Referrals are an excellent way to grow your business and generate a lead flow. However, when you have a very specific ideal client in mind they are not always helpful. By creating a referral network, you can gain more control over the process. There are different types of referral networks you can create, so let’s take a closer look at how to build the right network and make it work for your business.
What is a Referral Network?
A referral network is a group of individuals or organisations that provide referrals for one another. Within certain industries, there are official referral networks that exist, but there are also more informal ones around, too.
An example of an informal referral network might be a loose group of professionals within your niche who share business cards and contact details, and regularly refer clients to one another. There’s nothing in writing, but it’s a de facto “you scratch my back, I’ll scratch yours” kind of arrangement.
Tip #1 – Connect with Larger Businesses
When you run a small business, it may seem counterintuitive to create a referral relationship with your larger competitors but it can, in some instances, be beneficial. For example, if a business only works on large projects, it’s better for their reputation if they refer smaller clients to an appropriate provider rather than flat-out refusing them.
Connecting with these companies means that they can send these leads your way. Equally, if you have a client whose requirements are too large for you to handle right now, then you can return the favour and thus strengthen the relationship.
#Tip 2 – Network
It almost goes without saying that in order to build a referral network, you first have to expand your general network.
This means attending conferences, events and trade shows. Get up on stage if possible – that way, people will be keen to talk to you and even seek you out. The more visible you can be, the better.
Online networking is another great way to build your referral network. Reach out to business contacts, past clients and other professionals within your industry. Swap contact details and even mention that you will send any suitable future leads their way, as they’re more likely to keep you in mind to do the same.
#Tip 3 – Content Marketing
Content marketing is great for a number of reasons. It allows prospective clients to find you more easily and it enables you to build trust and relationships with your audience. What you may not realise, however, is just how useful content marketing can be when it comes to your referral network.
When you are showing up every day delivering value, it’s not only your prospects who will notice. Other business owners are likely admiring you too, even if they’re doing it quietly. If they see you as an expert within your niche, they may well send leads your way if one of their clients or customers has a need that falls outside of their remit.
#Tip 4 – Offer Rewards
Finally, you can incentivise your customers and clients to refer you by offering a reward in exchange. This could be a discount the next time that they buy from or work with you, rewards points or a free gift; it all depends on your specific business type.
A referral reward scheme is also a great low-risk strategy to boost sales because you don’t need to pay out until after you’ve made a sale.
Conclusion
There are several ways to grow your referral network whilst continuing to attract the right kinds of leads. Referrals are a low-cost way of acquiring new clients and so don’t overlook this strategy and its power to boost your business.
