What is referral marketing?
To understand how we can grow our businesses through referral marketing we first need to understand the term referral marketing. Let’s break the two words down. Referral means: Someone who introduces someone to an expert in their field. To be a great referral marketer we first must meet business owners that are experts in their field.
I don’t think you have to be the best at what you do and I don’t think your referral partner has to be the best either. Being the best implies that you have to be better than your competitor. You don’t have to be better, you have to be unique. And we are all unique! Unique means: Matchless, peerless, one of a kind, no competition, all alone. Wow we have no competition! What makes you unique? What does your business do differently than anyone else’s? Do you know what your unique selling point is, USP?
I learned mine from a vendor that I used in my business. I had been in business for over twelve years when I learned it. I own and operate Kwik Dry Restoration and Remodeling; I only handle insurance claims with fire, water and smoke damage. I had always felt inadequate about being a small company competing against national franchises. Key word “I was competing.†I was sharing the inadequacy of my company with my supplier. He was shocked! He said to me “Robert are you kidding, you are ten times better than those big franchises!â€
I was flattered and assumed he was just trying to make his customer, me, feel good. He told me that because I was such a small company my customer service was so special and so personal to every customer. He shared with me what my uniqueness was. I did not know what made me unique! He said first; I consult with my clients instead of trying to sell my service. If the project is too small for a claim I suggest they do not file a claim and help refer them to a sub-contractor that can help them. I do not charge a referral fee; I just want to help my customer and my referral partner. He said my second USP was that I don’t have any employees and only use contractors on each project.
We must know our USP and our referral partner’s USP in order to be great at referral marketing. We also need to be very specific about what we do. Less is more. What is your niche? To be great at referral marketing we must want to take care of our clients and contacts and meet their needs through the power of referrals. BNI’s philosophy is Givers Gain®. Givers Gain ® to me means creating a three way win. My customer or contact wins because I can help meet their needs in a way that I can’t personally do but can through the power of a referral. My referral partner wins because they have a new customer and that is why they are in business. I win because I have two people that absolutely love me and want to send me referrals.
The second part to referral marketing is the word marketing. Marketing is the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling, the act or practice of calling public attention to one’s product, service, need, etc.,
These are the synonyms for advertising, think about your referral partners when you read these words; announcement  ballyhoo  broadcasting buildup  displaying exhibiting exhibition  exposition  hoopla  hype pitch plug posting  PR proclamation  promoting publicity  puff screamer spread promo.
In essence referral marketing is helping your customers and contacts by promoting other people’s businesses and then they will promote your business to help their business and their contacts.