If you’re in business, you know that referrals are the most cost-effective source of revenue. And you know to build referral partners into your business strategy, you need to establish relationships. This then begs the question: “With whom should I establish these relationships? “
No doubt, you’re open to accepting referrals from anyone. And you should be. But you can’t have a referral-generating relationship with everyone. So, you need to be tactical about it.
Try this: First, articulate in your mind the profile of the potential great clients you’d like to have. Then list out all those professionals who are likely of service to these potential clients. Boom! These are the people with whom you want to create a relationship. Why? They’re strategic partners. After all, they operate in the circles where you want to operate, but don’t compete with you. Thus, their clients could be good clients for you. Think about it.
In his book Beyond Referrals: How To Use the Perpetual Revenue System to Convert Referrals into High-Value Clients, best-selling author Bill Cates shares his thoughts on the litany of benefits that referrals offer. One is that referrals beget referrals. Cates shares:
“A client obtained through a referral is more likely to give referrals. And since many clients will give you multiple referrals over time, your business growth is exponential.”
Yes, Cates is correct, one referral leads to more and more referrals. For this reason, if you’re in business you should invest time into activities that build referral opportunities.
Make time to attend events where you can be known and get to know others.
Volunteer your time in the community (and allot time for your team to do the same).
Take the time to do something extraordinary for significant contacts and clients on their special days.
Invest this time in referral opportunities, as the rate of return is unmatched.