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Thursday, July 31, 2008

Referral Marketing - The Most Powerful Form of Advertising

Practice these referral marketing techniques and your business will explode with new customers
By John Jantsch

Business owners tell me everyday that the way they generate the most new business is through referral marketing. Yet they don't seem to grasp the power of this statement. Few if any businesses harness the true power of referrals by making the receiving of systematic referrals a cornerstone of their marketing efforts.

First let me tell you why you need to do this.

1. Referrals are credible right from the start. When a trusted friend tells you about a business you transfer that trust to this company...even if you've never heard of them before.

2. People who are referred to a business tend to spend more money. Research has proven this beyond the shadow of a doubt and it is likely because people tend to refer other who are highly qualified and not just tire kickers or price shoppers.

3. Referrals are very cost-effective. In some cases free or a fraction of what you might pay in advertising costs.

In some industries, like consulting and professional services most companies are chosen solely on the recommendation of a friend.

Are you getting your referrals...if not consider these little ideas.

1. Expect to get referrals but don't assume you will. Talk about them early and often and build them into your sales and marketing efforts...don't wait for people to offer them.

2. Create a system. It can be as simple as advertising $20 for every referral.

3. Follow-up by phone or mail asking for referrals

4. Give every client 3 business cards. Look in your drawer you've got hundreds. Give them out to clients and they may just pass them along.

Referrals are essential to your business so don't overlook them chasing the newest trend in marketing in your industry.


John Jantsch is the owner of Jantsch Communications, a marketing consulting firm located in Kansas City, Mo. He is the creator of Duct Tape Marketing, a fully-customizable turn-key marketing system. You can reach him at 816-561-3931 or

2 comments: said...

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If yes, please leave your blog url as a comment at:
I'll link to you first, then when you have time link back k?
Thanks, Michael
BTW--I'm michaelwong38 on digg. If ever you want something dugg, just send me a shout anytime.

Bay Area Mompreneur said...

Thanks Michael, for the offer... I'll check out your blog! =)