During a recession everyone is looking for ways to cut their expenses.
It makes sense because cash flow is tight and sales are low.
That is if you don't have a referral system in place that consistently produces high quality referred prospects for your business.
I don't have to convince you of the value of a good referral yet that value is probably greater than even you realize.
Plus the value referrals bring to you and your business is exactly what can keep you viable when those around you fail.
High quality referrals really are a BIG deal.
Reason #1 - It costs you less to acquire a new client when that new client comes to you through a referral.
I challenge you, if you aren't already, to begin tracking what it actually costs you to acquire a new client.
Track the cost of attracting a complete stranger separately from a referral.
It won't take you long to realize a good referral is a lot more cost effective than a cold call.
In addition, the more new clients you gain from referrals the more money you have to invest to market yourself.
The more money you have to invest to acquire a new client the easier it is to dominate a market and grow exponentially.
Reason #2 - The clients you gain through referrals tend to have a greater net client value than those you have to go out and round up.
What I mean by net client value is the net income that client produces for you plus the expected lifetime of that client relationship.
Referred clients tend to purchase more profitable products from the onset and they tend to stay with you longer.
Combine those two benefits and the net client value of referred clients is perhaps double that of non-referred clients.
Reason #3 - Have you ever noticed that the price shoppers are among the worst clients you have in your book of business? They tend to complain a lot and they leave you at the drop of a hat.
They take up a lot of your valuable time and resources.
In contrast, referred clients rarely complain and they're far more loyal.
Thus you can easily take care of far more clients at a greater profit with less work when those clients are referred.
Reason #4 - It can take 18 months to transform a complete stranger from a prospect to a client.
That's 18 months of call backs, scheduled and rescheduled appointments, and follow-up communications...
aka a lot of time, energy, and expense.
However, referred potential clients often convert in a single appointment and only require one or more additional appointments to finalize the deal they've already agreed to.
Referred prospects are easy on both the expense account and the ego.
Reason #5 - The most important reason referrals make you recession proof is the fact they provide a consistent low cost way to grow your business.
High quality referrals mean you can sell more and sell more often than the competition.
More importantly you're already positioned as a trusted expert with those referrals so it is a matter of if you'll do business together it's a matter of when you'll do business together.
Okay, so referrals are the only way to go.
Yet some of you only have a tiny client base right now and you hate asking or begging for referrals.
Well, there's an easy way around those problems.
You'll get the answer to those challenges when you discover how to sell without rejection.
It makes sense because cash flow is tight and sales are low.
That is if you don't have a referral system in place that consistently produces high quality referred prospects for your business.
I don't have to convince you of the value of a good referral yet that value is probably greater than even you realize.
Plus the value referrals bring to you and your business is exactly what can keep you viable when those around you fail.
High quality referrals really are a BIG deal.
Reason #1 - It costs you less to acquire a new client when that new client comes to you through a referral.
I challenge you, if you aren't already, to begin tracking what it actually costs you to acquire a new client.
Track the cost of attracting a complete stranger separately from a referral.
It won't take you long to realize a good referral is a lot more cost effective than a cold call.
In addition, the more new clients you gain from referrals the more money you have to invest to market yourself.
The more money you have to invest to acquire a new client the easier it is to dominate a market and grow exponentially.
Reason #2 - The clients you gain through referrals tend to have a greater net client value than those you have to go out and round up.
What I mean by net client value is the net income that client produces for you plus the expected lifetime of that client relationship.
Referred clients tend to purchase more profitable products from the onset and they tend to stay with you longer.
Combine those two benefits and the net client value of referred clients is perhaps double that of non-referred clients.
Reason #3 - Have you ever noticed that the price shoppers are among the worst clients you have in your book of business? They tend to complain a lot and they leave you at the drop of a hat.
They take up a lot of your valuable time and resources.
In contrast, referred clients rarely complain and they're far more loyal.
Thus you can easily take care of far more clients at a greater profit with less work when those clients are referred.
Reason #4 - It can take 18 months to transform a complete stranger from a prospect to a client.
That's 18 months of call backs, scheduled and rescheduled appointments, and follow-up communications...
aka a lot of time, energy, and expense.
However, referred potential clients often convert in a single appointment and only require one or more additional appointments to finalize the deal they've already agreed to.
Referred prospects are easy on both the expense account and the ego.
Reason #5 - The most important reason referrals make you recession proof is the fact they provide a consistent low cost way to grow your business.
High quality referrals mean you can sell more and sell more often than the competition.
More importantly you're already positioned as a trusted expert with those referrals so it is a matter of if you'll do business together it's a matter of when you'll do business together.
Okay, so referrals are the only way to go.
Yet some of you only have a tiny client base right now and you hate asking or begging for referrals.
Well, there's an easy way around those problems.
You'll get the answer to those challenges when you discover how to sell without rejection.
