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Today we'll be discussing a strategy for getting your clients to refer you to the millionaire entrepreneurs in their network.
As methods like cold outreach and ads become more and more saturated every year that goes by, referrals become both rarer and more valuable.
Let’s dive in.
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As a service provider, there’s almost nothing more beautiful than a referral.
Compared to cold email marketing or running ads, few things are sweeter than being introduced to someone else who needs your exact service.
The problem?
Referrals can be highly inconsistent.
To the point 99% of service providers cannot depend on them as their main source of leads / prospects.
And when you run a service business, the flow of new leads into your business is everything. If that stream slows to a trickle (or becomes nonexistent), you can find yourself in a dangerous position where you’re depending on one or two clients for 100% of your income.
Second, the process of actually getting the referral is more convoluted than most people realize. And here's why.
First, a person-to-person referral is a transfer of trust.
And because of that, when your client refers you to someone, they are taking a massive risk. If they refer you to someone and you drop the ball or fail to deliver, it negatively reflects back on your client’s reputation and judgment.
This alone is enough to stop most clients from suggesting you, even if they think you’re doing a good job or are a nice person.
Second, if your strategy for getting referrals is based on hoping the client “knows someone who is a good fit,” you’re putting the burden of making the referral onto their shoulders.
While it's tempting to think your clients have you in the back of their mind 24/7, in reality, most clients don't think about you whatsoever.
Because of that, unless they find themselves in the very specific situation where they’re talking to someone who needs your precise service, it’s unlikely they’re going to refer you.
At the same time, most entrepreneurs know other entrepreneurs who have similarly sized businesses in the same industry. Meaning, it’s likely your clients know people who could be a good fit for your service at some point in time.
So, what’s the solution?
A Referral Kit.
I first heard about referral kits in the book Unstoppable Referrals.
*If this is a topic you’re interested in, I highly recommend the book, as there’s no way I can do this concept justice in a 750-word newsletter.
A referral kit is an offline media bundle that makes it easy for your clients to introduce you to potential prospects.
Regarding the offline media part, a referral kit can range from something as simple as a fold-out brochure, to a full-blown multimedia box that contains brochures, books, DVDs and/or thumb drives.
That said, this is not a direct response sales letter.
Instead, you want to deliver the kind of information a first-time prospect would need to get to know everything about your company (with the goal of making feel confident enough to reach out to you for an initial sales call).
What’s more interesting than the kit, however, is the strategy behind it.
First, by giving your client something physical, it allows them to introduce your business to potential prospects without having to put you in touch with the business owner directly.
This is massive, as it shifts the referral from “This is someone I vouch for who you should hire” to “Here’s an information kit from a vendor I’ve had a good experience with.”
It’s a small but profound difference, as giving someone a kit (versus making a direct intro) puts less liability on your client’s shoulders if things go wrong.
Second, the great thing about a physical bundle is that you can shift to a more targeted, proactive strategy. How?
By identifying people in your client’s network and asking if it would be OK to send them a referral kit (that includes a letter referencing the fact your client gave you permission to reach out to this person).
As you can imagine, sending this kind of media bundle to 25 or 50 people from your client’s network can work wonders for your lead generation efforts.
Sure, not every single person you send the kit to is going to respond.
But compared to something like cold email, where you might have to contact 1,000 people just to get one call booked (with an ice cold prospect), it becomes obvious how powerful this strategy can be.
In conclusion, I’m trying to do justice to a concept that an expert wrote an entire 200-page book about. So I highly encourage you to purchase a copy if this is something you’re interested in.
And no, we don't earn commissions on these.
However, this is a $10 investment that could provide you with a five, six, or even seven-figure return if you actually put the information into action.
💡 Takeaway: Rather than hoping and praying, Referral Kits make it both easier and less risky for your clients to send connect you with other business owners in their network.
🎁 Resources:
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