How To Build A 100% Quality Referral-Based BusinessSales/Marketing Strategies  

Written by Anne Bachrach

Do you know what it's like when you nurture and cultivate a quality business relationship with a client? I mean when you've really done what it takes to earn their business, and they give you the chance you deserve? From then on, the flood gates for business and referrals open up. Do you know what I'm talking about? Have you had this happen at least once? It's a great feeling, isn't it? Wouldn’t you like to have it happen more often?

Any professional worth their salt knows referrals are the lifeblood of a healthy, successful business. Referrals save you precious time and money, ultimately benefiting your clients as much as they do you. Building a 100% referral-based business is possible when you allow your best clients to work as your marketing department; quality referrals should be a natural by-product of professional relationships built on trust and achievement. They are a measure of the quality of the relationship between you and your client.

So if your clients are reluctant to give you plenty of excellent leads, it’s a good sign they either don’t trust you or are dissatisfied with your work. This is a major red flag that should be heeded immediately and remedied by working on building more trust and improving your performance.

The purpose of this article is to provide you with a system that is designed to clone your best clients...those that are high-profit, low maintenance. Whether you are an established or new professional who seems to be stalled on a plateau, or a top-producer who wants to produce at even higher levels, without having to work more hours, this process is proven to work.

Believe it or not, people like to give referrals. But in order to get them, you typically have to ask for them. In a study done by the Toronto Stock Exchange, they asked two questions of people who have stockbrokers. The first questions was, If asked, would you provide referrals to your stock broker? 94% said they would. The second question was, Have you ever been asked by your stockbroker for referrals? Only 11% said yes. Just think of what your potential is!

You must know what you want before you ask. You must know who to ask to get what you want. And, you must know how to ask.

Some people ask for referrals by saying "who do you know who would benefit from my services." It is difficult for your clients to think so generally, so you need to help them out a little more by asking a specific referral question that will get them to narrow their focus.

        1.To start, let's take a look at your ideal client profile.

What do the top 10-20% of your clients have in common? What is their position in the organization. What is their net worth. What is their income, personality, profession, social involvement, etc.? Wouldn't you like another 50 clients just like your top 10-20%? This is exactly why we start here. These people appreciate your expertise, their time is precious and they like having quality business relationships.

2. Set up meetings to tell your clients about your referral plan, explaining to them that you’re trying a new process to improve the value you can give to them.

To receive referrals easily, you need to ask for them reasonably.

Explain how it’s in their best interest to help you out: The time you spend prospecting for new clients can’t be spent on improving your skills, which would make you a better resource for your clients. An honest disclosure about your need for referrals is not a gimmick. Simply state your need for help by asking your client to provide you with 20 names who fit your ideal client profile. Give them a sheet of paper with your ideal client profile listed and blanks for 20 names. Your goal is to obtain the names of more prospects than you can possibly see.

3. After you have all the names your client can think of, ask them a series of prepared questions for each referral.

Tailor your questionnaire to fit your business and to gain enough knowledge to strike up a phone conversation with the referral. Some questions you might want to include on the questionnaire aside from the name, spouse’s name, address, and phone of the prospect are the following: What makes you think they are serious about achieving their goals? What are their occupations/employers? What are their ages? Do they have children? (Get names and ages.) Do they currently consult a professional (such as what you can do for them)? Have they ever discussed their goals or strategies with you? What type of client do you think they’d be? Your objective is for your client to help you in the qualifying process.

4. Write a letter of introduction to each referral you received.

Follow these guidelines to send the letter of introduction, which will create your referral’s first impression about you. Obtain enough of your client’s letterhead and envelopes and have the letters printed on your laser-quality printer. Have your client sign the letters.

Suggested content for a referral’s first letter:

Dear [Referral’s Name]:

I know you are always on the lookout for ideas that will help you achieve your goals and enhance your quality of life. With that in mind, I have asked my _______ advisor/consultant/salesperson, [Your Name], to get in touch with you.

[Your First Name] is extremely professional. I feel my future is in much better shape as a result of working with [Your Name]. Take some time to meet with [him/her] so you can decide yourself if [Your First Name] can help you achieve your goals and enhance your quality of life.

Warm regards,

[Client’s Name and Signature]

Resist the temptation to stuff the envelope full of promotional propaganda or even to insert a simple brochure. Let the strength of the relationship do the work for you. When you send propaganda, you appear to be just another product salesperson who needs business.

For future mailings to these referrals/prospects, prepare a box with eight dividers for eight weekly mailings. As a follow-up to your letter of introduction, prepare a simple, brief cover letter on your letterhead, utilizing the strength of the referral. Add only one product piece. Send this to the referral/prospect one week after your first letter. You will want to mail items of value to these referrals. They can be articles that relate to physical health, relationship health, family health, financial health, etc.

Go through the referral box every week, and mail one piece to each referral. Put a reminder in your day planner or set the date in your contact-management software to call each referral during the seventh week of mailings if they haven’t already called you.

Dr. Stephen Covey says you need to make deposits into the emotional bank account. He says an Emotional Bank Account is a metaphor that describes the amount of trust that's been built up in a relationship. The more you do for your clients the more deposits you make.

5. Phone contact itself does not include any selling.

Rather, it is a discussion to see if there is a basis for you and the referral to meet. By waiting to make contact until the referrals have received several mailings, or by letting them call you prior to the seventh week, you avoid being perceived as desperately needing business. People prefer to work with professionals who are successful and not needy.

Throughout the referral and prospecting process, maintaining an expectant attitude is key. Since you know receiving referrals benefits both the client and you, expect your clients to provide introductions. When professionals don’t get referrals, there are several negative consequences: Client development not based on referrals is expensive, time-consuming and mentally exhausting.

Create your ideal target client referral system today and achieve even greater success.