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Referral Marketing: Referral Fees are Really Sorry Bribes

By: Ben Needles

It still amazes me how most people see referral marketing and building referrals from clients as a means of offering forced incentives to get another person to take action. In this case, to send client referrals to me, so to speak.

There’s really two flawed notions here when it comes to referral marketing:

1. People like to give you client referrals; and,
2. People will provide referrals to you when you offer them a cash reward (or other inducement or incentive).

Yes, both are very dangerous referral myths. Why so?

First of all, I’ve rarely met anyoneβ€”client, colleague, or family memberβ€”who truly enjoys giving referrals to someone. Let alone, that personal actually responding actively when you go asking for referrals from the (however you now do that).

It just doesn’t happen. At least not consistently.

So what happens? Most people seeking referrals try to up the ante: They pile on an extra $25, or $50, or $100 if you send to them X-amount of referrals or referred business. They reason to themselves, If I offer a high enough bounty, others will get interested and that will create more referral flow for myself. False.

In actuality, the opposite is true: referral resistance (often silently) is what occurs. Why?

Well back to my first point: Most people don’t like referring business, or at the very least, don’t really know how to go about looking out for you and advocating for you. Why? Because they don’t always know why they should refer business to you.

And why is this? Because they don’t know how this will be in their own best interests.

Why? Because, as I just said, they can’t translate Me giving you a referral equates to this form of benefit for me, today in my life.’

And listen up: cash inducements are not the sole benefit people are seeking today. I won’t get into other issues, such as inducing or bribing people to refer and how that translates into your image and the perception of your referral marketing practices. But that can be a very real issue also.

So what’s the answer to getting more referrals for yourself? Transparency.

As in, showing the client, colleague or family member why giving referrals to you and recommending you to others truly is in their best interests. Think of any healthy professional where referrals are the top marketing tool: real estate, legal, insurance, investments – and you’ll see people sharing with others why speaking to you is in their best interests.

They’ve been able to form an opinion of you based on their experiences, and have objectively (not by bribes or inducements) determined you are trustworthy professional who has earned their trust and counsel.

It still amazes me how most people see referral selling and building referrals from clients as a means of offer forced incentives to get another person to take action. In this case, to send customer referrals to me, so to speak.

There’s really two blemished notions here when it comes to referral marketing:

1. live like to give you client referrals; and,
2. citizenry will provide referrals to you when you offer them a cash reward (or other inducement or incentive).

Yes, both are very severe referral myths. Why so?

First of all, I’ve rarely met anyoneβ€”client, colleague, or family memberβ€”who truly enjoys giving referrals to someone. Let alone, that personal actually responding actively when you go asking for referrals from the (however you now do that).

It just doesn’t happen. At least not consistently.

So what happens? Most people quest referrals try to up the ante: They pile on an extra $25, or $50, or $100 if you send to them X-amount of referrals or referred business. They intellect to themselves, If I offer a high enough bounty, others will get interested and that will create more referral flow for myself. False.

In actuality, the opposite is true: referral resistance (often silently) is what occurs. Why?

Well back to my first point: Most people don’t like referring business, or at the very least, don’t really know how to go about looking out for you and advocating for you. Why? Because they don’t e'er know why they should refer business to you.

And why is this? Because they don’t know how this will be in their own best interests.

Why? Because, as I just said, they can’t translate Me giving you a referral equates to this form of welfare for me, today in my life.’

And heed up: cash inducements are not the sole profit dwell are seeking today. I won’t get into other issues, such as inducing or bribing people to refer and how that translates into your image and the perception of your referral marketing practices. But that can be a very real issue also.

So what’s the answer to getting more referrals for yourself? Transparency.

As in, showing the client, fellow worker or family member why giving referrals to you and recommending you to others truly is in their best interests. Think of any sound pro where referrals are the top marketing tool: real estate, legal, insurance, investments – and you’ll see people communion with others why speech production to you is in their best interests.

They’ve been able to form an opinion of you based on their experiences, and have objectively (not by bribes or inducements) determined you are trustworthy professional who has earned their trust and counsel.

.

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About the Author (text)

Daryl Logullo is the Founder of Strategic Impact! and MaximumReferrals.com. He concentrates on referral building strategies for today\'s professional. Grab a FREE Sample Client Referral Letter ($199 value),
instantly delivered to you at
www.MaximumReferrals.com/am

LIVING IN THE SHADOWS.INFO

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