Finding leads to grow a business is often a daunting and time consuming task. Leads can be generated through marketing, advertising and PR initiatives, but prospects have to see and react to these campaigns. Many sales leads can be generated through cold-calling, but this requires a lot of time with a relatively low success rate. Building a strong referral business ensures qualified leads come from companies and clients that are supportive of your business, making closing the sale quicker and easier. Implementing a referral campaign takes strategy and planning (like every marketing initiative), but costs less than advertising and PR and takes less time and is more successful than cold-calling.

Identify a Target Market

Providing a clear description of desired clients makes referring clients that much easier. Look at your current client base and the characteristics of the most successful relationships. What types of businesses are desired? What is their annual revenue? How is it decided whether or not they need your company’s product or service? Who is the right decision-maker?

Commission your Top Clients

The more referrals you ask for, the more clients you will get. But you can start with your best and happiest clients. These companies will be most likely to provide the best referrals and may be more willing and excited about making an initial introduction. Even if they just inform the prospect of your call, it will be much easier to attract their attention than a cold call.

Make the Call

After knowing the types of prospects to look for and which clients to ask, start asking and following-up with referrals. Lead the conversation by referencing the name of the business partner that referred them and let them know how long you have been working with them.

Reward Referrals

Send a thank-you note or provide incentives to show gratitude and appreciation to those who provide valuable referrals. Provide discounts on your company’s own products and services or provide gift certificates to restaurants, cafes or other activities. If these expenses are not in the budget, consider bartering for them. By using a trade exchange, these items can be purchased without cash, but still provided to show value and gratitude to referring clients.