Referrals are a big part of any business. They say, on average, by the time we are 18 years old we will each know around 500 people who also know us by name too. We don’t all know the same 500 people, so we can use this to increase our database easily.
Everyone starts with a database, but what a lot of people don’t do is write it down and if they do, they only write down those people they think will be interested in their business and not all the names they can think of. My top tip to you is write down every name you can think of, because you might be wrong – they might be interested in what you’re offering, maybe not straight away but in the future. So, there are 500 names to start you off. Now, back to referrals…
Imagine you asked each of your 500 contacts for 10 referrals. 10 names and numbers, by doing that you would increase your database by 5000 people! Why stop there; imagine you then ask those 5000 for 10 referrals…you get the picture. Not everyone you know will refer 10 people to you, but some will; some will offer 1 or 2 names, some 5 and some more. The point is if you don’t ask you don’t get!
Getting referrals from your warm market (friends and family) is a great way of maximizing your time. Why? Because they are a quality hand-picked referral from a friend who knows what you are looking for and they have passed on those details to you, so when you call the referral, you have that original friend in common. It’s like they’ve been part-sold to already, because you know and trust the same common person, therefore they are more likely to listen to you and your business proposition.
How else can you get referrals?
I always train people to start with their warm market, namely their friends and family as they have already built a rapport with those people. What happens when you’ve gone through your warm market, or need more people, or just aren’t getting enough referrals? Well, there are plenty of other places you can get referrals from:
This has totally transformed the way business is done and now makes it very easy for you to advertise your business around the world quickly. It also allows you to gain followers, post information and gain referrals from people you might not have otherwise met. They are free business tools so use them. In my experience Facebook and Twitter are a must but I also use Google+, LinkedIn, Instagram and Pinterest.
As co-director of networking company Networking Mummies Uk Ltd I have experienced first hand how important networking is when growing a business. Lots of people make the mistake of thinking networking is about the people in the room at that meeting, but they sometimes forget that every person in that room has a network of contacts to. Sometimes it’s not the person in the room that can help you but a referral of someone they know could benefit you and your business. This could be your next team member, client, coach or customer for example.
There are lots of other ways you can build your referrals and your database and I’m happy to help you if you need further guidance.
Do you feel like this is an area you could improve in? Why not book me for an hours mentoring and we can use that time to practically build your database and referrals and get you ready to rock in 2014!