Do referrals come when you network? Or does your ability to network help you increase your referrals.

Both, obviously.

It amazes me, though, how most professionals see each as a separate marketing task. I heard it said that if you want to learn how to ask for more referrals, just become a better networker. That’s true to an extent.

At the heart of people who get a TON of referrals and referred-business–consistently-you’ll find this one common trait.

That trait is someone who networks well.

Whether it be in building their own close social circles, or being out in the community, chances are their business is thriving because of the networking they’ve invested in.

Here’s a great article by Michael Taylor that gives you further takeaway.

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“Professional Networking is the Key to Business Success”
by Michael Taylor

Networking itself is the term given to the building of contacts in a professional manner which will ultimately help you have the support group which you need for success. Networking can refer to cultivating friendships with professionals in many different fields, giving you the best chance for finding additional contacts or sources for business transactions.

It can also refer to the way in which you go out and find potential clients. Ultimately, it’s a way for you to reach out and start making a difference in the impression that you make on the way that you do business. A B2B directory can be a great first step in helping you to make that impression.

You will find that, after you have joined a B2B directory, that you’ll have a wealth of knowledge immediately made available to you. One of these directories has a wide array of professionals listed within, helping you to find someone who is going to give you the resources that you need when you need them the most.

If you are looking for a professional in a certain area of business, you can look in the directory to find someone who fulfills those conditions. This will help you develop your professional networking skills, giving you the best opportunity for making long lasting contacts who you can develop a business relationship with.

Professional networking is one area of business which cannot be given enough attention. People want to do business with individuals who they feel they can trust, which is why you will want to put plenty of time into the manner that you craft relationships with those individuals.

When you are able to join a B2B directory and offer your services to people all around the world, you’ll find that it becomes easier for you to get the assistance which you need in return.

The more people who you meet through professional networking, the more valuable you will become in a business setting. Considering that so much success of business is related to knowing the right people, when you have the necessary contacts, you will be able to make calls when they are needed the most.

That will help you to push business deals through and give you more of a likelihood of completing all of your goals on time and on budget. A B2B directory could ultimately give you all of these contacts in one simple place.

Professional networking will require you to more than simply join a B2B directory, however.

Once you are a member of the directory, you are going to need to take the time to build relationships with the members inside of the directory who you feel will give you the better chance of professional success. This can take time, so you will always want to be working on the way in which you cultivate your professional relationships. Time will need to be spent on the personal interactions that you have with these individuals so that, in the end, you are able to turn to them when you need something.

Figuring out how to use a B2B directory can benefit you greatly as you get the necessary edge with professional networking. Turn to Madison Whos Who for the tools you need toward promoting yourself in a lasting manner.

Referral Marketing or Networking: Which?

But should you budget money to spend on your referrals or networking activities each month this year?

Obviously, most people know that networking and referrals go hand-in-hand. Referrals become a by-product of networking efforts you put forth. And, in fact, many would argue, (and I’d agree) there’s no higher return on investment of your time (in terms of the earnings you generate) than actively networking.

 [This article is a guest article, contributed by guest contributor Stephen Labuda]

“3 Reasons Why Networking Should Be A Part Of Your Marketing Plan”
by Stephen Labuda

One of the first things that business owners cut from their budget when times get tough is marketing. Oftentimes, a business can be spending as much as 40% of their budget or more just on marketing alone. This huge number looms large as the business owner looks at the other bills they have to pay.

This leads many to slash it or remove it altogether. The question then becomes, if you are not marketing, how will you get new clients to pay the other bills? This is why getting rid of marketing makes no sense at all. Business owners should instead look at more cost effective ways to generate the business they are looking for.

One technique that is tried and true is networking. Going to networking events to seek new clients and business relationships is a fantastic and proactive way to keep your marketing alive even in a down economy. Let’s look at 3 reasons why networking should be an important part of every marketing plan:

1. It is inexpensive-In most cases, networking is probably one of the most inexpensive marketing tactics you can use to grow your business. All you need is a few business cards and perhaps a small entry fee to the event. Most networking events cost less than $30 to attend and feature 75-100 people or more. Those 75-100 people collectively know thousands upon thousands of people that you can bring into your network as well if you handle yourself properly. Compare this with a $2500 yellow pages ad. If someone is looking for what you do, and your ad stands out from all the other ones in there, they may choose to call…even then, there is not guarantee you will get the business. Networking is cheap, but effective.

2. You have control-With a normal advertising/marketing program, the control is pretty much in the hands of the person you pay to do the work. They decide how the campaign plays out and ultimately, if you will get results or not. This can be a scary thing when it is YOUR money they are playing with. Networking puts the control in YOUR hands. How many events you want to attend, how many people you want to meet, what you say to them, all of that and more is in YOUR control.

3. You can see results almost immediately-Another reason networking should be a part of your marketing plan is that you can see results very quickly, even if YOU are the one taking action. For instance, if you made a great contact at a networking event, you might choose to call them the very next day and set an appointment. You never could have done that had you not attended the networking event. With traditional marketing campaigns, you have to wait for potential clients to contact you; that wait can seem endless especially if you need clients NOW.

As you can see, networking provides some pretty valuable benefits over and above traditional marketing plans. For these reasons and many more, you should definitely include networking as one of your most valuable tools in your overall marketing strategy.

Stephen Labuda is an entrepreneur who built his businesses through networking. You can connect with him through the Boston Networking group website.

This includes getting referrals from strategic alliances (ex: CPAs, Attorneys, Investment Advisors, Realtors, Insurance Agents, Mtg. Brokers, etc.)

If your plan this year includes increasing your referral flow, don’t overlook the advice today.

[This article is a guest article, contributed by guest contributor Darek Daniel]

“The Words a Picture Cannot Say to Your Customers”

We’ve all heard of the saying that a picture is worth a 1,000 words, but business owners beware. Don’t take this saying literally when it comes to your advertising. Too many times business owners make the mistake of trying to be too clever or creative with their marketing pieces that their message becomes muddled or unclear to their target market.

Although you probably don’t want to use 1,000 words in your advertising, words are an important piece to your marketing and should complement your graphics and help get the message across. There’s nothing worse than spending the time and money on an advertising piece only to find in the end that no one gets it. Sure it may look great, but is it effective? Remember, there are several important messages your clients should get when they read your advertising piece.

1.  
   1. Who are you? You spent all that time on your advertising, but can your client immediately identify what your company name is? If your logo and company name aren’t immediately apparent in the design, than you have no branding value to your marketing piece and it’s time to rethink your creative.
   2. What do you do? I can’t tell you how many times this happens. Business owners get so involved in the aesthetics and the cool factor of the design that they forget the entire purpose of the piece. If you can’t tell from looking at your design exactly what your company does, why bother spending the money?!
   3. What do you want your clients to do? Ok, so you’ve sent them this great advertising piece. It has your company name on it, and it clearly states what your company does. Great. Now what? What should your clients do about it? Should they call you? Should they visit your website? Set the expectations for what you want to happen by including what’s called a call to action. This is marketing speak for tell your clients exactly what you want them to do. Literally use the words, “Call 555-5555 now for an appointment,” or “Visit our website today at www.prova.fm.” Remember to keep it simple!
   4. Why should your clients follow through? Now that you’ve told your clients what you want them to do, give them a reason to do it. Offer them an incentive to pick up the phone and call your business. Whether it’s 10 percent off or buy one get one free, it doesn’t matter as long as it’s an attractive enough offer to entice people to use your products or services.

Offering incentives also gives you another great benefit besides bringing in new customers. Incentives allow you to track your marketing efforts. Not following me? If you offer a 20 percent discount only to people who have received a certain advertising piece, then when they call asking about it, you will know where they found your number and ultimately you can track the effectiveness of your marketing campaigns. Try to make sure each marketing effort you employ gets a different incentive. This will make it possible to track your efforts.

Creating great advertising pieces that draw your clients’ attention with attractive graphic design is just the beginning of a successful marketing campaign. By keeping these rules in mind when you create your pieces, you will ensure that your advertising efforts will not be in vain.

Darek Daniel is a marketing writer and branding professional for Firefly Writing, & offers weekly advertising help for small businesses at Prova.fm. For more information on how your small business can benefit from the design services mentioned in this article, you can visit http://www.prova.fm. For more resources on this topic, visit our blog at http://advertisinghelp.wordpress.com/.

One question I’m asked a lot is…

“How do I host my own Continuing Ed Workshops–award CPE credits–and get CPAs, or others to attend?”

Very good question, and it’s easier than you might think with the right direction.

I talk about this in depth in my new CPE Workshop Guidebook.

Let me give you some suggestions from the context of building referrals from other centers-of-influence, such as CPAs, Insurance Agents, or Attorneys.

After all, these are the professionals most apt to be interested in attending a CPE workshops to earn continuing ed credits so they can maintain their licensing or accrediation.

Here’s are a few pointers, say… if you’re after CPAs (accountants) as potential referral sources, for example.

1. Pick a relevant, timely topic for CPAs.  It might be:
   “Tax Considerations for 60+ Year Old Retirees.” Again, keep it timely and relevant
2. Decide on your presentation format. Powerpoint? Roundtable? Classroom style? Group interaction? What? There’s a number of choices to make.
3. Pick a comfortable venue. This could be your office, but I prefer more neutral territory such as  a country club meeting room, for example.
4. Invite qualified CPAs to attend. CPAs specialize in certain areas: tax prep, financial planning, audit, etc. Invite those whose expertise fits with your topic.
5. Create activities that allow for networking and group interaction. This is especially important for you, the host of the event. You want to encourage group-speak, rather than you’re own personal lecture.
6. Decide who the teacher of you CPE Worshop will be. Will it be you? Someone else in your firm? Someone outside your company that you hire as a faciliator?

At a minimum, when you learn how to host your own CPE workshops, you instantly postition yourself, as:

• A leading expert in your city/town, offering a Workshop format no one else is doing.
• An authority who cares about CPAs and presenting professional advice to them.

This translates into relationships. And relationships translate into new business opportunities and referrals.

Use CPE workshops in your marketing aresenal. They are incredibly powerful.

They’ll quickly tell you whether you will enjoy great success with your referral marketing efforts or… get the same ol’ results in your business that you’ve been experiencing.

The first diagram below is based on the  “80/20 Rule,” called the Pareto Principle.

Basically that universal Rule states that 80 percent of your effects (ex: results in your business) come from 20 percent of your causes (ex: your efforts).

Or, said another way: 80 percent of your income comes from your 20 percent of your clients… or… 80 percent of your success comes from 20 percent of your marketing activities… and, so on.

In my 20 years of experience, the same can be said of building your business by referrals and word-of-mouth.

But let’s relate this to something else, shall we?

THE DOLLARS YOU SPEND

For example, the typical person running their own marketing budget is likely gonna spend 80 percent of their dollars on traditional marketing (advertising, branding, online marketing, public relations, direct mail, etc.)

The remaining 20%, they toss at referral marketing (if they’re lucky).

Note: I’m being over generous when I say 20 percent is spent on referral marketing. Most professionals spend way less than 20 percent of their marketing bucks on referral marketing (if they spend any money at all.)

So visually speaking, our marketing-spend looks like this:

You probably can relate to that diagram in your business, agreed?

Lessons: a) Start viewing your referral marketing activities (the red area above) as a legitimate marketing line item. b) Make a commitment to expand the red area. c) Begin allocating more of your marketing budget towards referral marketing activities.

But before you do that, let’s flip the diagram upside down to see if this makes most business sense for you now, shall we? Let’s re-focus on the green area:

So what just happened here?

First of all, you’ve re-allocated 80 percent of every dollar you spend going foward on the highest possible payback activity, giving you the fastest return on your investment of cash and time: Spending your dollars on your existing clients and your colleagues.

This creates freedom and peace of mind in your life. And it makes things in your business much more enjoyable for you.

I won’t go in to all the reasons for this. I’m sure you understand it already (established credibility, known relationships, proven work, minimal risk, etc.)

Secondly, you can reasonably project an average ROI scenario. And one that is larger, too.

Right now, you pretty much know that for each client or colleague you engage, you’ll have a certain closing ratio and earned-revenue scenario. Maybe it’s 30-50 percent, let’s say. 

You can say with certainty that those ROIs are a much higher percentage because you are marketing to established relationships rather than complete strangers.

Said another way: Would you rather enjoy a 3% success rate on your client acquisition efforts (direct mail/newspaper ads), or a 30, 50, 70, or 90 percent success rate (introductions and referrals).

But something else even more powerful is going on here.

Let’s look at the diagram again now:

What if you took 80 percent of those new referral marketing dollars you are using for acquisition, and split them equally (for arguments sake) into two separate line items (buckets):

Spend 40 percent of your dollars on your current clients; spend 40 percent on your Centers of Influences (COIs) & Strategic Alliances (SAs)?

What could that yield you in terms of ROI? 

Have you ever thought seriously about this?

Have you ever run some numbers that would tell you how much more money you’d be making?

Here’s a free tool that can do just that for you: The Referral Multiplier Tool.

I’ll bet the ROI is a lot more than throwing away 80 percent of your money on the same old traditional marketing and advertising that you’ve been doing.

“So what types of referral marketing activities should I do with 80 percent of my budget reallocated to referral marketing activities?”

That’s a topic for another time. But I will say that you’re only limited by your imagination and some basic organization skills.

Here’s just a few that I threw together quickly:

40% Referral Spend – Clients

1. Appreciation Dinners
2. Private Wine-Tasting Event
3. Museum Luncheon Tours
4. Orchestra Recital
5. Appreciation Drawing Twice Yearly – Caribbean Cruises, Broadway Tickets, etc.
6. Spa Day/Tennis Day/Golf Pro Day

40% Referral Spend – Centers of Influence (COI) & SAs (Strategic Alliances)

1. Incentives for Referrals (referral rewards)
2. Spa Day/Tennis Day/Golf Pro Day
3. Joint Event – Speaking, Radio, Television
4. Chef’s Table and Joint Networking Mixer
5. Tour of Facilities and Catered Dinner

Obviously such a radical shift in your marketing spend–from 80 percent of your budget going toward traditional marketing/advertising… cut down to 20 percent–is a serious move. And you have to balance the impact on your cash-flow and operations. I respect that.

You might even have to take a step back for the next 3 to 6 months.

But serious times often call for serious measures. And at a minimum, it will cause you to consider some serious thinking… especially if you want to get to the next level in your business.

As they say, keep doing what you’ve always done, and you’ll always get the same results.

So start thinking 40/40/20, not 80/20!

Again, it might not be something you are able to do immediately; but over the course of the next 6 to 12 to 18 months, it may be quite doable to move yourself and your business in that direction.

The choice is yours.

I say go for it.

The strategy and steps you gotta take still apply.

Plus, it’s somewhat of a universal subject related to referral marketing: There’s always gonna be cyclical times in business.

But how do you turn the current drag you’re seeing into a lot of new introductions for yourself?

Is it possible to even take the downturn and leverage it into new referrals??

Yes. And it’s easier than you think… with some slight focus.

Click the player to hear a 2 minute referral audio lesson I recorded -
“How to Get Referrals Even When Business Is Slow!”

Or check me out here:

http://www.maximumreferrals.com/6fm-audio

100% valuable content, no B.S. or fluff.

Warning: It does take some effort and focus like anything in life. There’s no magic “system.”

Anyone who tells you differently is yanking your chain.