“Referral Power – Reach Further. Spend Less” Chapter 5
You’ll be receiving each chapter via email over the next few weeks. Keep an eye out for Chapter 6 in your next email from BOSS.
Table of Contents (for previous chapters)
- Introduction
- Section 1: Client Referrals
- Chapter 1: Make Asking for Referrals a Part of Your Process
- Chapter 2: Following Up on Referral Commitments
- Chapter 3: Set Referral Goals
- Section 2: Building Powerful Referral Alliances
- Chapter 4: Tap into More Markets with Less Marketing Money (Forge Business Referral Alliances)
Chapter 5 – Filling in the Sales Gaps
There are more ways in which business referrals can help your own business’ sales.
Be Their Plan B
In this strategy you become Plan B for a business when Plan A (sell their own wares) fails. It’s not how they’d prefer things to go, but it’s a far sight better than making absolutely no money at all off of a sale which is going to happen somewhere.
For example let’s say you make men’s business-appropriate jackets. You go to a high-end retailer with its own designer label.
They position themselves as the Rolls Royce of men’s jackets. They spend a lot of money on advertising, but of the people that the marketing brings in only 10% are able to afford their line of clothing.
That leaves them with 90% of the people they bring in as complete no-sales. 90% of their marketing money walks out the front door.
So you offer them a deal. When they can’t sell their own product, they will then attempt to sell yours. If they can’t sell your product then, they’ll give you those leads to follow up. They get what is essentially a commission and you get a sale based on being associated with their top tier name.
You’re helping them recoup all those lost leads and advertising dollars, and you’re getting clients without putting out any marketing money at all.
If they’re still hesitant then you can remind them that these people are going to buy a coat somewhere – and if it’s not from them then it’s going to be from somewhere else. Why not get some revenue from the person who is inevitably going to buy a jacket from someone?
Get Your Competition to Make Your Sales
Oddly enough, you can even get your competition to make sales for you.
Let’s go back to the health club example. Your competition doesn’t have a swimming pool at their gym, but you do. A potential client says no to your competition because they don’t have a pool. But you set up a deal so they still make a commission by sending the prospect to you instead of to another competing club. A discount voucher system would help to encourage the prospect to follow through and so you can track referrals being made by the other gym.
The key phrase here is, “If you can’t sell yours, you’ll still make some money by selling mine.”
More Business Referral Examples
Are you an expert in something? Can you give a lecture or class? Contact businesses in your chain and have them recommend your class to their clients for a percentage of each ticket sold. You get sales from the class and the chance to convert attendees into return customers, as well as positioning yourself in their minds as the go-to person in your field, which will result in even more referrals.
These lectures can also relate back to sales for the referring company.
For example, if you are a financial planner, approach an accounting firm to recommend your lectures for middle-income people who want to start investing. The accounting firm now gets the kudos for arranging financial planning seminars and may get more business from their existing clients who need extra help with organising their finances to invest with the financial planner.
Find even the most tangentially related businesses for partnerships. For example let’s say you’re involved in home construction. There are a ton of companies that you can form a chain with (possibly offering discounts for grouped buys from clients) – landscapers, contractors, painters, plumbers, carpenters, furniture sellers, interior designers, architects, pool installers, realtors, and so on.
