Two Sides of Referrals
July 17, 2012
Regardless of source, referrals offer rich benefits.
People who have been referred to us are in effect pre-qualifed leads. Before making the recommendation, the referrer mentally matched what the potential client was looking for with you and the services that you offer. If the referrer believes that there will be a good fit between you and the potential client, the referral is made.
On the other hand, if the referrer does not believe there will be a good fit, no referral is made. In effect, non-qualified prospects are usually screened out.
Third party recommendations and referrals are believable endorsements. Potential clients see them as more objective and believable than paid advertising and promotional material.
Once you start to satisfy clients, you can also start to easily generate referrals. Usually, often all that is necessary is to make the appropriate request.
Financially, referrals are among the most profitable marketing strategies available. Generated at low or no cost, a single referral can generate thousands of dollars in revenue.
Referrals do however have their downside.
No Fast Results
First, it takes considerable time and ongoing action to develop an ongoing and sustainable flow of referrals. The smaller your network of contacts, the longer it will take to generate a steady flow of leads.
Your network must be maintained and nurtured. It’s also necessary to continuously keep in touch with clients, contacts and potential referral sources.
To learn more, see How To Generate More Referrals.