To answer this question, we need to look at another question: Many marketers debate whether people prefer to be educated or ’sold.’ I’ve never liked that comment, frankly.

They argue that if a prospect needs to learn more about the product or service, they reason, then educational materials should be made available. But what about when it comes to word of mouth referrals and the notion of asking for referrals?

• Clearly, it is easier to take advantage of expanding the network you already have than adding completely new members.

Your current business is actually a web of relationships with unlimited possibilities to connect with the people your clients know. To reach these important relationships, you need to pursue them.

There is nothing pushy about asking for referrals and it’s a natural part of doing business that people expect. Remember, they don’t know how busy you are and whether you want referrals unless you are actively asking for referrals.

They key to asking for referrals is to make it a habit.

Referrals are one of the most powerful sales tools you have so don’t minimize their relevancy because you feel it’s a “dirty deed” to start asking for referrals.

Next time: How to ‘actually’ ask for the referral.

Do you want to SERIOUSLY grow your business, income and referrals in 2011? Then study this referral marketing photo. I mention it a lot.

Today, people are busier than ever, with more points of communication in our lifetime. Look at what the average business person might come in contact with during their day:

• Google, Yahoo, Bing, Facebook, Android, iPhone, Outlook, Word, Excel, Project, Photoshop, Dreamweaver, Frontpage, Blackberry, Sirius, FM radio, AM radio, DirecTV, Comcast, TimeWarner, etc. etc.

You kiddin’ me?

How in the world do you think YOUR marketing is ever going to influence them to want to SEEK you out, and do business with you? How do you break through?

There are three things I recommend.

Now, I’m not going to harp on old-school conventional marketing and advertising. It serves a need. But for most people like you, the question you’re really asking as you start another year, is:

• How do I cut what I’ve spent on my marketing, and re-use it so more people can be referred to me? After all, referrals are always the best clients for me since they’re already sold and ready to do business.

As we enter a new year, I’d like to suggest the following:

1. Shift your marketing spend dramatically from last year. By dramatically, I mean radically. Don’t flame me. I realize you might have to do it slowly so you don’t take a sales hit. But you need to have a RADICAL epiphany.

Go look at this referral marketing photo again.

For example, let’s say your marketing spend typically looks something like this:

• 80% – traditional marketing (Mailers, Yellow Pages, PPC, etc.)
• 20% – referral based marketing

I suggest you turn that upside down (like the photo shows you) and MOVE to this spend-based equation:

• 80% – referral based marketing
• 20% – traditional marketing

Ask: What would my income and client roster look like, if I was spending 80% of my marketing dollars on referral-generating activities.

2. If you’re not spending ANY money on referral marketing, you’re wasting a ton of your time and money.

And from the above, watch how powerful the 80% break down would become, if you followed, say this model:

• 40% – spend on current customers and clients
• 40% – spend on referral sources (COI – centers of influence, SA – Strategic Alliances)

Could you imagine spending 1/3 of all marketing dollars you have, on your current clients?

Imagine what impact that would have on their word-of-mouth about you. Imagine what impact that would have on your INCOME!

3. There are tons of ideas that will help you accomplish #2, very easily. I don’t have time to go into a slew of them here, but how about using referral letter drip campaigns, client/customer appreciation events (Birthday parties, Chef’s Tables, Golf Outings, Museum Lunch-n-Learn), or private seminars, just to name a few?

Start thinking new… as you start a new year. Otherwise your income and earnings will be exactly the same as last year.

Fact: Referrals and referral marketing are the fastest, easiest way for you to get to the next level with your business and income, and build an army of loyal clients and customers.

Nothing else comes close.

Period.

If you’re not getting the referrals and personal introductions to others in your business, you have a problem.

You might not realize that you have a problem. Or worse, you may instinctually know something is whacked because your referral faucet isn’t flowing… and… you’re ignoring that.

Or even worse, you’re making excuses: too busy, too much work to do with current clients, et cetera, B.S.

So, here’s the real reason you’re likely not getting more referrals.

You’re not giving people enough REASON to talk about you!

Plain and simple, people naturally get excited by what excites them!   They enjoy running their mouths.

And the single biggest mistake that destroys your chances for steady business referrals is not giving other people enough reasons to talk about you.

Because, remember:  people can only talk about you once they’ve had an experience with you.

Ask yourself: How can I package my work in a cost-effective, highly-valuable way, that other people can experience what I do? 

•    Can I donate my services?
•    Can I do some pro-bono work?
•    Can I provide a valuable ‘extra’ service to existing clients?
•    Can I offer them something free for a limited time

Again, you’re not giving people enough REASON to talk about you.

Experience with you = referrals and introductions.

Business cards are universal. They’re a way to give details to others about ourselves, and to a lesser extent, our services. So should you use them to prospect for referrals, and generate word-of-mouth and more client referrals?

The short answer is yes. Your business card should give accurate information about your location and services in an eye-catching format, as well as state that you welcome referrals.

Your business card has limited space so every word matters. Considering that you want people to know what you do, where you are, and that you are ready to offer your services to potential clients, what’s the best way to add your referral message?

Use the A-S-I format

• Add a line that you welcome referrals makes clients feel free to spread the word about your services.
• State that you welcome referrals will also make potential clients who have not spoken to you yet feel more comfortable to contact you the first time.
• Include this simple statement on your business card lets people know you are approachable, and you want introductions.

Keep a stack in your reception room, office, car and wallet. After all, when you ask for someone’s business card and they are unable to offer it, don’t you speculate whether they are serious about wanting to do business?

I remember a business colleague once telling me, “I don’t carry business cards. I tell people I forgot mine, let me have one of yours and I’ll send you mine.”

Rather clever. But I never liked that underhanded remark.

Getting clear with “who” you want as new client referrals is paramount today.

The problem, however, is that most professionals are not totally clear on “who” it is they truly want to work with, and the type of referrals they want.

The crazy part of this is that if you’re not 100% clear — how can you ever expect your referral sources to be either? How are they going to know who is an ideal client for you!

You have to start by identifying who you want to be referred to. In other words, the types of people you desire as referrals.

What type of people do you want as new client referrals? That’s why I’m a big proponent of developing your own written, ICP — “Ideal Client Profile.” In fact, an ICP one of the most important pieces of marketing collateral you can ever have!

……………………..

Recapping:

1. Time to get crystal clear on who you want to be referred to, in terms of new client referrals.
2. Write down what these people look like, including demo/info on them on a 1-page doc:
   1. Age
   2. Locale
   3. Income/net worth
   4. Professions
   5. etc.
3. Publish this in the form of an ICP you keep in your marketing materials; Post to your website.

Action Step 1: Get clear (or clearer!) on who you want to be referred to!

Action Step 2: Create your ICP

Action Step 3: Share it with others as opportunities warrant themselves.

What does G.L.U.E. have to do with getting more referrals from clients and introductions.

Click below to hear this short audio lesson today, as I explain my referral acronym…

G.L.U.E.®

This advice will help you understand the process of generating more qualified, affluent referrals and introductions.