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.

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.

You can absolutely jumpstart your referrals and referral marketing efforts now. In fact, it’s one of the questions I’m getting asked the most, right now.

There’s a 3-step referral marketing approach I want to suggest that you try using. When you do, it’s very powerful in opening up new doors and conversations about introductions and referrals with others.

Let’s start with the three steps.

You could begin with clients, customers, or perhaps a business colleague, for example.

My 3-Steps are as follows – A-L-D:

• Step 1: Ask For Feedback on Yourself.
• Step 2: Listen for Value Statements & Confirm Value-Found.
• Step 3: Discuss/Reframe So Others Can Benefit.

When formally creating your own referral system, notice how step 2 and 3 follow the preceeding step. Study this closely you’ll see it’s a natural progression of conversation.

I suggest you familiarize yourself with this referral marketing approach, especially now, when so many people seem to be looking to others for advice and direction.

Let’s start with Step # 1: Ask For Feedback on Yourself.

(Quick sidebar, click image to hear me explain something related:)

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It truly amazes me how many opportunities we have to ask others for feedback on our skillset in day to day business. But we fail to do it — at least consistently. One way of getting feedback on ourselves is simply to ask the other person (client, customer, colleague):

“John, On a scale of 1 to 10, what score would you give me these past few months? How do I rate? How do you rate my level of advice and service to you?”

Then shut up and listen!

What you will hear will give you crystal clear insight and feedback on yourself. It may also rattle your perception of your product or service-delivered also!

The best way of doing this is conversationally, of course — either in person, or by telephone. Don’t relegate the important grading of yourself and the services you provide to a mailer, or a survey, or an online form people complete (although they can be useful at times.)

You want genuine, honest feedback from people who can refer you currently… or who can be a future referral source to your business.

And you want them to speak this to you… using their MOUTH. No emails. No handwriting.

Sure, it takes cajones to ask that question; but it’s absolutely essential you do it before you ever think about asking the client, customer or collague to help introduce you to other people.

Go get feedback on yourself. And ask for it frequently!

Next time: Step 2: Listen for Value Statements & Confirm Value-Found.

It amazes me how most people use referral marketing and building referrals from their clients by offering them a (forced) incentive to get them to take action and refer business.

I suppose “forced,” is not really a good word because you can’t force someone to do something they don’t want to do, including sending you referrals.

And herein lies the problem: Referral fees inherently have two flawed notions when it comes to referral marketing:

People presume when they offer a referral fee, that:

1.       People actually like to give you client referrals;
2.       People will provide you those referrals conistently when you offer them a cash reward (or other incentive).
 
Both are dangerous referral myths.

Why?
 
First of all, I’ve rarely met anyone — client, colleague, or family member — who truly enjoys giving referrals to someone. Let alone, that person actually responding favorably and frequently when you go asking for referrals from them (however you do currently now, in your own biz).
 
It just doesn’t happen. At least not consistently.
 
So what happens?

Most people seeking referrals try to up the ante: They pile on $25, or $50, or $100 or $1,000 or whatever… if you send to them X-amount of referrals or referred business. They reason to themselves that if I offer a high enough bounty, others will get interested and that will create more referral flow for myself.

False.

I’ll explain why next time in Part 2.

Ran across Ivan Misner’s comments on lack of referrals, and who’s to blame (Answer: You!).

Doesn’t matter, either, what types of client referrals you want: from exisiting clients, strategic alliances, or anyone else. Here’s why you need to understand this concept when it comes to your referral marketing.

The article goes on to say that our job (referral seekers) is to encourage and foster relationships with others so that referrals and introductions blossom from that. Seems obvious, sure. But there’s something more at play with referral marketing.

“Not Getting The Referrals You Want – Then It’s Your Fault”

It comes down to us taking responsiblity for our network he rightfully says, and working towards cultivating it.

No more finger pointing when it comes to your referral efforts.

It takes work. But there’s no greater payoff of your time.