People Want Referrals

People Want Referrals
People don't want to go to the telephone book to pick a lawyer. People don't want to pick a real-estate agent from the Yellow Pages--or an accountant, or a chiropractor, or an insurance agent, or a dentist, or a mechanic. People want referrals! Historically, the only problem has been linking the people who need services or products with the people who provide them. A structured word-of-mouth campaign begins by acknowledging that there's a segment of the public that wants you and your service as badly as you want their business.

People from all walks of life want referrals--not just the business community, but the general public as well. Few people want to choose a dentist, for example, from a printed advertisement. People want to have more personal information before making such selections because whenever you choose a professional exclusively from an advertisement and have no other source of information, you may be taking a big risk as to the quality of service you will receive. With referrals, the risk is greatly reduced. Someone else has done business with that person and is recommending that professional to you with confidence.

As Dr Ivan Misner says, “Networking empowers the individual, and people in networks tend to nurture one another.”

Referrals Are Good Business
Compare a lead that you receive from an advertisement with a similar lead (that is, referral) that you get from someone you know. The referred lead is easier to close and costs less to obtain. Often, the referral provides a higher-quality client or customer with less chance of misunderstanding or disappointment. When I ask audiences why referral business is better than the business they get from ads, they say the referred business:

· is easier to close,

· has far fewer objections,

· has a stronger sense of loyalty,

· remains a client longer, and most important of all,

· has a higher sense of trust.

Relying on the advice of a mutual friend or acquaintance, the referral starts with a higher level of trust for you and your product or service. Getting dozens of people to send such referrals your way every day is what building successful word-of-mouth business is all about.

What would your business look like if.....

.....you NEVER had to guess where your next referral was coming from?

.....you had a community of people to support and mastermind your referral business?

.....you had 4-6 highly trained referral partners working for you?

.....your target market was actually seeking you out?

.....you knew how to refer to others the way they wanted to be referred to?

.....you had a way to keep your referral pipeline full?

.....you were working a whole lot smarter and a lot less hard?

"What we think determines what happens to us, so if we want to change our lives, we need to stretch our minds." --Wayne Dyer

Stretch you mind around word-of-mouth marketing and your business will explode.

By Patrick Carney

The Number One Way to Promote Your Business

Okay, it’s reality-check time.

How many ways are there for you to increase your business? Is it dozens? Or is it hundreds? Okay, maybe it’s thousands?

Guess again. Try four. That's right, there are only four main strategies you can incorporate to increase your business. Don't believe me? Let’s take a look.

First, you can advertise. Competition for customers in our society is extremely fierce. Your competitors are trying to win over the same clients or customers that you are. Even in a good economy, advertising doesn't guarantee success over your competitors. The people you're trying to reach, by some estimates, are bombarded by nearly 2,000 advertising messages per day. This constant inundation means your prospects potentially have many alternative sources of supply for the products or services that your company provides.

The second way to increase your business is through a public relations campaign. This can be very expensive and time-consuming for a small business. Therefore, if your company is too small to hire a PR firm, you need to create your own personalized PR program.

The third way to increase your business is through word of mouth. Word of mouth has long been recognized as the most cost-effective form of marketing a business can use. Tom Peters, author of the book Thriving on Chaos, regards word of mouth as one of the major ways a business can bring in new clients or customers. Peters asserts that one has to be "just as organized, thoughtful and systematic about 'word-of-mouth' advertising" as with other forms of advertising and marketing. Yet, "you never see a 'word-of-mouth communications' section in marketing plans," he says. I, too, believe that if you don't have a well-structured plan, you're not likely to have impressive results. Many business professionals make the mistake of thinking that developing good word of mouth is about providing "good customer service."

There's one other marketing strategy that a lot of people use as an alternative to advertising and PR, and that is, yes, that's right, the "C word"--cold-calling! Cold-calling--just mentioning it makes me shiver. Given the other options, who in his right mind would want to spend the rest of his professional life cold-calling?

Well, there it is, your marketing reality check. Given only these four strategies for increasing your business, I'd have to recommend advertising. However, most businesses have a limited budget to spend on advertising. PR is best used in conjunction with other marketing efforts. And I don't know about you, but many years ago my co-author Dr Ivan Misner promised himself that “he would never do a cold call ever again for as long as he lived!” I tried cold calling for 43 minutes once and I made the same promise.

By Patrick Carney

Networking and Your Business Card

Your business card is one of the most valuable networking tools you have in your quest for increased referrals. Can you envision a reality where 20 to 30 people in your word-of-mouth marketing circle carry your cards and have them ready to hand to prospects they're actually qualifying for you? I certainly can, and am excited every time I hear someone say, "Let me give you my friend's business card; oh, and by the way, may I have him (or her) give you a call?"

The business card is the most powerful single business tool--dollar for dollar--you can invest in. It's compact, energy-efficient, low-cost, low-tech, and keeps working for you hours, weeks and even years after it leaves your hands! Never run out of business cards or be without business cards even while on vacation.

Business cards are a personal reflection of you and your business. Make sure they are never wrinkled, notes scribbled on the back or with lines crossed out such as phone numbers or email addresses.

Some of the things your business card does is:

· Tell people your name and the name of your business

· Provide prospects with a way to contact you

· Give others a taste of your work, style and personality

· It can be so unusual or attractive or strange or charming or funny that it sticks in the memory like a great radio or television ad

· It can be reused, as it passes from person to person, giving the same message to each person who comes in contact with it

The two main functions of your card are to gain business from the person you give it to and to get your name out to other people with whom the first person comes in contact with via referrals. With that in mind, let's take a look at the most effective ways to use your business cards.

Make Your Cards Accessible in Every Situation
In short, don't leave home without them! It's a great idea to keep a small box of your cards in your glove box, just in case you find yourself in a situation where you need more than you've carried in your pocket or purse. In addition to my jacket pocket, I tuck them away in my briefcase, wallet and computer bag, just to make sure I never run out.

Keep an eye on your supply. The time to reorder is before you're in danger of running out.

In addition to being sure you have your cards on hand, be sure that your networking partners always have your cards. Check with them regularly to see if they need more, and be ready to provide them with whatever quantity they say they need in order to promote you.

Seek Situations to Exchange Business Cards
There are many opportunities in which you can pass on your card to prospective clients and customers as well as referral sources you wish to develop. Some are obvious; others are not. Whenever you have a one-on-one meeting with someone new or someone you haven't seen for a while, give her your business card. At mixers and social events, be sure you have plenty of cards when you go in. These are good places to extend the reach of your network.

Conventions and trade shows are another great venue for exchanging business cards. The vendors at the trade shows are anxious for you to take their card--don't make that a one-way street. Be sure you give them your card as well.

When you visit a non-competing business that might attract the same people you would like to have as customers, ask if you may leave a supply of cards to be handed out or made available. In most cases, a business that's complementary to your own is always looking for a networking partner. An example would be a sports nutritionist leaving a stack of cards at a martial arts studio. Be creative and consider even bringing your own cardholder to leave out.

International meetings and events can provide an opportunity to give out your business cards. Consider having your card printed double-sided, with English on one side and the language of the host country of the event on the other side.

Contacts at a Distance
Whenever you communicate with someone in writing, send a card if it's appropriate to the occasion. Enclose several cards in every packet of sales material you mail out. Along with your thank-you note to the businessperson whose referral brought you a major contract, include a business card to replace the one she gave away, plus several more.

After any telephone call in which business was discussed, follow up with a letter outlining the main points of your discussion and include one or more of your cards. E-mail is a great way to follow up, but a letter will actually allow you to include your business cards.

Special Tricks of the Trade
When giving out your card, hand-write something on one copy, such as your cell-phone number, a secondary e-mail address, etc. This will give that particular card a greater chance of being held onto. Be sure you give a couple of "clean" cards to that person, as well, and ask your new friend to pass one on to a potential customer.

After you get someone's card and have ended your time with her, make notes on the back of the card to jog your memory about something special that'll help you remember her. Don't do that in front of her, or you run the risk of making the impression that you are "forgetful." If you need to record information immediately during your discussion, such as telephone numbers or other data not on the card, use one of your own cards. You don't want her to think you view her card as scrap paper upon which to take notes.

At a restaurant, leave your card with the tip and write a personal thank-you note on the back or pay the highway toll for the Mercedes behind you, and leave your card for the driver!

The main thing when handing out your card is to keep in mind what an effective tool it can be. Take maximum advantage of its full potential. And never, ever, be caught out without it. And if you need a referral to a great graphic designer and printer, contact me--I have just the card for you!

By Patrick Carney

Networking is Helping Other People as a Way to Build Your Business

Teamwork is the fuel that allows common people to attain massive results. Networking is definitely a team sport. As my co-author Dr Ivan Misner has stated many times: “Networking is helping other people as a way to build your business.” Yes professional networking is all about focusing on the relationship and strategically helping others reach their goals. Together everyone achieves more! Teamwork!

The recipe for top, profit-proven referral marketing begins with a strong Referral Marketing Plan based on Relationships. The Referral Institute’s Certified Networker graduates implement their own WOMBAT plan. They create a plan that contains comprehensive benefits, features, and marketing statements that they share with their referral partners that result in win – win for each.

When the two referral partner programs are combined each business explodes towards their own goals. They each build a powerful offer and articulate the offer as simply as possible as they train their referral partners. With these ingredients, they’re ready to cook up some great referral partnerships and POI presentations.

Last Tuesday we had a great debriefing and the Referrals for Life students had a lot of "wins" to report. The students continuously blow me away with the work they have done since starting the program and the dedication they have towards achieving their goals together as a team. Each and every one are a constant inspiration and motivator for me, as well as a great example of how powerful a small support group that meets weekly for sharing and masterminding can be.

If you don't personally have referral, support, informational networking teams and a mastermind group, I highly suggest you to learn how create each one. Albert Einstein once said: “If you think education is expensive, try the cost of ignorance.” Is it possible that one idea could change your life forever? Specific, focused knowledge on the power of word-of-mouth is a beautiful thing.

By Patrick Carney

Pre-approved Networking

Proactive networking is the systematic planned and prepared process of managing your existing connections and establishing relationships with new people so that all parties can tap into their network to reach personal and professional goals.

Compare a lead that is generated from an advertisement, whether it is a print ad or TV with a referral that is generated from a referral partner or referral source. The referral prospect will set an appointment because there is built in credibility and is always easier to close. And since it is a referral there is no costs involved to obtain the referral. In my opinion the referral partner provides you with a higher-quality prospect because their reputation is on the line. Typically there are fewer objections and comes with a high sense of trust and clarity

.

When you know how to build a network around you, the network will get you to your perfect client more often. They will get what you want more quickly, with less effort and you will come pre-approved. What do you think will happen if you master this strategy?

By Patrick Carney

Recognizing the People Who Send You Referrals

If there's one thing I've learned in over twenty years of networking, it's that everyone loves referrals--and everyone loves to be recognized for giving referrals. Clients that you’ve received by Referral are easier to close, have fewer complaints, are more loyal, remain clients longer and are more trusting.

In an international survey that my co-author Dr Ivan Misner conducted with Robert Davis published in their book Business by Referral, nearly a quarter of all the respondents considered incentives an effective generator of referrals. Incentives can range from simple recognition, such as a thank-you, to monetary rewards based on business generated.

It goes without saying, then, that building an incentive program is important in any successful business. So how do you do this?

I've heard of many novel ways that businesspeople reward those who send them referrals. A female consultant sends bouquets of flowers to men. A music store owner sends concert tickets. A financial planner sends change purses and money clips.

One realtor that Dr Misner met in Northern California told him that for almost six years, he had offered a $100 finders' fee to anyone giving him a referral that led to a listing or a sale. He said that in all that time, he had given only about a dozen finder's fees, so he decided to try another kind of incentive.

Living on a large parcel of land in prime wine country, he had begun growing grapes in his own vineyard. A thought occurred to him: Why not take the next step? He began processing the grapes and bottling his own vintage wine. After the first harvest, he had a graphic artist design a beautiful label, which he affixed to each bottle. He told all his friends that he did not sell this wine; he gave it as a gift to anyone providing him with a bona fide referral.

He gave away dozens of cases in the first three years--half the time it took him to give only one dozen cash finder's fees. Yet each bottle cost him less than $10 to produce. This special vintage wine makes him infinitely more money than giving away a handful of $100 finder's fees.

It sometimes amazes me, even now, how something as simple as a bottle of wine can be such a powerful incentive for people to give you referrals. But the explanation is quite simple: because it's special. When given as a thank-you, a bottle of wine that can't be bought can be worth 10 times what it cost to produce.

Finding the right incentive can be a big challenge for individuals who are trying to build their referral business. To make it easier on yourself, be sure to get opinions and feedback from others who have a significant interest in your success.

Most important, never underestimate the value of recognizing the people who send you business. A well-thought-out incentive program will add much to your word-of-mouth efforts.

By Patrick Carney

Successful Business Owners Learn from the Past

In the early nineties my co-author Dr Ivan Misner was asked this question: “When the economy is slow, new business is harder to get. What can I do to build my business in a recessionary economy?”

It's been about 20 years since our last recession in the United States. For the most part, the U.S.

economy has been strong, and business has been good for the past decade. However, the fact is that the economy goes through cycles, and business has slowed down for many people. Unfortunately, every time it takes a downturn, the fallout is felt strongly by salespeople, business owners and professionals alike.

Successful business owners learn from the past. For many of us, this will not be our first recession. So, what did we learn from previous economic downturns? In the early '90s, right in the middle of a nasty recession, Dr Misner was at a business mixer in Connecticut where he was meeting many local business professionals. It seemed that everyone was feeling the crunch from the slow economy. Throughout the entire event, the favorite topic of discussion was how bad the economy was and how things were getting worse. The whole affair was depressing, because nearly everyone was obsessed with the problems of the economy and its impact on their businesses.

Dr Misner was introduced to one of the many real estate agents in attendance. Given the decrease in property values in the state, he was leery of asking this gentleman the standard "How's business?" question. He didn't want to hear yet another variation of how bad business was. He shared with Dr Misner, though, that he was having a great year. Naturally, Dr Misner was surprised and asked, "You did say you were in real estate, didn't you?"

"Yes," he said.

Dr Misner asked, "We are in Connecticut, aren't we?"

"Yes," he said with a slight grin.

"And you're having a good year?" Dr Minser asked.

"I'm actually having my best year ever!" he said.

"Your best year, ever!" Dr Misner said in amazement. After thinking for a moment, he asked him, "Is this your first year in real estate?"

"No," he replied with a laugh, "I've been in real estate for almost 10 years."

Dr Misner asked him how he could be doing so well, given the conditions of the economy and the stiff competition. He reached into his pocket and pulled out a blue-and-white badge that read: "I Absolutely Refuse to Participate in the Recession!"

"That's your secret?" Dr Misner asked. "You refuse to participate in the recession, so business is booming?"

"That's correct," he said. "While most of my competitors are crying the blues about how bad business is, I'm out drumming up a ton of business networking with my contacts and generating referrals by talking about the great opportunity that exists right now to purchase real estate."

Considering what he said, Dr Misner looked around the room and listened in on people for awhile as they complained about how bad business was. While nearly all were commiserating with one another, he concluded that very few were actually networking and working on seeking new business. As a result, very little business was actually being accomplished.

If you want to do well in business, you must understand that it does absolutely no good to complain to people about tough things are. When you complain about how bad business is, half the people you tell don't care, and the other half are glad that you're worse off than they are!

While you cannot control the economy or your competition, you can control your response to the economy. Referrals can keep your business alive and well during an economic downturn.

During the last recession, Dr Misner watched thousands of business owners grow and prosper. They were successful because they consciously made the decision to refuse to participate in the recession. They did so by developing their networking skills and learning how to build their business through word-of-mouth. You can do the same during a slow economy by:

1. Diversifying your networks. You need breadth and depth. Participate in different kinds of groups.

2. Refusing to be a "cave-dweller." Be visible. Get out there and meet people at business events.

3. Learning how to work the meetings you attend. It's not called "net-sit" or "net-eat," it's called "network." Learn networking systems and techniques that apply to the different kinds of organizations you attend.

4. Being prepared. Prepare effective introductions and presentations to give to other business professionals at networking events and meetings.

5. Developing your contact spheres. These are a groups of business professionals who have a symbiotic or compatible, noncompetitive relationship with you.

6. Knowing your goal. Perhaps most important, understand that networking is more about farming than it is about hunting. It's about building relationships with other businesspeople.

Don't let the threat of a bad economy be your excuse for failure. Instead, make it your opportunity to succeed. It's not what you know or who you know, it's how well you know people that counts. In a tough economy, it's your social capital that has value. Make good use of it, and you'll thrive while others struggle.

By Patrick Carney

Contact Spheres - A Great Way to Build Your Business

When my NY Times best selling co-author Dr Ivan Misner wrote his book The World's Best Known Marketing Secret: Building Your Business With Word-of-Mouth Marketing he defined a contact sphere as a group of business professionals who have a symbiotic relationship. They are in compatible, noncompetitive professions, such as a lawyer, a CPA, a financial planner and a banker. If you put those four people in a room for an hour, they're going to do business together. Each one is working with clients that have similar needs but require different services. Hence, they're working that symbiotic relationship.

Dr Misner’s favorite example of a contact sphere is the caterer, the florist, the photographer and the travel agent. He calls this the "wedding mafia"! If one gets a referral to a wedding, then they all get a referral to the wedding. These professions, more than most, have truly learned how to work their contact sphere.

Here are some other examples of contact spheres:

· Business services: printers, graphic artists, specialty advertising agents and marketing consultants.

· Real estate services: residential and commercial agents, escrow companies, title companies and mortgage brokers.

· Contractors: painters, carpenters, plumbers, landscapers, electricians and interior designers.

· Health care: chiropractors, physical therapists, acupuncturists and nutritionists.

Let's take a computer sales and service company as an example. That contact sphere may include sales reps for telecommunications hardware firms and photocopier companies. Also, contractors who specialize in installing wiring may fit within this contact sphere to assist in wiring installations. Also, don't forget the computer trainers, who work with people and their computers on a daily basis, as well as business coaches and accountants, who may have clients that need to improve their company's technology.

To get the most out of your contact sphere:

· Identify as many professions as possible that fit within your company's contact sphere. Take a look at what professions your industry tends to work with to get an idea of repetitive and reciprocal referrals. Create a list of these professions.

· Identify specific individuals who could fit into your contact sphere. Go to various networking groups and consult your business card file and database.

· Invite these people to participate in networking groups with you so you can formalize your relationship and have a way to stay in regular contact. Maintaining the relationship is key. A good way to do that is to participate in groups that put you together on a regular basis.

· Evaluate the professionals in your contact sphere that you are presently referring. If they are not reciprocating, you may have the wrong profession or the wrong person. Fill the spot with someone who is willing to reciprocate.

Although developing a solid contact sphere will greatly increase your business, you must remember that it alone is not enough. Because contact spheres consist of small groups, you're not likely to gain exposure to a large number of individuals. Hence, work on developing your overall network of contacts at the same time you are developing your contact sphere. Contact spheres are a great way to start building your professional network.

By Patrick Carney