This article was written by Katrina Gregory the current Membership co-ordinator of BNI’s High Flyers chapter.

Business owners tell me every day that the way they generate the most new business is through referral marketing.

Yet few of them grasp the importance of this statement.  And fewer still harness the true power of referrals by making the receiving of systematic referrals a cornerstone of their marketing efforts

If you’ve never thought about why referrals are so important, consider this:

People who are referred to a business spend more money

You can speculate as much as you like.  It’s a fact and research has proven this beyond the shadow of a doubt.  There are lots of different opinions on why this is the case.  My personal experience is that people, who are referred, are rarely budget shoppers.  Instead, they tend to be people who are seeking high quality service which consequently they’re willing to pay for. 

Referrals are credible introductions 

There is a level of trust that already exists between you and a friend or a business partner.  When they refer something to you that trust is automatically transferred to the company they are referring… even if you’ve never heard of them before.  Think about it.  Are you more likely to call the company that your friend recommends, or one that you found on the internet?

Referrals are free

What did your last advertisement cost you?  The great thing about referrals is that they’re free.  And the great news is that during times of recession referral marketing really comes into its own.  Now more than ever, people are risk averse and they’re relying more and more on the people they can trust.  The people they believe would not deliberately put them in harm’s way.  And that is why referrals are one of the best ways to build new business.

How many referrals did you get last week? 

I got five.  All of which are new business and all of which will undoubtedly lead to more referrals. 

If you’re not getting your referrals…consider these little ideas.

Quid Pro Quo

The world is based on a form of karma.  What goes around comes around.  Giver’s gain.  Whatever you want to call it, the basics are true.  If you do something for someone else, they’re much more likely to help you in return.  So here’s an idea that gets your clients generating referrals for you.  Why not offer your clients something for free when they help refer you. This can be anything linked to your product or service, which is little or no cost to you, but of value to your client.  Now this is important. Expect to get referrals but don’t assume you will. And don’t forget to talk about referrals to your clients early and often and build them into your sales and marketing efforts.  Whatever you do, don’t wait for people to offer them.

 Ask for the referral

This is probably one of the hardest parts of referrals for some people.  When I first joined a local referral network, BNI, I found this to be my biggest obstacle.  But the reality is, if you don’t ask, you don’t get….  I now give every client 3 business cards and ask them to pass it on to anyone they feel would benefit from your service.  This how been one of my biggest referral generators. 

Join a referral network

If like me, you benefit from a systematic, process driven structure that you can follow, then joining a referral network such as BNI is a great way to getting the training and first referrals that will set you up to building your own systematic referral system.  The BNI High Flyers’ Chapter which I’m a member of meets every Tuesday morning.  We follow a set meeting agenda led by our Chapter Director.  One of the things that makes it so successful for the members is that its run like a business.  For one and half hours a week you meet your 20+ sales representatives who then spend the rest of the week identifying opportunities for your business and then selling your services.

What more could you want?

If you’re interested in making referral marketing a corner stone of your new business generation, please visit the High Flyers Visitor Day which takes place on 15^th September 2009 at the Westin in Dubai.  Places are limited and you must have an invitation.

To get an invite, call today on +971 (55) 718 9233 

Katrina Gregory

Writer

Tel: +971 (55) 718 9233

kat@KatrinaInk.com