Referral Arrangements

Hi

I thought this would be worth discussing as it seems that people use referral arrangements quite differently. 

Some might just pay a flat fee as a referral reward and for others it just happens without any reward being offered as an incentive. 

The opportunities and methods to encourage referrals also seems to be quite varied too. 

Are there any tips that you would share for encouraging a flow of referrals? Are there any hints that you would give to avoid problems?

Will this be a key part in your new business activities for 2012?

Regards

Maxine

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efficiencycoach's picture

Encouraging referrals

efficiencycoach | | Permalink

Generating business by referral for accountants is a great low cost way of marketing - however it does involve an investment of time in the relationship.

My tips for encouraging referrals are as follows:

1) Identify people who have a complementary business to yours where you can both service each other's clients without conflict. Make sure you like the person who will be recommending you (or it just wouldn't happen)

2) Have a relationship plan in place for your referral sources so you are speaking regularly - and take the time to really get to know their business.

3) Be specific about what you want - SME or owner managed businesses is not specific enough. Think about age, industry sector, visible signs that they need your services etc

 

I hope that helps.

Heather

David Winch's picture

And I would add ...    1 thanks

David Winch | | Permalink

... to Heather's excellent (especially the one about tightly defining your 'ideal client') tips:

4) Ask for them!  There are two points in your relationship with a client when they are more likely to give you a referral - The moment they engage you and as you deliver a great job.

5) For a small practice or business, it might well be more valuable to offer a high quality referral in exchange, rather than a cash payment

I too hope these are helpful.

David Winch

Make Sales Without Selling and Get Paid What You're Worth

An interesting topic.

Azolla | | Permalink

An interesting topic. Excellent comments. I tend to agree. Also on balance I think it's best to get the referrals without offering a specific cash incentive. I think people tend to offer referrals due mainly to reasons other than financial incentive.

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