What exactly is a referral system?
If you ask 10 different people what a referral system is, you will get 10 different answers. Everyone has a different idea of what a referral system is. The Internet has dozens of “resources” on referral systems, lets truly define what a referral system is.
A referral system is made up of two parts. A system that is designed to get you referrals via marketing. And a system is something that can be duplicated , and is not dependent on a single person.
This site, GetMassiveReferrals.com has tons of information on what makes up referral systems, but what I want to cover today is what makes up a system. Lots of people think they know what a referral system is, and what a referral system is supposed to include.
First, a referral system is documented. If it is just in your mind, then that is not really a system, it is more of an idea. Now there is nothing wrong with an idea, but a referral system is documented then you can have other people run the referral system.
Second, the referral system can be run by someone other than yourself. Why is this important? Because if the referral system is run by someone else, this frees you up to focus on other things and run your business . If you have to spend all the time in the world running the referral system, then you won’t have the time to spend doing the other things.
Third, a referral system has a feedback loop in it. What is a feedback loop? A feedback loop is a part of the system that pauses and asks itself what can be improved? What needs to be changed. If the referral system never tries to improve, it can become out-dated and quit working.
Fourth. a referral system generally, but not always, utilizes multiple forms of media. Why? Because people react to different forms of media differently. Some people will never respond to your referral system via email, some will never respond to it via direct mail. The more forms of media you utilize in your referral systems, the more chances of success you have.
Fifth, the referral system must be accountable to the numbers. The referral system should be “trackable”. If you cannot tell where and what the referral system is doing in your business, then you do not have a system. For example, lets say you spend $4,000 on your referral marketing system for the year. If you can’t break that down by category, by area, and if don’t know how much money has come in as a result of this referral system, then you do not have a true referral system.
Six, a good referral system will always diversify itself. It will not rely on one form of media or one thing that works. I see many people find a referral system that works, and then they don’t try to figure out anything else. This is dangerous because if this method in the referral system quits working or becomes illegal or the technology quit working, then your referral system will stop.
A good referral system will have at least 4 of these components. A great referral system will incorporate all six of these components. If you are ready to start building referral systems click here: Get Referrals