I've been an entrepreneur for quite some time now. Throughout my experiences of working with startups, scaling businesses, and other entrepreneurs, I can't help but notice the poor way that some people choose to handle referrals.
How I handle accepting referrals
In my opinion, receiving a referral is the greatest compliment that you could ever pay me. That's why I choose to handle any referral that comes my way very delicately. If one of my clients chooses to send me a referral, it's because he or she trusts that I will do an exceptional job for the prospective client.
How I handle accepting referrals
In my opinion, receiving a referral is the greatest compliment that you could ever pay me. That's why I choose to handle any referral that comes my way very delicately. If one of my clients chooses to send me a referral, it's because he or she trusts that I will do an exceptional job for the prospective client.
Because I want to earn the referred business and encourage future referrals, I always follow through with what I say I'll do. This philosophy applies during the sales process and beyond. By taking this approach, I've been able to successfully build a loyal base of clients that also serve as a valuable resource for referrals. This has also empowered me to be able to choose who I want to work with rather than take any client that comes my way.
Unlike a number of digital marketing agencies, New York Ave does not pay for referrals. Instead, we want our clients and business colleagues to send us referrals for the same reasons that we send referrals to them--because they love working with us, trust us, and know our capability to deliver excellent work.
To emphasize the power that a true referral can have on your business, 92 percent of people rely on recommendations from family and friends to make a purchase decision. Therefore, if you're lucky enough to be on the receiving end of one of these legitimate referrals, there's a very good chance that you'll earn the new business.
Receiving a referral from a former client or business partner that you have worked very close with can be especially important if the product or service that you sell tends to have a larger price tag. As a consumer, I can personally relate that I feel more comfortable making a larger investment when a friend or colleague that I trust gives me a recommendation. This is why it's so important to always put your best foot forward with the way that you run your business, because you never know when a good referral could be coming your way.
How I handle making referrals
So while we've just talked in depth about how I handle the referrals that I receive, it can be just as beneficial for your client relationships to make referrals as well.
There are certainly times that a client will ask me about a service that we don't offer. In these scenarios, I refer my client to the best person to handle the job. We don't take any type of 'cut,' percentage, or commission for these referrals. Instead, we simply feel that it's our duty to the client to make a referral based on the third-party's demonstrated ability to execute well.
All too often, business owners feel compelled to make a referral (even if it isn't to the best person for the job) simply because they had previously been on the receiving end of several referrals from that person. You should never feel pressured to make a referral to someone. It's important to remember that when you refer your client to someone, that vendor is a direct reflection of your business. If that vendor does a mediocre job or drops the ball with your referral, you will immediately lose credibility and hard-earned trust with your client.
As a best practice, treat any vendor that you would send a referral to as a trusted business partner--an extension of your own business. When you establish this type of working relationship, you can feel good knowing that your client will be well taken care of and that your own reputation will stay intact.
As you can see, referrals can be very beneficial to your business, from both the giving and receiving end. When you receive a referral, you have a higher probably of closing the business and earning a new loyal client that will refer you future business. When you give someone a referral, you are demonstrating that you care for that client's well-being and can use that as an opportunity to strengthen your relationship with the client.
The key is to establish your own clear-cut plan for accepting and making referrals. What works well for me may not best plan of action for you. However, making the client's well-being the basis of the way that you give and receive referrals will certainly be a winning strategy.
Do you currently have a plan in place for handling referrals that works well for your business? I'd love to hear from you about what's working and which areas of your strategy could use some improvement. Please feel free to leave your feedback in the comments section below.
Unlike a number of digital marketing agencies, New York Ave does not pay for referrals. Instead, we want our clients and business colleagues to send us referrals for the same reasons that we send referrals to them--because they love working with us, trust us, and know our capability to deliver excellent work.
To emphasize the power that a true referral can have on your business, 92 percent of people rely on recommendations from family and friends to make a purchase decision. Therefore, if you're lucky enough to be on the receiving end of one of these legitimate referrals, there's a very good chance that you'll earn the new business.
Receiving a referral from a former client or business partner that you have worked very close with can be especially important if the product or service that you sell tends to have a larger price tag. As a consumer, I can personally relate that I feel more comfortable making a larger investment when a friend or colleague that I trust gives me a recommendation. This is why it's so important to always put your best foot forward with the way that you run your business, because you never know when a good referral could be coming your way.
How I handle making referrals
So while we've just talked in depth about how I handle the referrals that I receive, it can be just as beneficial for your client relationships to make referrals as well.
There are certainly times that a client will ask me about a service that we don't offer. In these scenarios, I refer my client to the best person to handle the job. We don't take any type of 'cut,' percentage, or commission for these referrals. Instead, we simply feel that it's our duty to the client to make a referral based on the third-party's demonstrated ability to execute well.
All too often, business owners feel compelled to make a referral (even if it isn't to the best person for the job) simply because they had previously been on the receiving end of several referrals from that person. You should never feel pressured to make a referral to someone. It's important to remember that when you refer your client to someone, that vendor is a direct reflection of your business. If that vendor does a mediocre job or drops the ball with your referral, you will immediately lose credibility and hard-earned trust with your client.
As a best practice, treat any vendor that you would send a referral to as a trusted business partner--an extension of your own business. When you establish this type of working relationship, you can feel good knowing that your client will be well taken care of and that your own reputation will stay intact.
As you can see, referrals can be very beneficial to your business, from both the giving and receiving end. When you receive a referral, you have a higher probably of closing the business and earning a new loyal client that will refer you future business. When you give someone a referral, you are demonstrating that you care for that client's well-being and can use that as an opportunity to strengthen your relationship with the client.
The key is to establish your own clear-cut plan for accepting and making referrals. What works well for me may not best plan of action for you. However, making the client's well-being the basis of the way that you give and receive referrals will certainly be a winning strategy.
Do you currently have a plan in place for handling referrals that works well for your business? I'd love to hear from you about what's working and which areas of your strategy could use some improvement. Please feel free to leave your feedback in the comments section below.