Over the years, I’ve asked colleagues and friends to refer me to consultants, freelancers and others I may need to hire for different projects. Sometimes the referrals work out, and other times they don’t. When I find someone who does a good job for me, I do my best to promote their business to others.
It make sense that if you’re good at what you do, referrals should come easy to you, right? That isn’t always the case. Some people may automatically refer you to their friends and colleagues, but others may need additional incentives, including the ones below.
Prepare to pay.
When you meet someone who could refer business to you, offer to pay him or her a percentage of any sales you make from a referral. Get to know the person first before you make the referral offer. Otherwise, your offer may border on creepy.
Pay right away.
When you finish a project that came from a referral, pay the person who made the referral immediately. That will encourage the person who referred you to one project, to refer you to others. When a prospect contacts you, don’t forget to ask how he or she heard about your company.
A task for a task.
Instead of paying someone for a referral, offer to barter services instead. Let’s say you’re a Web designer and you need furniture or supplies. You could offer to create a site for a furniture retailer or office supply company. Keep in mind that bartered products are taxable. Check with your CPA to make sure you pay the right amount of taxes.
Work together.
Cross-promotions are another incentive for referrals. If you’re sending a mass e-mail to your clients about your products or services, include information about someone else’s company. Ask the person whose information you included in your mass e-mail to include your information in one of their mass mailings. By working together, you can reach more prospects.
What referral system has worked well for you?
Hi Lisa,
Great suggestions for getting referrals. Bartering is a great idea and partnering with someone and paying them to provide the referral are also great ideas.
I am in the process of adding other experts to my virtual assistant team so we will partner and each get a referral fee as well.
thanks for the suggestions,
Cindy
Cindy Murphy recently posted..What Is A Virtual Assistant?
I like your plan of adding others to your team, especially because you’ll be referring professionals whose work you know and trust. You won’t have to worry about someone doing a bad job and hurting your company’s image.
Lisa recently posted..How to Get More Referrals
I have a problem with that suggestion, Lisa. I fear that if I pay someone for a referral, it will backfire and some would consider that referral less truthful. I know you think folks won’t know about it, but invariably I have seen the “loose lips” syndrome.
I would feel less concerned if a client referred someone to provide that client with a thank you gift. Unless the client who was helping promote my business offered to host a seminar or meeting where our services would be highlighted- then compensation could be provided and expected.
RAAckerman @ Cerebrations.biz recently posted..It’s a new gig. How do you approach it?
I understand your point of view, but I’ve seen cash referral deals executed successfully, several times. If someone refers someone just for the money, eventually it will catch up with them. At this point in my career, I don’t take referral fees and refer people because I believe in their abilities. I don’t have a problem with others doing so, so long as they’re referring others for the right reasons.
You’re right that thank you gifts are a good idea, but unfortunately some companies don’t allow them. It’s become a fine line. I always enjoy your insightful comments.
Lisa recently posted..How to Get More Referrals