Before you ever buy a referral marketing system or program make sure it has these key components.
First, you must understand the psychology of referral marketing. Most people just want to send out a referral campaign once or twice, and not put any time, effort, or work into it. This rarely works.
Getting referrals via referral marketing is just not that easy. It takes time, work, and energy. I’ve known people before who sent out a referral marketing campaign for two weeks and then were upset that they didn’t get any referrals. Getting business referrals just does not work like that.
Second, you must make sure that your referral marketing system gives ample rewards to people. You must understand that not everyone is money-motivated. Some people don’t want money as an incentive for referrals. Understanding the different personalities at stake is extremely important. If you don’t understand the personalities you can end up hurting people or costing yourself referrals.
Third, does your referral marketing use contests? Referral contests can work for someone people. Sure, not everyone will respond to a referral marketing contest, but every little bit helps. Different people in business, and in life, are motivated by different things. Your referral marketing plan needs to understand this.
Now that we have covered three essential things you must have in your referral marketing lets cover some common mistakes that people make in their referral marketing.
Mistake #1: Does your message match your target market. In other words, if you are trying to generate referrals you need to use referral marketing that is appropriate for what you are selling. If you are a BMW car salesman trying to get referrals shouldn’t you send good referral gifts, and offer good incentives? I see many people trying to be too cheap.
Mistake #2: Using the wrong media. Sometimes people want to make a referral system so automatic that they don’t do any work. Can this work? Yes, but sometimes a referral system will involve you picking up the phone and actually calling people to ask them for referrals, or who they might know.
Mistake #3: Not farming referral leads. Just because someone is not interested in your services via a referral immediately does not mean that this person is not a serious potential prospect for you. You need to build a hopper system to nurture your referrals.
Mistake #4: Not making deposits in your clientele and referral partners. Thank you, small gifts, and incentives go a long way. I can’t tell you how many times I’ve sent someone just a simple thank you card and this leads to more referrals. I also can’t tell you how many times I have never received a thank you card, or a phone call. Now, I personally don’t care, but I like to be thanked for giving people money…funny how that works, isn’t it?
In conclusion, if you want to get referrals via referral marketing you need to be patient, use a system, understand these key concepts, and avoid making these referral mistakes. Start getting massive referrals today!