How To Build Your Referral Business

**jade** · 04-19-2010 05:07 AM

Building a referral-based business is a five-step process that involves cultivating a network of strategic partners who are likely to refer business to you.

1 – Compile your contacts into a database

If you don’t already have a database of your current and past clients, your recommended vendors and service providers, and potential referral partners, start compiling that information into an easily accessible format. There are numerous programs out there to stay organized, such as Top Producer and Act! On the web, you can use HighRiseHQ.com. Or, if you are short on cash, use Microsoft Outlook to keep track of your information.

2 – Organize your contacts each day

Make a commitment to spend five to ten minutes each day adding any contact information you’ve collected to your contact database. Whenever you collect business cards or write details down on Post-It notes, make it a priority each day to input that information.

3 – Attend a networking event each week

The best way to meet new people is to join a business or networking organization and attend events. You will meet a lot of new people to add to your sphere of influence.

4 – Commit to personally contacting two people each day

If you only contact two people per day – through phone conversations, email, or mailing a handwritten note – that translates to ten per week or forty per month. The more you touch base with people, the more likely they will be to refer business your way. Other ideas for follow ups – send out an annual home valuation to past clients, endorse local business owners in your sphere, or send local real estate market updates (for instance, if their home gains value). You should also try to meet your top referral sources in person once or twice a year.

5 – Send monthly follow ups

A great way to follow up with potential referral sources is to add them to your monthly real estate newsletter. Each month, you can send out local market statistics, housing trends, new listings, and a featured article in your area of expertise. Only send this newsletter to people who have granted you permission first – it can be incredibly annoying to receive unwanted email. Before you end any conversation you have, simply explain you offer a monthly newsletter and would they mind if you sent it to them.

**melody34** · 04-23-2010 12:36 PM

Hi

It’s simple common sense,if you are good at what you do,word will spread.Your work will speak for itself,you as the business owner won’t really need to.The best way to start you referral business is by ensuring that you keep customers happy and satisfied with reliable,quality and prompt service.They might even spread the word without you needing to ask them.Anyway,here are some tips to help you build your referral business :

1) Use your customer’s contacts : Once you’ve built up a strong relationship with your current customers ask them if they could forward you the contacts of other people who might be interested in the service you provide.Contact them and you could cite your customer’s name as reference.However, ensure that you have the requisite permission to do this.

2) Put it in writing : If a customer is happy with your work,ask them to put it in writing as that gives it more credibility.Ask them if you can use their name before you use it as a testimonial or anything else in your marketing plan.

3) Gratitude : Acknowledge all the referrals you recieve.Follow up with a phone call or send a thank you card.You could even be innovative and include discount vouchers or coupons for future purchases.

Thanks

**bryon** · 09-11-2010 07:37 AM

It’s simple common sense,if you are good at what you do,word will spread.Your work will speak for itself,you as the business owner won’t really need to.The best way to start you referral business is by ensuring that you keep customers happy and satisfied with reliable,quality and prompt service.They might even spread the word without you needing to ask them.Anyway,here are some tips to help you build your referral business :
1) Use your customer’s contacts : Once you’ve built up a strong relationship with your current customers ask them if they could forward you the contacts of other people who might be interested in the service you provide.Contact them and you could cite your customer’s name as reference.However, ensure that you have the requisite permission to do this.
2) Put it in writing : If a customer is happy with your work,ask them to put it in writing as that gives it more credibility.Ask them if you can use their name before you use it as a testimonial or anything else in your marketing plan.
3) Gratitude : Acknowledge all the referrals you recieve. Follow up with a phone call or send a thank you card.You could even be innovative and include discount vouchers or coupons for future purchases.