“Transcript of the Video”
Hey guys, what’s up? Zach here. In this video we’re going to be talking about the importance of referrals. So, when you’re just getting started out and you really want to grow your business, the most important thing you could possibly use for marketing in sales is referrals.
So, here’s what I mean when you do a job for somebody even if it’s a free job or a very expensive one. If that person forward your name to somebody else who is important they’re going to trust you a lot more because they already trust that person, right? It’s very common in business referrals equal trust, right? And trust is the name of the game you’re trying to make sales and grow your business.
So, how should you as a business owner pursue and get referrals especially when you’re just starting out?
Whenever you’re pitching your price you can always start a little bit higher than what you expect someone to pay and you know and then say, hey listen but if you guys can give me a strong referral I can discount this price $500 bucks or whatever the number is and it can be more specific over time. What I mean is this, referrals are more important than the amount of money you make at first because referrals grow your business for you, right? So, every time you get a referral most likely that person will refer you to somebody else and a good strategy is to pay cash for referrals.
So, what do I mean?
If you’re charging $3,000 for a virtual tour you do a great job, say hey who can you refer me to and then over the next few days you reach out let me clear and say hey by the way I want you to know I’m paying out $200 per referral for every paying client that you guys refer me to.
Well as a business owner or as a previous client if my search bar says hey listen I’m going to pay $200 bucks. Every few weeks or every time you refer somebody I’m going to think of 10 people who I could possibly refer to and send them your name, alright because I’m thinking well $200 bucks times 10 cool I’ll make a cool quick – geez for doing nothing right?
And we know that out of those customers only a few little probably on it but what happens as you create this compounding growth those folks become your referral network and therefore, that grows and grows and grows. And what happens is now your incoming leads are much higher volume than your outgoing marketing efforts need to be this is like magical and like next-level stuff.
If you think long term upfront this could really help your business, it really help any business if you’re looking for referrals in a market place that’s not saturated, you can go capture a lot of leads really quickly if you’re willing to pay those who give you the referral, right?
So, always keep track of these things and hold true to your word. The last thing you need to do is promise somebody you know $200-$500 dollars and then not pay them but if you can give a referral fee, a finder’s fee to anyone who gives you a referral this will dramatically increase the volume of people who are calling your phone, emailing you, and you reaching out to you and it creates a little bit of a salesman every time you get a new client or someone who wants to refer you, now obviously you have to do a great job and provide a great product and a great service to do this but when you have a referral network built up down the road your sales take care of themselves.
So, here’s what we need to think about and you’re first getting started mentioning referrals in saying the word partnership, I’m thinking long term, and what we always are looking for referrals and our willing to discount for it means a lot to the psychology of the prospect.
When they hear that they think well this guy, I mean this guy this team they care about me and they value my word. So, I’m going to refer them they best did a good job, alright? And I probably going to do a good job because they’re looking past my project in other projects well that’s kind of cool but I mean obviously in this conversation you don’t want to say I’m only looking ahead you want to be focused on their property but overall if referrals aren’t in the conversation then you’re going to get a better response from the initial sale and if you have to if you really have to offer do one of the tours for free or offer do a few rooms for free or a few floor plans for free and in exchange, say hey listen, I’m just trying to build rapport with your company and build partnerships for the long term.
This is like magical gold coming on the lips of anybody selling a service to a company. The company cares about their company and it makes it seem like you care about them too and you do in a certain sense you want how to have a great product and a great service but truthfully what you do care about the most is like converting the sale and getting more sales later.
Let’s just be honest about it that’s that’s the truth but it it’s a possible win-win and it can be truthful if you say hey listen, I do need referrals, I want referrals but I’m thinking about doing an amazing job for you so the referral can come next and all those things are win-win scenarios.
This is how you create compounding business growth and if you think this way upfront, you think long term you won’t get discouraged whenever you get told no because no is going to happen but for the folks who are on the fence when you find that person who’s not sure always look to get the referral and then follow-up for that referral and offer it incentive if you can.
Alright guys, thanks for watching this video. I hope you look it with this referral first process and hopefully helps you strive to grow and grow and grow in compounding ways that are magical and amazing and hopefully profitable. Thanks for watching this video, subscribe, comment, engage, let’s grow your business together. Alright, thanks for watching guys.