approaching a referral source, you should only consider one to whom you are willing to refer your best customers.

One common mistake businesses make with referral sources is not realizing it is two-way street. Both parties need to receive a steady stream of referrals in order for the relationship to work. Therefore, in order to get the attention of a potential referral source, call them and explain that you have heard great things about their business and would like to learn more about it so that you can refer your clients to them. This will likely lead directly to a productive meeting where the source will learn about your business and be in a position to refer their contacts to you.

Want additional insight? Download Hiring a Business Coach for Your Small Business now 

DOWNLOAD

Once you have established contact and agreed to joint referrals, you need to nurture the relationship with the referral source. You should contact each referral source at least once monthly. We recommend the 5-to-1 rule: for every 6 contacts with a referral source, 5 of those contacts should not ask for a referral but instead should seek to add some value to the referral source. Keep in mind the Law of Value from Go-Givers Sell More: Your true worth is determined by how much more you give in value than you take in paymentUltimately, this leads to greater sales success.

What are ways you have cultivated your greatest referral source?

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board

Related posts

Email marketing best practices you need to know...
Mar. 5, 2020 | Posted by Jodie Shaw
If you’ve been collecting email addresses for awhile, chances are you have hundreds or even thousands of names on your list. That’s a great start. But now what? Done correctly, email marketing can...
The Best Business Practices: What You Need To Know
Feb. 27, 2020 | Posted by The Alternative Board
As business scales, circumstances change, and every company must adapt to new situations. Some businesses decide to experiment with different solutions to find out which suits their needs best. While...
Boost Retention by Building a Great Workplace Community
Jan. 30, 2020 | Posted by The Alternative Board
The term “company culture” gets tossed around a lot lately, and it’s true that a strong corporate culture can make a big difference in boosting employee recruitment and retention. But, increasingly,...
How To Find And Keep Profitable Clients in Your Business
Aug. 13, 2019 | Posted by Phil Spensieri
In my previous blog, I discussed why diversifying your client base is important for your business’ profitability. Once you’ve targeted the right people, how do you go about keeping those profitable...
3 Ways To Ensure Profitability By Diversifying Your Client Base
Jul. 30, 2019 | Posted by Phil Spensieri
Diversifying your client base can offer incredible opportunities for your business, and can serve as a way to protect your business from revenue fluctuations, create ongoing growth, and increase...
7 Tips for Managing Millennials on your Sales Team
Jul. 25, 2019 | Posted by The Alternative Board
We often hear that millennial employees are a breed apart, and require a shift in management style and perspective. The same can be said about a millennial sales team and what’s needed to effectively...
What's the Difference Between Business Development and Sales?
Jul. 18, 2019 | Posted by The Alternative Board
At first glance, there doesn’t appear to be much distinction between business development and sales. Aren’t both activities geared towards generating more profit for the organization? Isn’t a sales...
A Quick Guide to Crafting an Effective Call-to-Action
Jul. 11, 2019 | Posted by The Alternative Board
With all the talk about content marketing and direct mail marketing that businesses must try to keep up with, one essential element sometimes gets lost in the mix. Improving click-through rates to...
5 Customer Acquisition Strategies that Spur Growth
Jul. 9, 2019 | Posted by The Alternative Board
Maintaining a strong base of existing clients is essential for every business, but acquiring new customers is equally important. Without an influx of new and prospective customers, a business may...
The Reality Factor: How Direct Mail Marketing Is Changing
Jul. 4, 2019 | Posted by The Alternative Board
Is direct mail part of your current marketing strategies? Using tailored messages to attract targeted prospects is a valued marketing tradition. This encompasses a broad range of materials, including...