Read David Frey’s mini-course titled “Six Deadly Small Business Marketing Mistakes – Part II”.

David Frey

David Frey’s mini-course is reprinted here.

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Educate Your Tier 1 Centers of Influence with Special Reports

Arm your Tier 1 Centers of Influence with tools to help them to help their customers (and your prospects). You may consider giving your Tier 1 Center of Influence a supply of special reports that you have developed.

Again, if you’re a chiropractor and someone inquires about chiropractics to your Center of Influence they can give them a special report that will answer some of their questions. This will make your Center of Influence look good and it will also be an effective method of referring you.

Another idea is to purchase a best selling book-on-tape that you think they might be interested in and give it to them as a gift to let them know you were thinking about them. Information products about that teach your Center of Influence how to grow their business are always welcome and will let them know that you are interested in growing your business.

Tier 2 Centers of Influence

Tier 2 Centers of Influence are people whom you come in contact with on a regular basis in your personal life but aren’t connected to your industry. These are people who come in contact with a large number of other people. They too can multiply your marketing efforts.

Your Tier two Centers of Influence include but are not limited to the following:

1. Neighbors

2. Friends

3. Clergy

4. Small business owners

5. Corporate business executives

6. Accountants

7. Financial planners

8. Lawyers

9. Pest control people

10. Etc.

Your Tier 2 Centers of Influence are people that may have no idea what it is that you do. Take the time to clearly explain to them not only what it is you do but the importance of referrals for your business.

Go one step farther by inviting them to after-hours socials. Tell them stories about some results that your customer’s have experienced as a result of your product or service. Get them excited about what you do. Get to know what they do by asking them questions. Now each of you can get excited when you give valuable referrals, which in turn will be transferred to the new prospect.

The Power of Cross-Promotions

Perhaps the single most powerful referral program is a cross-promotion using endorsements from other well-respected people. It’s a simple idea, an associate sends an endorsement letter about you and your product or service to their customer list and you, in turn, do the same to your customer list. It’s a win-win.

The reason endorsement letters are so powerful is because people will buy from people they know and respect. How many times have you asked a personal friend, ‘Do you know a good place to buy __________?’ Or ‘Do you a good ____________ that I can go to see about getting _____________ done?’ You trust their opinion so you feel comfortable buying from them.

You can make it a one-way cross-promotion in which you have someone send out a letter to their customer list and you give them a referral fee for those people who buy your service. Or you can make it a two-way cross- promotion in which both of your send letters to your customers about each other’s products and services.

The are some examples of complimentary products or services businesses that can take advantage of this powerful strategy:

– Pizza place and video rental store

– Accountant and financial planner

– Toy store and fast food restaurant

– Dry cleaner and clothing store

– Paint store and tile business

– Jewelry store and wedding supply

The possbilities are endless. Brainstorm with people in your network to come up with potential promotions that you can do together. The payoff can be tremendous.

Ten Questions to Help You Become a Networking Pro

In my earlier years when I was naive I thought that my success would increase in proportion to the number of business cards I handed out. I handed them out in droves. But I couldn’t figure out why I wasn’t getting any business. After a few years of experience under my belt I realized that it wasn’t the numbers that count, but the quality of relationships that I nurtured.

To be a great networker you must become ‘you’ centered rather than ‘me’ centered. Recognize that people want to talk about themselves more than anything. They are their own favorite subjects. Take advantage of that and learn these 10 questions that will make people feel warm, appreciated, and important.

Zig Ziglar, the famous sales trainer once said, ‘You can get everything in life you want if you just help enough other people get what they want.’ This is so true. Thanks Mr. Ziglar.

The following are ten questions that Bob Burg, author of the book, ‘Endless Referrals’ gives to help you get to know potential referrers and leave a lasting positive impression.

1. How did you get your start in the widget business?

People like to be the movie of the week in someone else’s mind. Let them share their story with your while you actively listen.

2. What do you enjoy most about your profession?

This question elicits a positive response and good feelings.

3. What separates you and your company from the competition?

This question gives them permission to brag about their business.

4. What advice would you give someone just starting in the widget business?

This question makes them feel superior and allows them to do some mentoring.

5. What one thing would you do with your business if you knew you could not fail?

This question allows your friend to fantasize and they will be thankful that you cared enough to ask.

6. What significant changes have you seen take place in your profession through the years?

Asking people who are a little bit more mature in years can be perfect because it allows them to reminiscing about the good ole days.

7. What do you see as the coming trends in the widget business?

This is a specualtion question and positions them as an expert in their industry which make them feel important.

8. What was the strangest or funniest incident you’ve experienced in your business?

People love to share war stories but usually get a chance to tell anyone about their experiences.

9. What ways have you found to be the most effective for promoting your business?

This question, again, elicits a positivie reaction and also gives you an opportunity to see how they think.

10. What one sentence would you like people to use in describing the way you do business?

You are allowing them to give themselves a compliment. Who doesn’t like compliments?

You’ll notice something in common with each of these questions. They all center around the person you are talking to and allows them an opportunity to talk about themselves. Don’t expect to ask your Center of Influence each of these questions, but do have a few ready when you talk to others.

Start (or join) a Referral Group

Choose ten people that you think would be good members of your referral group. They may or may not be your Centers of Influence. Let them know that you are establishing a referral group and that they were one of the first people to enter them mind because of their great reputation.

Ask them to educate you on exactly what they do. Tit for tat. No favors, no begging, no debt, no smileyfacing. Just a clean, fair, intriguing and powerful approach.

Have monthly lunches when your group can get together and then perhaps visit one of the group member’s businesses to allow them to explain what they do. Find ways to serve your group members and educated them on how to grow their own businesses.

You can begin to grow your network slowly and invite other people who you or other members would feel good about recommending. It’s just a matter of expanding your network to tap into the network of other professionals. Simple, doable, easy. No selling required. Just honesty.

Here are the steps to maximizing your referrals and revenue:

1. Appoint yourself as the host of this network In other words, be their leader. (No need to tell them, however.)

2. So, now that you are the leader, ask yourself, ‘What do my constituents need most that I can provide for them at a very small cost to myself?’

3. The answer? Training in how to build their businesses via referrals.

4. Send a monthly note and update your group about each others businesses. You need to be consistent with this mailing (or emailing) each month. In effect, the monthly list/email also works as an effective reminder that you are there!

I have a friend in the financial services industry who sponsors a monthly luncheon. Members pay a quarterly fee which covers the cost of the lunch. He gets 50 to a 100 people at his meetings and has literally stopped his advertising efforts all together.

A Caution About Giving Referral Fees

Use a referral fee as your last ditch strategy. Money has never bred loyalty. Friendship, trust, and a positive relationship are what drive loyalty to you and your business. If you give referral fees you will undoubtedly run into a situation in which the referrer claims he gave you a referral and you disagree.

Or one of your competitors starts giving referral fees and you feel the need to continually match them causing a referral fee war (I’ve seen it happen). Another embarrassing situation is when your customer finds out that a referral fee changed hands which breaks the trust and confidence the relationship.

It just seems that whenever money enters into the equation and there is no surefire way to track it, trouble is on its way. I’ve seen too many good relationships go sour because of a referral fee dispute. It breeds everything you don’t want in a trusting relationship.

Conclusion

Establishing a referral program with your customers and other influential people is absolutely critical. Many small business people make the mistake of not institutionalizing a systematic program for referrals. They confuse word of mouth advertising with a referral system and, hence, overlook the single most effective advertising for a small business.

Don’t make the same mistake. Develop your networking skills and referral programs today and start receiving an endless stream of new customers.

The Most Ignored Small Business Marketing Strategy

Hang on for the FOURTH installment of ‘The Six Deadly Small Business Marketing Mistakes.’ You’ll learn how one of the most ignored, overlooked, and disregarded marketing strategies that could bring you a load of fast cash.

Now go out there and make it rain referrals!

Have a great week.

About the Author:

David Frey is the author of the best-selling manual, “The Small Business Marketing Bible” and the Senior Editor of the “Small Business Marketing Best Practices Newsletter.”

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Go to David Frey’s WillpowerSecret.com

*IMNewswatch would like to thank David Frey for granting exclusive permission to reprint this mini-course.

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