I have often said that people do business with people, not companies. For this reason, it is imperative to remember that our clients are assets — and assets are the greatest things that we own.
Referral Marketing refers to the activity of growing one’s business through the nurturing of referrals. Referrals are recommendations from satisfied clients to new prospects that can benefit from the product or service that you offer. There are three (3) levels to Referral Marketing:
- Doing business with people in your referral network (first-level to you);
- Doing business with people in their referral network (second-level to you);
- Doing business with people in the referral network of your clients (third-level to you).
It is easy to do business with people in your referral network. If you offer a product or service that other business people need, you will probably close new business within your referral network — if you do a good job and charge a fair price. People in your referral network will naturally seek to do business with you. (This is “first-level” business.)
If you do a good job with people in your referral network, you stand the possibility of having them recommend you. When clients in your referral network recommend you, the power of Referral Marketing begins to take hold. Each time a client in your referral network recommends you, you have the opportunity to close new business with someone you did not know before. (This is “second-level” business.)
As “heady” and exciting as second-level new business is, it pales in comparison to what naturally comes next: “third-level” business.
When a client of yours recommends you to someone that you did not know before — and when that client then recommends you to someone else — now you have “third-level” business. If you can achieve “third-level” business, it means that you have a valuable product or service that others appreciate, and that you have mastered Referral Marketing!
I enjoy “third-level” business in my business, and I would like to show you how to do the same! Download the free eBook in the right-hand sidebar to learn more.