Referral Marketing Guide

Special Report: quot;The Ultimate Resource Guide to More Client Referrals – Second Editionquot;

NOTICE: You MAY Give Away or Share the
Content Herein—Just As Long as You Do Not Sell
or Edit the Content In Any Way.
Copyright ©1999-2008 Strategic Impact! Toll-Free 1 (866) 826-2175

http://www.ReferralMarketingInsider.com
http://www.Strategic-Impact.com
http://www.MaximumReferrals.com
http://www.Marketing-Referral-Tools.com
http://www.ReferralMarketingInsider.com
http://www.CPAReferralSystem.com
http://www.Sales-Letter-Tools.com

ALL RIGHTS RESERVED. No part of this report may be reproduced or transmitted in any form
whatsoever, electronic, or mechanical, including photocopying, recording, or by any informational storage
or retrieval system without express written, dated, and signed permission from the author.

DISCLAIMERS AND/OR LEGAL NOTICES: The information presented herein is derived from original,
unedited, collected sources, as of the date of publication. This report is for informational purposes only.
While every attempt has been made to verify the information provided in this report, neither the author nor
affiliates/partners assume any responsibility for errors, inaccuracies, or omissions. Any slights of people
or organizations are unintentional. If advice concerning legal or related matters is needed, the services of
a fully qualified Professional should be sought. You should be aware of any laws that govern business
transactions or other business practices in your country and state. Any reference to any person or
business, whether living or dead, is purely coincidental.

We do not endorse nor guarantee the accuracy of the contents and are not liable for any consequences
resulting therein.

2
Copyright ©1999-2008 Strategic Impact! | MaximumReferrals.com All Rights Reserved

Hundreds of referral ideas and strategies at MaximumReferrals.com/blog


Table of Contents

Foreword...................................................................................... 4
Referral Marketing: Why Offering Referral Fees Is Really a
Sorry ‘Bribe’.............................................................................. 5
Seven (7) Strategic Tips On Dealing With Referrals From Your
Strategic Thinking Business Coach.......................................... 7
Strategic Alliances - Business Referrals on Steroids................. 10
Networking Strategically: How to Get the Ultimate Referral.... 13
30 Client Referrals or More a Year -- How to Get ‘Em.............. 15
How to Turn More Referrals Into Paying Clients...................... 17
Want More Referrals? Take Care of Your Current Buyers........ 20
Building a Referral-Based Clientele.......................................... 22
Building Great Referral Alliance Partnerships.......................... 26
How to Create Word-of-Mouth Referral Networks................... 29
Why You Should Be Using quot;Collaboration Marketingquot; to Grow
Your Business Quickly........................................................... 32
Develop Your Own Referral Network........................................ 35
How Creative Intelligence Alliances Can Help You Grow Your
Business ................................................................................ 38
Strategic Alliances - 5 Steps to Creating Productive Alliances.. 41

3



Foreword

From the Desk of Daryl Logullo

Welcome—

And you’re gonna love this report!

The pages ahead can be very profitable for you. In fact, in the coming weeks,
the advice here could be your ace in the hole.

Why?

Because using referrals is simply the most intelligent, cost effective and savvy
way to increase your income … work less … and get the freedom you deserve. Period.

Sure, ideas are everywhere. But there’s no one out there turning over the rocks
hiding the real referral “gems” of wisdom. So in this free report, let me whet your
appetite to think about new referral concepts.

I’ve combed through several articles and advice and assembled them here
(including a few of my own.) The truth is, I probably could have provided another 500
pages of advice!

There’s so much more I want to tell you about referral marketing, but I’ll just let
you get started by reading the pages that follow. Go for it!

Daryl Logullo

PS –

Chime in with your comments at my blog at: www.MaximumReferrals.com/blog

4



Referral Marketing:
Why Offering Referral
Fees Is Really a Sorry
‘Bribe’

I t 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 anyone—client, colleague, or family member—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?
5



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.

About the Author
Daryl T. Logullo is the Founder of Strategic Impact! a referral consultancy
located in Vero Beach, Fla. He concentrates heavily on alliance and referral
building strategies for today's professional. Get a Free Report, quot;The Most
Powerful Referral 'Secret' Ever Discovered,quot; instantly delivered at
http://www.strategic-impact.com/Rule

6



Seven (7) Strategic Tips
On Dealing With
Referrals From Your
Strategic Thinking
Business Coach

R eferrals can be and many times are a vital element of your marketing plan.

Sometimes, and many times too often, referrals are taken for granted or they are not
sought. How you deal with referrals makes a significant difference in whether you will
receive repeat referrals. If the person giving you referrals has a positive and pleasant
experience and it is through a process that they can trust, then you will receive more
referrals in the future.

There are several key elements in building up a trusting relationship with people who
refer others to you. Your Strategic Thinking Business Coach offers the following seven
(7) strategic tips on how to establish and solidify that trust with your referrers.

#1: Commit to and develop a strategic approach to using referrals as one way to grow
your business.

#2: Commit to and always treat a new prospect that has been referred to you with the
highest level of appreciation, importance and care. Remember, how you treat this
prospect will impact your relationship with the person who referred him or her to you.
You want to make sure your dealings with the prospect reflect well on your referral
source. And another important note: even if the prospect does not develop into a
customer or client, you want them to still sat great things about how you treated them.

7



#3: Commit to and always respond promptly to a referral. The quot;life spanquot; of a referral
can be very short. It is essential that you act immediately. If you fail to act immediately
you are risking damage to your relationship with referrer and missing an opportunity
with a new prospect.

#4: Commit to and always reward the behavior of your referral source. Always thank the
referrer, even if the referral does not result in a new customer or client. You may
consider a small token of appreciation in the form of a small thank you gift or something
else that would be valued by the referral source.

#5: Commit to and always keep your referrer informed of your progress in contacting
and pursing the prospect referred to you. Your referral source, in the majority of cases,
really wants to know how things are going with the referral. Let your referrer now when
you contact the prospect and meet with the prospect. If the prospect becomes a
customer or client ask for permission to tell the referral source. If you have difficulty
contacting the prospect, contact your referrer. Many times the referrer will offer to assist
you in making contact.

#6: Commit to and always thank the referral source for new customers and clients. This
is absolutely mandatory in my opinion. It is good business etiquette and it is simply the
quot;right thing to do.quot; This will reinforce the action of giving referrals and will encourage
more referrals. You might also suggest that the new client thank the referrer and
possibly take them out to lunch to celebrate the new relationship.

#7: Commit to and develop a method to evaluate your referral plan and make the
necessary adjustments to your plan in a timely manner to ensure continued
effectiveness of referrals.

About the Author
Glenn Ebersole, Jr. is a multi-faceted professional, who is recognized as a
visionary, guide and facilitator in the fields of business coaching, marketing,
public relations, management, strategic planning and engineering. Glenn is the
Founder and Chief Executive of two Lancaster, PA based consulting practices:
The Renaissance Group, a creative marketing, public relations, strategic
planning and business development consulting firm and J. G. Ebersole
Associates, an independent professional engineering, marketing, and
management consulting firm. He is a Certified Facilitator and serves as a
business coach and a strategic planning facilitator and consultant to a diverse list
of clients. Glenn is also the author of a monthly newsletter, quot;Glenn's Guiding
Lines - Thoughts From Your Strategic Thinking Business Coachquot; and has
published more than 325 articles on business.

8



Your Strategic Thinking Business Coach encourages you to develop a strategic
marketing plan that includes the use of referrals to grow your business. If you
would like to learn more about how a strategic thinking business coach can
facilitate and guide you in that endeavor, please contact Glenn Ebersole today
through his website at http://www.businesscoach4u.com or by email at
jgecoach@aol.com

9



Strategic Alliances -
Business Referrals on
Steroids

I f you have had success using referrals to grow your business, you are going to

love strategic alliances.

There is simply no better way to get referrals than a strategic alliance, but it must be
with the right partner.

A strategic alliance is when two businesses with complementary products and/or
services that share the same prospective customers get together to form an alliance.

For example, a printing company could have a strategic alliance with a company that
sells laser toner. They share the same type of customers, their products are
complimentary but they are not competitors.

Another example would be a car mechanical repair workshop and a panel beater.
Another would be a plumber and an electrician.

When you start thinking about it the opportunities are endless.

How does it work?

I knew you would ask that.

A strategic alliance is where you provide your strategic alliance partner with a gift or
benefit for them to gift to their prospects or customers.

This gift or benefit must be seen as valuable and worthwhile by both your alliance
partner and his prospects and/or customers.

10



What do I offer?

The offer is usually a discount or a credit on your own products or services, so aim to
break even on the first sale.

You would have to agree, a cheap price to pay for a new customer.

A printing company could offer say a $200 printing credit when the new customers
printing bill reaches $700. A motor mechanic could offer a free 21 point safety check.

Your offer really needs to strong & compelling so that your prospective alliance partner
sees real value and is confident that his prospects and/or customers will see the same
value.

The partnership

There are two ways to set up a strategic alliance, they are.

A One Way Alliance - a one way alliance is where you provide the gift/benefit to your
alliance partner and they pass it on.

A Two Way Alliance - a two way alliance is where you and your alliance partner provide
each other with gifts/benefits roughly of the same value so you each can gift them to
your own prospects/customers

The method

There are a number of ways to execute a strategic alliance, they are.

· The Big Hit - sending an alliance letter to every customer and or prospect, outlining the
offer & possibly including a discount or credit voucher.

Learn how to use Sales Letters to grow your business.

· Drip Feed - sending the offer to a select amount on a regular basis ie, if the companies
customer base is large it may bet better to send say 100 per week as opposed to 3,000
in one day knowing that if 10% responded straight away they would not have to
personnel to manage the enquiries.

· Point of Purchase - when a customer makes a purchase he is presented with the
special offer as a Thankyou for the sale.

· Hand Out - handing the offer out or a dumb letterbox drop.

11



As you can see, there are many options to consider and your choice will be based on
the type of business you have, your budget, your sales target and many other issues.

About the Author
Peter Kirkham is a Qualified Printing Trade Specialist and Commercial Printing
Broker with Print Acumen Pty Ltd in Perth, Western Australia.

With over 40 years of industry experience, Peter provides a wonderful collection
of insider tips & proven methods that will save you a substantial amount of
money & time on company printing. His FREE guide, Printing Secrets Exposed is
freely available to everyone to download.

12



Networking
Strategically: How to
Get the Ultimate
Referral

D on’t be shy about it. You’re networking for a reason: You want more business.

By networking strategically you can get more business than you know what do with.

In order to network strategically you’re going to need leverage. Before you can get
leverage you’ve got to understand what you’re trying to move, or in this case
accomplish.

You must first very clearly understand who your target market is. Be specific as
possible. Everyone or anyone is NOT a good answer. A service company within a 10
mile radius, with 5-10 employees, that’s been in business for at least 3 years, uses xyz
or abc Customer Relationship Management software and works with other small service
businesses is a very good answer.

The ultimate referral is an introduction to someone who isn’t interested in doing
business with you. Instead they want to help their clients by referring you to them.
Instead of getting a referral to one new customer they’re going to refer you to one new
customer several times a month for years to come. Which would you rather have? 1
new customer that does $1,000 worth of business with you, or 3 new customers every
month that each do $1,000 worth of business with you. That’s what you’re looking for.
Finding them and building relationships with them is your networking strategy.

Once you understand who your ideal customers are, think about who else works with
that specific market. Do you know them already? Do you know someone else that
already has a relationship with them? Where are they likely to be that you can have an
13



opportunity to meet them? The easiest way might be to ask your existing clients to
introduce you to their other vendors. This is a great way to demonstrate that you’re
competent and have satisfied clients who are willing to refer you.

This is not a process that’s going to work overnight. First you’re going to need to find
these other vendors. Then you’re going to need to build a very strong relationship with
them, and earn their trust. Only then are you likely to get a stream of referrals from
them.

The ultimate referral is a two way street. It’s also the best way to build an incredibly
strong relationship with someone. If rather than referring that one new client, you refer
them to a complimentary service provider who can refer them to 2 new customers every
week, you won’t soon be forgotten.

Look for ways to leverage the time you spend networking. Search for opportunities to
give others the ultimate referral. Network strategically and before you know it you’ll be
experiencing your most profitable year ever!

About the Author

Scott Ingram is the founder of NetworkInAustin.com, a business networking
resource for networkers in and around Austin, Texas. All of his success in
business has been because of the relationships he’s developed through
networking. He was even referred to his wife, they were setup on a blind date,
talk about the ultimate referral! You can learn more about strategic networking by
reading Scott’s Business Networking Blog or by referring to the Networking
Resources section on NetworkInAustin.com.

14



30 Client Referrals or
More a Year -- How to
Get ‘Em

D o you get all of the referrals you want?

Most professionals don't because they're afraid. Afraid they'll hurt their client
relationships. Afraid they won't cultivate any new business. Or afraid they'll appear
cheap or salesy.

It's an imagined psychological line in the sand you're afraid of crossing with people. It's
in a concept I teach called quot;D.V.quot;, or Damage Verge. You're frightened that by bringing
up the word quot;referralsquot; you'll push your clients, cross that line, and create damage.

Let me give you an example.

Of 5,200 investment and insurance professionals surveyed earlier this year by

my firm Strategic Impact!, an overwhelming 79 percent said they rely on referrals
as their primary source of new business. Eighty-three percent of those
professionals had at least 100 clients. Yet the median number of referrals they
received from their clients over a 12-month period was just 6 to 12! That means
that, on average, only about 10% of their clients were generating referrals. That's
horrible! And being passive causes it.

If clients are your best source of new business then the figure indicates a tremendous
problem. The question is why? My answer is Damage Verge: A psychological barrier
where you imagine the worst possible thing will happen if you ask a client for a referral.

Before you can even think about how to bring the subject up, your brain kicks into warp
speed and says, quot;I can't ask them for a referral; they might get mad at me. . . feel upset.
. . be uncomfortable. . . [insert your excuse here]. . . or worst yet, they'll just say, 'No!'quot;

15



What I'm referring to is nothing more than your conscious mind gets into the act, and
you wrongly start envisioning that worst-case scenario coming to life. You see yourself
offending someone, being presumptuous, asking the wrong way, feeling embarrassed,
and finally ruining a prized relationship.

Four ways to break through

1. Be more in tune to your client's communication style. The Damage Verge is
different for every client and customer, depending on that person's communication style.
Still other clients get instantly turned off, regardless of what you try to discuss with them.
Understanding your clients' varying styles of communication and receptiveness to your
goal of building more business will go a long way in cultivating referrals.

2. Know how to 'ask' for referrals. Nothing evokes more fear in professionals than the
thought of sitting down with a client and quot;asking themquot; for referrals. So don't! That's
right--don't ask for referrals. Focus on earning personal introductions from clients. The
key is that you must test and confirm with every client that they are finding value in you
and your work. Use a monthly meeting, lunch, or quarterly review to touch base. I ask
one simple, very powerful question: quot;Mrs. Client, tell me: How am I doing in my
relationship with you?quot; The answer allows the referral door to swing wide open--or
temporarily close tight. Either way, you've got a much better read on the relationship.

3. Practice with your C-level clients, and then move up. Practice on relationships
where the stakes aren't so high. Take some of the pressure off yourself by building self-
confidence and enthusiasm--and seeing results--with B-level and C-level clients. It's
highly unlikely that you would ever offend someone who has confirmed your value. But,
if you do upset someone, let it be a C-level client that wouldn't be irreplaceable if they
should take their business elsewhere.

4. Give clients a reason to share you with others. I believe in the 80/20 Rule when it
comes to client referrals. It says that 80 percent of your clients utilize only about 20
percent of the services you have to offer. One way to counter this is by bundling current
services as quot;value-addedquot; extras--this shows appreciation for your current client
relationship while simultaneously giving your clients more reason to suggest your
services to others. Remember, you want to introduce the subject of referrals with your
clients without adversely affecting the relationship at all. You want to get near their
damage verge, but you must never cross it. It's like stepping near thin ice--without ever
falling through. Stay in the area where the relationship provides enough support for
what you're saying--and don't overload it.

About the Author

16



Daryl T. Logullo is the Founder of Strategic Impact! a referral consultancy
located in Vero Beach, Fla. He concentrates heavily on alliance and referral
building strategies for today's professional. Get a Free Report, quot;The Most
Powerful Referral 'Secret' Ever Discovered,quot; instantly delivered at
http://www.strategic-impact.com/Rule

How to Turn More
Referrals Into Paying
Clients
60% of all small business owners, sales and solo-professionals claim that more than
half of their new business comes from referrals. Yet when asked about the process they
so successfully use to get those referrals and turn them into paying clients, most will
have a puzzled, deer-in-the-headlights, stupefied look on their face, and keep quiet.
Only a handful of professionals can clearly articulate where their referrals consistently
come from and how they turn them into a new business.

Those that do – understand the power of a system and frequency of exposure. To best
illustrate this, let’s look at how two consultants handle referrals.

At first glance John and Steve have virtually identical practices. They are both
management consultants, both have introduced executive coaching to their “product”
mix. They are excellent at what they do and have stellar reputation among their
customers and peers. But there is a difference…

John gets almost five times as many referrals as Steve, and he turns 95% of them into
new clients. How, you ask? See if you can spot a difference...

Steve’s name occasionally pops up in conversations his clients have with their business
associates. Since he does a good job, people are often intrigued by the results he
creates, ask for his contact information and call him to inquire about his services. Those
calls typically lead to an appointment.

In terms of frequency of exposure, Steve’s potential new clients might hear his
marketing message only twice before the meeting: when they first get his information
from a business colleague, and during the initial phone conversation.

17



At first glance, John’s case isn’t much different. His name comes up in conversations
where he’s praised for his great work. His contact information is passed on, and he too
gets an inquiring phone call leading to an appointment with a prospective client. But
that’s pretty much where the similarity ends.

Immediately after the call, John sends out a hand-written card saying “thank you for
interest in my services, I’m looking forward to our meeting.”

He also sends a handwritten thank-you card and a small gift (like a $5 Starbucks gift
card) to the person who gave him the referral. (I guess John understands that the best
way to develop a habit is to reward it in the first place – so he tries to make his referral
sources feel good about mentioning his name. And it works!)

The following day, John sends out a small package with positioning materials – a
welcome letter, an article relevant to prospect’s situation, and an audio CD. This will
allow the potential client to “sample” John’s expertise on the subject, build trust,
increase the appetite for his services, and position him as a valuable authority.

Incidentally, John knows that many of his best prospects won’t have time to fully review
those materials. He also knows it really doesn’t matter. All he wants is to see his “stuff”
sitting on prospect’s desk when he walks into their office.

But he’s still not done. A couple of days before the scheduled meeting he calls his
potential client to briefly confirm the meeting objectives, time and place.

After the meeting, John immediately sends out another handwritten “pleasure meeting
you/thank you” card.

So let’s review how many times John’s prospects are exposed to his marketing
message:

1. When they first are referred to him in a conversation with a business colleague.

2. When they call him to inquire about his services.

3. When they get his handwritten “looking forward to meeting you” card.

4. When they get his Positioning Packet. (And again when they make time to look
through the materials he sends out)

5. When he makes the reminder call two days before the meeting.

6. During the first meeting. (Notice, that at this point prospect has been exposed to
John’s marketing message five times – comparing to only two times in Steve’s process.)
18



7. When they get the handwritten “thank you” card after the meeting

Plus, sending a thank-you card and a small gift to the referral source might prove helpful
as well. Sometimes, motivated by the gesture, the referral source might choose to take
a more active part in the process, inquire about how things are going, and offer
additional help.

There is one other thing that separates John from Steve. John understands that his
clients want to give him referrals but often don’t know how to do this. So he takes time
to educate them and makes it easy for them to pass his information on.

He hands each new client a sample of a great Attraction Tool (most likely an audio
program or a book), and informs them that he’ll gladly send this Attraction Tool to any of
this new client’s business associates at absolutely no cost and no obligation – all they
have to do is ask for it.

He might even hand the new client a few postcards promoting the Attraction Tool and
encourage him to send it out to their associates. Why bother? Because by sharing this
information John’s new clients are actually helping their colleagues. And it’s easier and
less awkward to send out a postcard and to share a resource, than to hand over names
of business friends. All this increases the chances of John’s name coming up in casual
conversations.

I can already hear you whining: “but that’s too much work, I can’t do that in my
business”, etc., etc. And you are right – it does take extra work to set this SYSTEM up.

Do you have to do this? Hey, it’s your business – you don’t have to do anything you
don’t want! But the fact is – frequency builds familiarity. Familiarity builds trust. And we
all do business with people we know, like and trust. So you decide if adding a few extra
steps in the process could help you get more referrals and, eventually, paying clients.

About the Author
Adam Urbanski, the Marketing Mentor, helps Independent Service Professionals
and Small Business Owners attract more clients. For more promotional tips and
a FREE 32-page marketing guide go to http://www.themarketingmentors.com

19



Want More Referrals?
Take Care of Your
Current Buyers

T ake advantage of your happy customers. Allow them to help you gain more

sales.

Do you keep in contact with your buyers after they move into their home? Average
producers have no more contact with their buyers after they close. They receive their
commission check, heave a sigh of relief that they closed, and are content to move to
the next prospect.

What a waste of time.

After investing anywhere from two weeks to eight months with a happy buyer, to let
them simply disappear into the sunset is wasting a valuable resource. It is basically like
flushing money down the toilet. Have you ever purchased something and had a great
experience?

Did you tell others about your experience and refer them so they could have the
opportunity to be as happy as you were? When you have great service and an overall
good experience with a particular person or company, do you feel they have earned
your permission to ask for the sale? Of course they have, and so have you.

Learn some key information about your buyers.

Anniversary dates

Close dates (Home anniversary)

Birthdays

Children's birthdays
20



Holidays

Anything else of significance to that buyer

MAIL them out a nice letter or postcard on these days. DO NOT just email them. It is
informal, takes no effort, has no quot;humanquot; touch attached to it, and you have no idea if
they will ever see it or show their spouse or significant other.

Thank them for allowing you the opportunity to help them. Ask them if they know of
anybody looking for a home and if you may be of service to them. If they do know
someone, ask them to set up the introduction for you. It is WAY MORE POWERFUL.

The idea is to always stay present in their mind. Think of how often people move to
another home. Moving is such a large decision that, oftentimes, people ask for opinions
of their friends and family. They solicit the advice of others to make their transition
easier. This is why you always want to remain top of mind.

About the Author
Curt Fletcher, is the author of quot;How To Sell More Homes and Increase Your
Income.quot; His goal is to help people gain confidence in their own abilities and
maximize their full potential in creating success, wealth and happiness. To book
Curt for a meeting, conference, or event, contact Curt Fletcher Success
Strategies via email curt@thelikeabilityguy.com http://www.thelikeabilityguy.com/

21



Building a Referral-
Based Clientele

S alespeople love referrals. They’re the sincerest form of compliment and a

remarkably cost-effective route to new business.

The idea of attracting referrals is so popular that sales trainers who bill themselves as
referral gurus make fortunes promoting magical systems that supposedly deliver more
referrals than an agent can handle, all in return for tuition at a three-day seminar. What
they talk about for three days is a mystery to me. Referrals are really pretty simple stuff.
A lot of it you can only acquire through perfect practice of your scripts, over and over, of
referral-generating and referral-cultivation tactics.

Referral Truths and Consequences

Before you turn even a moment of effort away from prospecting activities and before
you put all your hopes into winning business through a full-tilt referral-generation
program, be aware that in addition to all the benefits that come with referrals, a 100%
referral-based business has some downsides. Proceed with awareness of these
ironclad truths:

• Truth #1: Especially for newer agents, over-reliance on referrals results in slow-growth
simply because early in an agent’s career there isn’t a large enough database of
existing clients and contacts to draw upon.

• Truth #2: Relying entirely on referrals for client development is a narrow, exclusive,
unbalanced approach. For one thing, if incoming referrals decline you won’t have other
prospecting systems in place to bail your business out of trouble. What’s more, when
referrals do come in, most will be for buyer prospects rather than seller prospects. What
the referral gurus never say is that their approach develops buyers’ agents – when
sellers’ agents are the ones who experience greatest success and build the strongest
long-term real estate sales businesses.

22



Building a Referral-Based Clientele

A referral-based business is a business that generates most of its leads as a result of
contacts provided by friends, family, clients, colleagues, and other associates. Sounds
great, doesn’t it? It is great, if – and here’s a big if – you have a large sphere of
influence and enough patience to wait out a lag time of at least 90 days, and most of the
time longer, between when you begin to cultivate referrals and when referrals begin to
generate revenue for your business.

Building a referral-based clientele is a long-term strategy rather than a quick-fix tactic. If
you’re looking for near-term results (and what newer agent isn’t?) you’re better off
developing clients through a traditional lead-development program that involves
prospecting, conversion of expired and FSBO listings, and open houses.

Relying exclusively on referrals, especially when you’re a new and undercapitalized
agent, is a quick form of business suicide that will move you out of the real estate
industry within a year, guaranteed. Instead, consider referrals a second-stage strategy –
one that follows your initial round of business development ¬and contributes to the long-
term growth and health of your business

What is a Referral?

At its core, a referral is a recommendation.

In it’s best form, a referral is a high-quality lead and a high-probability prospect that is
introduced to you by someone both you and the prospect regard highly.
Referrals may come from family members, friends, business associates, social and
business contacts, or past and current clients.

Sources of Referrals

Most referrals come from current clients, past clients, people you’ve met through
networking situations, and people you know through social or business dealings. The
upcoming sections provide information for working with each group of potential referral
contacts.

Current Clients

Current clients are people you are actively representing, right now, in real estate
transactions. Current clients are a rich pool of referral opportunity mainly because, more
than any other group, they have real estate on their minds. They’re in the midst of deals
that they’re constantly talking with their friends, associates, family, and neighbors. Their
conversations revolve around their real estate wants and needs, their moving plans, real
estate trends, and market activity.
23



If you don’t ask your current clients to recommend you to their friends or to refer their
friends to you for follow-up, you’re really missing out on a huge opportunity to reach
potential prospects. You can bet that your name comes up in your clients’
conversations, even if it’s just to say they have an appointment or that they’re awaiting
information from you. Putting in a few good words on your behalf would be a natural and
easy thing for them to do. You just have to ask. You talk to your clients regularly to
communicate about the sale of their home, finding a home, their transaction progress,
or progress toward closing. During the course of those conversations, ask for referrals.

Past Clients

These are the people you’ve helped through real estate transactions in the past. They
have first-hand knowledge of the quality of service that you provide. You need to tell
them that you would like to provide the same level of excellent service to their friends
and family by requesting their referrals.

Clients you’ve recently served provide the most fertile opportunity, both because their
experiences are fresh in their minds and because they are still buzzing about their
recent move to everyone they know in the world.

Networking

In sales, networking is a buzzword for building business contacts into referral alliances.

The objective of networking is to meet success-oriented people with whom you can
exchange referrals, advice, counsel, contacts, and even wisdom. Ideally, networking
results in professional relationships with others who are committed not only to their
success, but to your success as well.

Truth is, most salespeople talk about networking more than they actually do it. They
attend a Chamber of Commerce or Rotary Club meeting, have an enjoyable lunch, visit
with a few friends, and chalk the time up to “networking” even though no new alliances
were formed, no existing alliances were deepened, and no referral resources were
generated. In other words, no networking took place.

To make networking work for you, follow these tips:

• Network with the right mindset. When you network, set your mind to develop prospect
recommendations, not just the names of leads.

Many referral alliances are established with the single objective of generating leads.
Attendees learn the names of new businesses, new managers, newly arrived residents,
or others who are possibilities for your future contact. Now, a lead from a referral
alliance is better than no lead at all, but it’s a long cry from the name of a prospect
24



provided by a networking associate who shares extensive background and then offers
to put in a few good words on your behalf.

• Acquire warm referrals. A warm referral begins when a networking associate makes
contact on your behalf with a person who is in the market for your services. Warm
referrals involve calls or correspondence that convey your qualifications, the quality of
your service, and reasons why prospects should at least interview you for the
opportunity to represent their interests in real estate transactions.

When establishing networking relationships or referral alliances, work to gain a mutual
agreement, so that those in the network will engage in the practice of exchanging warm
leads.

Business and Social Contacts

Many people you meet socially or through business dealings will never become clients.
They may have previously established agent relationships or they may not be in the
market for a real estate transaction. Nonetheless, they’re important to your business
because they’re in a position to give and receive referrals.

Notice the words “give and receive” in the previous sentence. The law of reciprocity is
alive and well in 21st century business circles. It’s the old tenet of “I’ll scratch your back
if you scratch mine.”

In his book The Seven Habits of Highly Effective People, Stephen Covey talks about
emotional bank accounts into which successful people must make deposits before
making withdrawals. Apply that wisdom as you build your referral network. Start by
sharing business referrals, counsel, help, and wisdom with others and before long the
recipients of your kindness will repay you with like efforts. By helping your friends,
family, and associates build their businesses, in time they’ll help you build yours.

When dealing with your referral sources, make it your goal to provide service and value
in excess of expectations and to keep your accounts with others in the black, rather
than the red.

About the Author
Dirk Zeller is an Agent, an Investor, and the President & CEO of Real Estate
Champions. His company trains more than 250,000 Agents worldwide each year
through live events, online training, self-study programs, and newsletters. He's
the widely published author of Your First Year in Real Estate, Success as a Real
Estate Agent for Dummies®, The Champion Real Estate Agent, and over 300
articles in print.

25



Building Great Referral
Alliance Partnerships

T oo many small businesses don't have an integrated marketing strategy and

plan. Instead, the marketing tends to be very reactive to whatever is happening to the
business currently.

You want to build the business through word-of-mouth, but you don't have any system
for generating referrals or word-of-mouth business. For most it gets even worse than
this because you're passively waiting for clients to introduce you to prospective new
clients.

It's a long slow process to build your business through referrals this way. Even if you
have a systematic approach your success will likely only produce a trickle or small
stream of new business.

Create Referral Alliance Partnerships

If you really want to create a flood of referrals, then consider establishing referral
alliance partnerships. Identifying the right referral alliance partnership could be worth
100 times more than getting a referral to one additional client.

Many professions can build strong referral networks by partnering with other products
and services providers. For example, an accountant can productively send and receive
referrals from financial planners, business attorneys, payroll services, insurance
providers, and mortgage brokers to name a few.

Become referral alliance partnership focused and watch your business soar to the next
level. A referral alliance partner is any business contact that could potentially lead you
to hundreds of new clients and visa-versa.

26



Think in terms of logical services that are up and down the line from your own service.
Are there products or services that it's reasonable to think that anyone who is buying
them is also likely to be looking for your type of service?

You should also think in terms of individuals or business contacts that are well
connected. These are the people who understand the value of continuously expanding
their circles of contacts and circles of influence.

Think about individuals or business contacts that you believe you could really help.
When you look to help someone first, they'll be more likely to allow you to educate them
on how they can help you in return.

I'm not suggesting that existing clients can't make for great referral sources because
they certainly can. They should know what your business is capable of as much as
anyone. Because they appreciate your work, clients should be one of your best sources
for word-of-mouth.

The most successful businesses create referral mechanisms to pursue both avenues for
lead generation. But, complimentary businesses that serve the same market can be
more highly motivated and could introduce you to many more qualified prospects.

Forming Referral Alliance Partnerships

There are a lot of ways to form referral alliance partnerships with both clients and
referral sources. Just calling someone to tell them that their friends or clients could
really benefit from your services is probably not the best method. I'm ok with telling folks
that your preferred method of meeting new clients is through referrals, but it takes more
than just that.

You need to invest time and energy in teaching each other about your respective
businesses. Offer to invest in getting to know them and how you can help their business
first.

Find out what makes for great prospects for their business and learn more about how
they serve their clients. Investigate to learn more about what truly makes their business
unique and special from competitive alternatives in the marketplace. Don't settle for
them telling you they're professional and courteous. You have to dig a little deeper to
discover how their uniqueness makes a real difference for their clients.

Here is the best question you can ask a potential referral alliance partner. quot;How would I
know when I run into a good prospect for your business?quot; You should also ask them,
quot;How would I know when I run into a good referral alliance partner for you?quot;

27



Encourage your referral alliance partners to consistently share client success stories or
case studies. Success stories and testimonials bring the business to life and help
reinforce the message about the value being offered and what makes the business a
great choice.

Ask your referral alliance partners how they would most like to receive referrals. Also,
find out what the process looks like once a referral lead is shared.

Now here is a BIG secret in forming your own referral alliance partnerships. Are you
ready for this?

Even by offering to get to know their business first and what makes for great referrals,
you can train them to be a great referral partner for your business. You do that by
asking them to share and then show them what you're talking about by putting
examples for your own business in front of them.

By doing this you are building the relationship, but you are also immediately adding
value to them in how to articulate their business.

So if you're ready to take your business to the next level, start targeting potential referral
alliance partnerships today. When you create multiple referral sources, you'll generate
all the business you can handle.

About the Author
Kevin Dervin is focused on helping small businesses that are ready to grow, but
struggle with how to consistently attract more clients. Visit http://www.proven-
small-business-marketing-solutions.com for more great marketing information
you can put to use in growing your business today.

Follow his Small Business Marketing Tips and Ideas weblog at
http://www.proven-small-business-marketing-solutions.com/blog.html

Find Kevin's Kansas City based KPD Marketing practice at
http://www.ABCDgrowth.com and subscribe to his free ezine called ABCD Grow.

28



How to Create Word-of-
Mouth Referral
Networks

T he most effective sales team you'll ever find is enthusiastic customers. The

reason is simple enough: Customers aren't paid to praise. When a customer becomes a
passionate believer in your brand, it means you truly earned it. Whenever they buy your
product or service, customers feel like special club members.

But a repeat customer alone doesn't create a sales team. The trick is to transform that
dedicated buyer into a promoter who spreads the word and converts friends, family and
associates into customers, too. By building great word-of-mouth, you nurture an all-
volunteer sales force that generates leads, boosts sales and leverages marketing
dollars. Here are three basic ways to persuade people to talk up your business story. As
you develop the customer sales force, you'll find other options suited to your business.

1. Set Up a Referral Program
The easiest starting point is to ask customers who are already fans to recommend you.
First, let them know you're creating a referral program by sending out a letter or a
postcard that explains how much you value their business and that your continued
quality depends on their referrals. You'll get a better response if you include an incentive
-- say, a discount on the next order or a gift for every referral sent your way.

To keep building advocates, send your referral program letter to every new customer
within a few days of his first purchase. You might also ask for written testimonials about
your products, which can be included on direct mail postcards, mailers or brochures or
posted on your website and included in e-mail marketing. Send these testimonials to
targeted customer lists, along with your appropriate sales materials.

Customer referrals can also be mailed to prospects to help open doors or to introduce
you to important contacts. For instance: quot;Tom Smith thought you'd want to see this.quot;
29



Then follow up with phone calls.

Once you have set up the referral program, Business Contact Manager for Outlook
2003 lets you to track the referrals. Each Business Contact or Account listing has a
Referred By field that you can use to quickly identify the source of the referral, whether
by advertisement, direct mail, seminar, trade show, internal referral, external referral,
partner or public relations.

In addition, the Source of Leads Report in Business Contact Manager quickly gives you
insight into customers you'll want to contact. This pre-formatted report lists all of your
Accounts and Business Contacts, grouped by how they were referred, whether by
advertisement, direct mail, seminar, trade show, internal referral, external referral,
partner or public relations.

2. Elevate Your Profile
Whether you sell upmarket services or mass-market widgets, you can generate positive
publicity to make your company stand out -- although it takes some sustained effort to
build recognition.

As a professional service, you can position yourself as the go-to authority for media or
industry news reporters. That requires some investment in crafting an innovative speech
or survey or advocacy position that gets you noticed on the conference or trade show
circuit. You might also hire a publicist to help get exposure. Such pros are often paid on
a per-project or per-performance basis so you aren't on the hook for hefty retainer fees.

Or, you can publicize on your own -- for instance by highlighting your family's
background or its homegrown recipes. Your goal is to weave an emotional story or hook
that will draw press.

You can also become identified with a cause or a charity. Ben & Jerry's Ice Cream, for
instance, was founded on only (USD)$12,000 back in 1978. But the two owners created
a national powerhouse out of high-priced unconventional flavors and the good will of
philanthropy. Before that, few companies talked about social responsibility. Nowadays,
hundreds do.

Either way, the important thing here is to be sincere. Promote only what you really
believe in. To begin building publicity, create a personal and company media kit, which
can be quickly done with Microsoft Publisher.

3. Choose Smart Partners
By forging alliances with businesses that target the same customers as you do, you'll
create a word-of-mouth customer network that refers business. For instance, if you're a
pediatrician, you might leave your business cards at the reception area of a local
30



daycare center. Likewise, the center might put up some posters on your office bulletin
board. A parent who uses daycare services might recommend you to another.

Or, let's say you own an auto body shop. You can partner with a car wash/detailing
service. The car wash might mail out your flyers along with monthly invoices and also
place a stack of flyers on the counter for customers. You obviously do likewise. Take-
out delis and caterers provide another matching combo. You get the idea.

You can also develop special arrangements with partners to offer discounts or special
offers -- printed on the back of the flyers -- that are only available to customers who
patronize both businesses.

Don't forget your suppliers and vendors. Ask them to recommend you to their
customers. Remind them that by referring sales leads or business to you, you're helping
to build their business, too. To make it work, you must return the favor.

Experts say that customer referrals and word-of-mouth are about 10 times more
effective than other marketing.

About the Author

Joanna L. Krotz writes about small-business marketing and management
issues. She is the co-author of the quot; Microsoft Small Business Kit quot; and runs
Muse2Muse Productions , a New York City-based custom publisher.

31



Why You Should Be
Using quot;Collaboration
Marketingquot; to Grow
Your Business Quickly

W hat is Collaboration Marketing?

Collaboration Marketing is an abstract mind-set used to describe a business building
process that involves two or more entities (with similar, but non-competing products,
services or ideas) that agree to contribute their existing assets (people, time, money,
processes and resources) for the synergistic betterment of a newly formed relationship,
business, or process.

What?

Ok, here's a better way to understand quot;Collaboration Marketingquot;.

Collaboration Marketing

Collaboration Marketing, (CM) often referred to as a Strategic Alliance (SA), Joint
Venture (JV's), or Corporate Partnering (CP) can be defined as quot;a mutually beneficial
relationship between two or more partiesquot;. Collaboration Marketing can range from
being very simplistic, quick, informal one-time events to very formal, long-term projects,
relationships, or even the creation of a completely new company or company division.
The power and possibilities that you can accomplish from a well-planned quot;Collaboration
Marketing Processquot; are numerous, exciting, and (can be) quite profitable.

In this article, I'll focus primarily on giving you some high level examples on the benefits
of using an informal Strategic Alliance for getting new clients quickly.

32



The underlying principle that makes a Strategic Alliance so powerful is that they work on
the basis of a quot;trusting relationshipquot;. Trust among the participating parties, trust between
the network of clients, members and any other circle of influence you or a potential
Strategic Alliance partner may have. Trust that in most cases has taken you or your
future Strategic Alliances partner months and even years to develop, cultivate, and
nurture.

Ok, stay with me while I give a you an example of quot;the reason whyquot; Strategic Alliances
work...

Think about how you make your buying decisions. What's the first thing you usually do
when you need to make a product or service purchase that you've not used or
consumed before. In most cases you'll ask your a family member, friend or business
associate for a referral. Are you asking for a referral because you don't know were to
find the product or service you're seeking? Unlikely, the Internet, Yellow Pages, and 411
information services are overflowing with invasive ads for products and services (this is
also another reason to use Strategic Alliances, but we'll talk more about penetrating the
quot;Noise Barrierquot; in a future Collaboration Marketing article) More then likely, your asking
someone you quot;trustquot; because they have already gone through the sales experience with
a particular vendor and can possibly save you time, money, and frustration based on
their experiences.

Let's take an example of how a start-up company used a Strategic Alliance to generate
new clients within one week with little to no marketing and advertising cost.

Simon opened his Web Design Company with a passion for creating websites, logos,
and custom graphics for his clients. Simon was a skilled graphic designer, but his sales
and marketing skills were based solely on theory and what he learned from a few books
he had recently read. Simon wanted to do a promotion offering 25% off his services for
new clients. Simon and I had a conversation about this promotion and asked me my
advice and thoughts on this type of promotion. His objectives were to find new clients
quickly without spending a lot of money on marketing. I told him that he had two primary
objections to overcome since his business was new, he currently had only one client
and his competition in the Web Design space was fierce and while competing strictly on
a discount price point may work, I suggested he use a Strategic Alliance to keep his
prices at a competitive market rate to obtain new clients, while creating a quot;leverage
switchquot; with a complimentary business owner that already had the a trusting relationship
with the exact type of clients Simon was looking to provide service to. I suggested
Simon call local printers, illustrators, and web programmers in his area. I had him pick
local vendors (so he could actually go meet these other business owners, which builds
rapport and trust) that work in complimentary, not competitive businesses. Simon
contacted a local print shop, introduced himself and offered to provide a quot;Web Designquot;
division to the print shops existing base of over 300 clients. Within one week, Simon
33



and the owner of the print shop wrote an email letter to his existing clients announcing
the new service. Within two weeks Simon gained an immediate influx of client requests
with an acquisition cost of zero!

The reason this relationship worked is based on the established trust the printer had
with his clients and the trust that Simon built with the printer. By showing him his
portfolio, proving to the printer that Simon was capable and skilled, meeting him in
person (not necessary, but it's an added way to build trust and rapport) and offering the
printer an added profit stream opportunity to open a new quot;web divisionquot; with minimal to
no out of pocket costs. This was clearly a win-win Strategic Alliance. The printer was
able to provide a profitable service (that his clients were asking for) and Simon was able
to position himself in front of an established quot;warm marketquot; of prospects.

What Strategic Alliance opportunities could you use to expand your business this
quickly?

About the Author
Christian Fea is a Collaboration Marketing Specialist. He educates business
owners on Strategic Alliances, Joint Ventures, and Corporate Partnering Tactics.
Specifically, he shows you how to implement, strategize, and align yourself with
others that can get you to where you want to be in your online and/or offline
business in the shortest amount of time. He can be reached at
http://www.christianfea.com

34



Develop Your Own
Referral Network

B usiness alliances are valuable bridges that can be used to reach new customer

audiences. These alliances are typically like-minded businesses that serve the same
audience demographic but offer separate, complimentary non-competing services or
products.

A business, recognizing the importance of nurturing existing client relationships,
typically develops a firm foundation of client trust. These clients need other services.
With a business referral network, not only does your business benefit from the added
exposure offered through this network, but your clients benefit as you are providing an
important service to them as well.

By giving your customers access to preferred vendors who may offer value added
discount incentives, you are saving your clients time and money, and what could be
more valuable to them than that?

Certain professions in particular have a responsibility to recommend other professionals
to their clients. A dentist, for example, even the best dentist, doesn't make it a practice
to perform oral surgery, that's reserved for the oral surgeon. So it makes perfect sense
that the dentist would recommend a qualified oral surgeon to his or her patient when the
need arises. Similarly, a general practitioner wouldn't think of performing brain surgery
or offer cancer treatment to his valued patients.

Many doctors refer other specialized doctors based upon the needs of their patients and
this is an extremely common and necessary practice in the medical field.

But the medical field is not the only industry that benefits from developing proactive B2B
referral relationships. Some other businesses that benefit from this type of synergistic
relationship may include:
35



· a realtor offering a recommendation to a mortgage broker
· a website designer referring a website hosting company
· a restaurant referring a florist's valentine promotion
· a home builder recommending a landscaper
· a plastic surgeon suggesting a cosmetic dentist
· a hotel wedding coordinator referring a DJ or musician
· a financial planner recommending an insurance agent

Your recommendation to a trusted alliance business partner is greatly appreciated by
your customers. Most everyone appreciates even the smallest comfort level offered
through a referral, especially when searching for important service providers. Letting
your fingers do the walking through miles and miles of advertisers in the yellow pages is
a scary proposition when you need a new home loan or a plumber to fix a serious leak.

When considering an important decision like who to call for medical care, home repair,
personal services etc...choosing a service provider from an advertisement is really no
better than a crap shoot. At least a referral, even one that comes from a 2nd or 3rd tier
source, is better than no recommendation at all.

There are two major benefits associated with referring pre-qualified associate partners

1. You offer a service to your valued customers by helping supply a need
2. You get more business as your partners reciprocate the favor and recommend you to
their customers.

The latter is called cross promoting. Cross-promotional strategies allow your business to
have access to a warm market that could never be reached any other way.

Email offers a simple, cost effective way to facilitate the process of referring and getting
referred. Not only does email make it easier to introduce your clients to your referral
partners and vice versa, but with the right tools you can also measure and track the
success. This referral growth success is realized through your own customer base as
well as the customer base offered through your alliance business partners. By
piggybacking on mutually beneficial business relationships, your exposure increases
while your ad spend decreases. The more referrals you get, the less you have to
advertise.

Aligning yourself with synergistic qualified business professionals is a win-win scenario,
not only for you and your referral partners, but for your valued customers as well.

About the Author
Diana D'Itri is the Exec VP of RaveBiz, a leading referral marketing and
technology company. She's a key driving force behind educating clients on how
36



to generate more quality referred customers through practical applications and
an automated, web based system called the Rave APG eReferral.

For a free download quot;31 tips for boosting referral businessquot; go to
www.ravebiz.com. Diana can be reached at (866) 284-3020.

37



How Creative
Intelligence Alliances
Can Help You Grow
Your Business

W ho do you report to when you are the boss? How do you deal with

unmotivated days, or those times when you feel overwhelmed?

Successful people have known how to deal with these pressures for a long time.

In the early 1900s a man named Napoleon Hill studied the highest achievers of the day
and discovered their secret: a network of other success-oriented people who kept them
focused and on track.

He called this phenomenon a quot;master mindquot; because the calibre of ideas produced by
the group were greater than the ideas produced by the same individuals on their own. If
you've experienced being in a group of people who run with the ideas of others and take
them to the next level, then you know how it works.

Corporations, especially creative ones, use this idea in brain storming sessions. You
can use this kind of creative intelligence to help grow your business.

A quot;Creative Intelligence Alliancequot; is a group of like-minded people who meet on a
regular basis to generate truly creative ways to reach a specific goal. In business, this
can be a vital resource, and even more so for small business owners.

Your alliance can be structured in a variety of ways - each having different names
38



depending on the format.

Benefits of a Creative Intelligence Alliance

Feedback and Brainstorming

It's always easier to come up with ideas for someone other than yourself. Your alliance
can help you come up with ideas that you may not be able to see.

Accountability

If you say, quot;This week I am going to finish up the copy for three brochures,quot; you should
expect to tell your team members that you are finished by the next meeting.

Support

Your meetings will get you out of your workspace on a regular basis, improve your
morale and renew your sense of commitment. They will also expose you to people who
have gone through many of the same experiences and who can provide advice and
reassurance.

Networking

Sometimes you will find that you need an introduction to a person at a particular
company, and the best way to get that introduction is to find someone who knows that
person.

Testimonials

Nothing carries more weight to a potential customer than the positive opinion of
someone they know and trust. Demonstrate your services or products to your alliance
partners, and let them become champions of your cause.

Types

Master minds are the original Creative Intelligence Alliance. Usually, people building a
master mind try to assemble a group of people who are already at the level of success
they are aiming to achieve, because they can give them a quot;hand up.quot; Of course, if you
are going to invite very successful people to join your master mind, you will have to
figure out what it is you are offering them in return, other than just the flattering sense
that you value their opinion.

Other people prefer to have an Advisory Board. This tends to a group that focuses on
39



one specific business in the group, though if all the members are in complementary
fields, they can all benefit from participation.

Success Teams - these groups are not always focused on business; they are about the
unique goals of the members. quot;Success Teamsquot; usually use the Barbara Sher
principles, explained in the book Wishcrafting.

Other types include: Neural Nets, Brain Trusts, and Referral networks.

Getting Started

Figure out what it is you hope to gain from belonging to a Creative Intelligence Alliance
and then match the people to the team. Send them invitations to join you in an
exploratory meeting to see if the personalities mesh well, and go from there. There are
tools to help you set up the right kind of alliance for you and the other team members -
simply do a quick search at any search engine for quot;starting a creative intelligence
alliancequot; and you will get the help you need.

Don't delay, what could you achieve with the power of a Creative Intelligence Alliance
behind you?

About the Author

You can find more information about Creative Intelligence Alliances at
http://businesspartnerships.ca and general business information at
http://allaboutbusiness.ca Gisela is a Founding Director of pixcode Inc., a
Canadian company that specializes in creating and managing profitable
Internet properties, including Business Partnerships Canada and All About
Business Canada.

40



Strategic Alliances - 5
Steps to Creating
Productive Alliances

S trategic alliances have become an essential part of a company's growth

strategy. Successful companies of all sizes rely on the leverage that alliances provide
to:

Enter new markets


Increase market share


Decrease operating costs


Increase delivery capacity


Innovate products/services


Although the reasons for forming an alliance with another company may be unique, the
actions required to develop a productive alliance are typically the same. Outlined below
are the main activities and key considerations in creating a productive alliance.

1) Outline Objectives - Make sure that working with alliance partners makes sense for
your company. There are many advantages to forming an alliance with another
company, but it is critical that you identify your specific needs prior to engaging in any
alliance development activities. Clarifying your alliance needs up front will help focus
your efforts and provide a valuable point of reference for the rest of the alliance process.

Key considerations:

What is currently limiting your company's growth?


41



What are you looking to achieve through forming an alliance with another

company?

How does the use of alliances align with your overall business strategy?


What types of alliances are you looking to establish?


What is the profile of your target alliance partner?


How many alliances are you looking to form?


2) Recruit Partners - Find and be found by the right companies. Although it is easiest to
create alliances with companies that approach you, most people find that the right
companies are not always aware of the opportunity to form an alliance with you. It is
often necessary to perform a quot;partner campaignquot; to increase awareness within your
target companies.

Key considerations:

What does your company have to offer a potential alliance partner? (i.e. what's in

it for them?)

How will you market your alliance opportunity to attract the right alliance

partners?

What information will you provide to allow companies to self-select?


What companies are on your target alliance partner list?


How will you approach each of your target alliance partners?


Is it important to keep your competition and/or customers from finding out about

your partner search?

3) Assess Opportunities - Qualify and select potential alliance partners. In order to
identify a productive alliance partner, it is important to objectively evaluate the qualities
and opportunity each alliance represents. Be warned, the largest companies are not
always the most productive alliance partners.

Key considerations:

How do your goals and objectives align with your potential alliance partner's?


What capabilities, resources, and opportunities do they bring?


42



How does your potential alliance partner's target customer, average deal size,

and primary buyer, compare with yours?

How have they demonstrated a commitment to alliances?


Have they demonstrated a willingness to be open, flexible, and collaborative?


How would working with them impact your key stakeholders (employees,

customers, suppliers, and other alliance partners)?

What are the potential risks of working with this company?


4) Agree Terms - Define each company's rights and obligations. Agreeing to an initial
set of terms for the alliance up front is critical to establishing an effective working
relationship between the two companies. Keep in mind, the more equitable the terms,
the more motivated both parties will be to make business happen.

Key considerations:

How much time, resources, information, contacts, etc. are being committed by

each company?

What will be done, by when, and by whom?


When and how will alliance performance be assessed?


What is the exit clause if the alliance does not work out?


How and when will revenue and/or costs be shared?


Who owns the primary relationship with new customers?


How will each company's proprietary information and practices be protected?


5) Implement Alliance - Initiate collaboration and fulfill alliance commitments. At this
point, all the agreements should be in place to allow both companies to work together. It
is often valuable to test the alliance as soon as possible (through a project, marketing
effort, product development effort, etc.). This will quickly bring any issues into the open
and allow you to see the true viability of the alliance.

Key considerations:


Who, from each company, will be responsible for ensuring the success of the

alliance?

43



How are you allocating and tracking resources devoted to the alliance?


How often will alliance updates/reviews be performed and who will participate?


How are you ensuring that your alliance partner's resources are prepared to sell,

deliver, and/or support your products/services?

About the Author
Selixis is a leading provider of business partner development services focused
on creating a competitive advantage and increasing business opportunities. Our
team of experienced professionals understand what it takes to create, manage,
and improve productive alliance partners. We work with leading and emerging
software, technology, service, and consulting companies that are committed to
making alliance partners an essential part of their ongoing business. If you are
interested in learning more about creating productive strategic alliances, please
visit our website ( http://www.selixis.com ) or contact us at inquiries@selixis.com

44


Referral Marketing Guide

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (15)

Similaire à Referral Marketing Guide

Similaire à Referral Marketing Guide (20)

Plus de GUY FLEMMING

Plus de GUY FLEMMING (20)

Referral Marketing Guide