Page 78 - Schooley Mitchell Marketing Manual

SCHOOLEY MITCHELL
MARKETING MANUAL
Referrals
Tell & Ask Referral Strategy
Paid Referral Sources
I have had several people ask what I say when I’m setting up a paid referral relationship. I think that sometimes we sim- ply ask someone if they would like to make some money by referring business to us
and then slap them on the back, go home and pray they will send business our way.
I would be very surprised if that method works at all. Even if they agree to do so, I would doubt they will act.
First of all, the approach should be much more of a professional nature. We want them to understand that this isn’t an "on the side, under the table" thing because that has the wrong feel. We want them to understand they are helping us grow our professional business and that they can share some significant benefit from helping us do so. It should go something like this;
“Many businesses make the mistake of assuming that other people know they are trying to grow their business. I don’t want to make that mistake because I am certainly looking for new clients to improve my business. In fact, if you could give me some advice and would like to help me grow I would be very thankful. In fact, I’d even be willing to share the wealth if you are interested in helping me. As you know, I only make money if I save my clients money, so I would be more than happy to share those savings with you for anyone you refer to me.”
If they agree to that premise, that’s when you have to make the direct "ask". You should be prepared before you begin this conversation with some idea of who they may know. Once they say, "yeah, I might be interested", that’s when you say, “Great, would you be willing to give me some advice?” (They always say yes) “You know I would really like to see if I can help that business next door to yours. Do you know the financial person there?”
Obviously, you may ask for some other example as opposed to a neighboring business but the point is to be prepared to ask for a referral right there if appropriate. It takes a little research – so do it beforehand. Asking them if they would provide you with advice also makes them feel important and ultimately, more cooperative.
In addition to this method of providing the message, and asking for a specific referral, you need to nurture the relation- ship. It won’t continue to happen if you don’t build on the relationship. You will get much more benefit if you speak with the person on a regular basis:
1) Meet with them for coffee
2) Explain clearly what you are looking for and communicate that to them every time you add to the list of potential tar-
gets
3) Take them to lunch
4) Continue to ask them if they can provide you with advice
5) Deliver their check/cheque to them once in a while
6) Pay them as often as you possibly can. Send a check/cheque every time you get one from a client – don’t accumulate
them – it’s not about efficiency or saving a stamp – it’s about reinforcing the activity
7) IMPORTANT – STORIES WORK – tell them stories of successes – not just yours but all of SM. Tell them that we had
one Consultant that paid $20,000 to one referral source last year and $40,000 to another. Tell them we had one Con-
sultant that paid out more than $50,000 last year to various referral sources.
8) Give them gifts
Remember this – find reasons this entire process will work as opposed to reasons it won’t!!
Manual Revised: April 3 2025 Confidential
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