Does buying referrals really make sense?
As you previously discovered in part one of this series about strategically buying referrals.
It’s really more of how you actually go about doing it, would you not agree?
Case in point: as you recall from part one of this series on successfully buying referrals.
It’s not always cost effective to simply ask your best customers (directly) for referrals.Correct?
Because there’s always the possibility that your business, products or services may not live up to expectations, in which case, your best customer evangelist risk losing face in front of the people they respect the most.Which is not good, correct?
So whether you acknowledge it or not, asking directly for referrals (and you should) know and readily appreciate, can potentially be a mentally taxing procedure.Unless… Hm…?
Three Simple Ways That You Directly Benefit From Indirectly Buying Referrals For Pennies On The Dollar.
Think about the incredible marketing leverage that you (or your) competitors gain (on multiple levels), whenever you strategically buy referrals indirectly as opposed to swimming up stream and trying to get your best customers to fight their gut instinct.
And go out on a limb by referring someone they respect to your business, product and or service.
For just a moment, let’s revisit the psychology behind you receiving the two free tickets inviting you to free 90 minute introductory workshop.
First of all, both you and the person that attends with you (automatically) know before you step foot in the place, that there is no way that you’re not going to have some product or service marketed to you, correct? 😀
Adding Credibility To Your Marketing Mix Is A Proven way To Build An Incredibly Profitable Sales Funnel!
And yet, if you and a friend/associate has ever attended one of these free (90-120 minute) presentations, you still find it practically impossible not to attend,correct? 😀
Think about this entire process for a second; if a savvy marketer gives you (or I) two free movie tickets to your local movie theater for doing something.
The recipient readily goes about recruiting (selling) somebody on why they should accompany them to the movies do they not? Not the movie theater owner! 😀
Using Proven Low Cost Marketing Strategies For Buying Referrals Really Makes Sense!
Now contrast the cost of the two movie tickets, (which are extremely time sensitive in nature ), compared to the price of running two outrageously expensive quarter to half page size display ads in their local newspaper, or running two 15-60 second radio spots on a popular local radio program.
Or first producing -some rather expensive ad campaigns-, then buying two TV commercials spots on a local TV station.Is there really any comparison between the two distinctly different marketing approaches?
Having said that; now consider the following three major benefits to buying referrals indirectly as opposed to blowing the farm on these type of costly non effective image building advertising methods masquerading as your marketing strategy.
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Benefit # one: How would you like to get up to 350%( or more) better response to your low cost, high powered indirect referral buying strategies, without spending a proverbial fortune on fancy copy writers? And or outrageously expensive traditional advertising and or promotional methods!
In other words, your final results are not going to be determined by how well the copy is on your (on or) offline sales letter. Boy, what a relief. It also isn’t going to matter what type of fabulous free bonuses you’re going to include with your offer.
Benefit # two:Did you happen to notice that when you got your two free tickets, they didn’t say you also get this free five set CD and or DVD set on subject X. A blank dollar value! Nope.
They just included two free tickets and you and I did the real leg work didn’t we? That is to say, we made the phone calls, (or sent text messages) and asked around and basically (in the end) convinced (sold) another person to attend this free pitch fest with us! 😀
There Really Are Tons Of Small Business Marketing Tips Which Have Yet To Be inexpensively Tested!
Hopefully, the last example gave you at least one new potential marketing idea to inexpensively test.
That being, what if you or one of your commission only sales reps that you hire and train. Started actively looking for other small local companies and or organizations that meet once a month.Like Toast Masters.
And started financing their growth by funding the cost of the free goodies that they use to indirectly strategically buy referrals. Huh?
Base Your Upfront Out Of Pocket Costs On The Lifetime Value Of Your Ideal Customer/Clients And You’ll Usually Make Out A Whole Lot Better!
For ex; What if you put together a joint venture with a few small Mom & Pop local bookstores and whenever they send out (either) inexpensive emails and or snail mail postcards to their list.
They inform their subscribers that on Saturday (give the specific date) between the hours of X to X; the first X number of people that come to the store and bring at least one person over 18 with them that’s not currently a customer.
They’ll get a $20 dollar gas card.Or some specific number, just depending on what your particular lifetime value of a customer calculation reveals you can safely afford to spend. No purchase necessary!
Or give them a special VIP coupon that’s good for a large beverage of their choice at the local Mini mart gas station on route 12, and instead of paying $1.89 per large cup, their cost is just .$69 per cup for the next 6-12 months!
Some Of Your Very Best Marketing Campaigns Don’t Necessarily Have To Be outrageously Expensive!
Because you’ll pre pay the dollar upfront for them to the mini mart. Again based on whatever your specific lifetime customer value calculation says you can afford.
The math behind this particular example is this, (suppose) your lifetime value of your customer (per year) equals $350 dollars gross. Or X.
If you divide the $20 dollar gas card price into $350, you should get 17.5.
Or seventeen as a practical matter. Which means you can induce a maximum 17 people to bring a new potential customer with them to the bookstore.
The cost of that $20 dollar gas card or whatever proven referral generating freebie that you use (if you put a pencil to it), is probably ten times more effective than the cost of a traditional ad on local television and or radio etc. Don’t you agree?
Use Your Entrepreneurial Skills To Take Things To The Very Next Level Or Two!
Benefit # three: You’ve basically got a whole other untapped potential market place to strategically go after with this type of underground ninja marketing approach.
Take your local Adult education centers throughout the country.
What if you allowed the instructors that need the exact same customers as you, but are non competing with your business, to offer some inexpensive (yet) high perceived valuable free referral generating freebie to any of their paying customers.
Simply for them referring (in essence), getting a new customer to sign up with them for one of the instructors advanced (or continuing) classes and or a series of related classes, for some type of nice discount of course.
For ex; Once again, if your one year lifetime value for your customer is $350 dollars or X. If you decide that your referral generating freebie can’t exceed $20 dollars per referral.
Use Your Bank Account Filling Entrepreneurial Skills To Swing The Doors Of Opportunity Wide Open!
Then you know that you have the potential to ethically bribe 17 (or X number of ) people with some nice free gift that costs $20 dollars or less.
In exchange for them exposing your business to 17 new potential leads.($350 divided by $20 dollars = 17.5 people.)
If nothing else, you can capture their names (either) on or offline and systematically start your all important follow up process.
Because no matter what your particular niche is, this simple proven formula of capturing your prospects (on or) offline contact information and systematically following up with them over time will work for you.
That my friend is the power of buying referrals for pennies on the dollar! Any questions?
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