Referral Marketing Mistake
Find a Consultant Become a Consultant

The Number One Mistake People Make When It Comes To Referral Marketing

The Number One Mistake People Make When It Comes To Referral Marketing

By John Jantsch

Marketing podcast with Bill Cates

Subscribe now via iTunes

Everyone loves referrals, but let’s face it – the real point of a referral is a customer. If you’re getting plenty of referrals, but few are turning into new clients, it’s time to change a few things about your approach to referrals.

referral introduction

photo credit: Jeremy Wilburn via photopin cc

The number one mistake people make in the business of referral generation is to ask for leads or referrals when they should be asking for introductions.

So many people seek referrals by simply asking clients, or anyone that will listen, if they know anybody who needs what they do. If the referral source can come up with a few names we’re often tickled to have some new “leads” to go chase.

But, what do we really have? Something less than cold call – maybe. Sure, we can name drop, “Bob said I should call you.” But, we’ve all been on the other end of that call and know how that usually ends up.

If you want to make referral generation a significant part of your marketing success you need to start asking for introductions and not simply a list of names. You need to build the trust and leverage that would allow you to ask a client to introduce you to three others that could benefit from the value you bring.

In this week’s episode of The Duct Tape Marketing Podcast I visit with Bill Cates, author of Get More Referrals Now and the upcoming Beyond Referrals. Bill has spent many years coaching financial professionals on the fine art of authentic referral generation and in this segment he shares some well tested tactics.

The key to generating introductions is to make it as easy as possible for your referral source to do so. Offer a list of specific prospects you would like to meet and see if they know anyone on the list. Offer to host an informal educational workshop and allow your best customers to bring a friend or two. Take a handful of customers to lunch and ask them each to bring a guest.

Cates mentions a former client that would ask his clients to introduce him to two colleagues who would take his call just because they asked them to.

Getting your customers or contacts to rise to the level of engagement required to make introductions or bring a friend to lunch requires a level of value that few can muster. This is the key to making this idea work. You must bring value to every interaction, conversation and setting.

When you can do this, people will gladly introduce you to others. When you change the context of a referral to that of an introduction you automatically raise the stakes for all parties and that’s the place where you can do your magic.

Free eBook 
7 Steps to Scale Your Consulting Practice Without Adding Overhead

The Duct Tape Marketing Consultant Network has helped me to grow my business by over 40% in the last 12 months. ~ Michael Quinn - Michael Quinn Agency, Fargo, ND


Podcast
2 Out-Of-The-Box Ways To Generate Referrals
Marketing Podcast with John Jantsch In this episode of the Duct Tape Marketing Podcast, I’m doing the final part of a five-episode solo show series where I’m covering one of my favorite topics: referrals. You can catch the first episode, second episode, third episode, and fourth episode of the Referral Generation series here. Key Takeaway: In this episode, I’m wrapping up […]
Podcast
What It Means To Humanize A Brand (And How To Do It Well)
Marketing Podcast with Jacqueline Lieberman In this episode of the Duct Tape Marketing Podcast, I interview Jacqueline Lieberman. Jacqueline is the former Managing Partner and the Head of Strategy Story Worldwide and the current founder of BrandCrudo. Key Takeaway: Brands are people’s introduction to businesses and their way to interact with companies. The more human […]

Subscribe to the Duct Tape Marketing Podcast

If you know your small business needs marketing, but don’t have the time or resources, look no further. The Duct Tape Marketing podcast covers everything from earning referrals to managing time and being more productive.