Tuesday 5 December 2017

What is Referral Marketing and Why is it Important?

Posted by at 9:00 AM in

I frequently read industry trade magazines online and have even written for most of them. I scan through the titles and when I come across an article on business development, coaching, or sales I earmark it for reading.  I am almost always disappointed at the shallow approach to important matters and the old worn out advice writers frequently give. They fill up space with words but don’t have much to say. Cleanfax published an article “The Secret to Record Sales and Profits” which is an exception to my experience. Howard Partridge writes with sage wisdom and transforming practicality. Here is his secret: “Instead of spending so much time following up with individual prospects or trying to attract strangers in the constantly changing online world, invest your time building relationships with powerful referral sources.” There it is – the secret, and Howard got it right!

So, who are these folks – these referral sources? They are “a company or professional that has a relationship with a large group of your perfect niche clients.” Many restoration contractors immediately think of insurance adjusters and agents – but do they really make many referrals to local restoration contractors any longer? Ten years ago, even 5 years ago they may have made the list – but not anymore.

Adjusters may guide customers to companies that are already on their company’s preferred vendor program, but they have not been known to be free to refer outside of “the program” for a long, long time. Agents have been locked down by District Sales Managers and told to send their policy holders through their system where they believe there is greater customer safety and satisfaction. Don’t count on them to send you work. Plumbers could be a referral source for some contractors that are willing to pay $250 - $750 for each lead. If not them – then who in today’s marketplace has the biggest bucket of claims making them a good target for referral marketing? Who is actively looking for contractors to send work to? Who has a professional sales staff whose sole job it is to get claims so they can distribute the work to others? Who gets paid for making referrals only if you get the job and do the work?

No, I am not referring to Angie’s List, HomeAdvisor, or any internet based lead site … I am referring to Third Party Administrator Networks whose sole job it is to get work and give it to you! There’s your #1 source for referral marketing as you head into 2018. No other source can bring you a greater volume of work more quickly than TPAs. No other revenue generator is more sustainable over time. Nothing could be more transformative to your business than to become a strategic partner with a TPA that produces more, and more, and more work for you.

Reference: 6 Month Coaching Plan – The Revenue Generator – The Ultimate Revenue Booster for Your Business Sales Growth Cleanfax article: http://www.cleanfax.com/marketing-advertising/secret-record-sales-profits-referrals/ Subscribe and receive our weekly blogs in your email inbox at http://growmyrestorationbusiness.com/blog/ - scroll to bottom of the page.