Every small business owner gets their start through referrals – from family, friends, or the first paying client. Over time this word of mouth advertising helps the company grow and expand… and ironically lose site of the power of the referral – or become unsure how to cultivate them as the size of the company means less face time with each customer. The Referral Engine: Teaching Your Business to Market Itself by John Jantsch is a fantastic book for those looking to create a structured system of creating referrals. John is also the author of the well known book Duct Tape Marketing.
More sales are welcome, but the best part of referred prospects are that price becomes less important, as John puts it, “when your business comes highly recommended by a friend, the role of risk is minimized, and that fact alone moves the significance of price comparison down the list.” He talks about how non-referred prospects may instead think to themselves, well if I’m disappointed with the result… at least I won’t overpay!
Are you sick of having to justify your price – or worse… negotiate away your margins? This just might be what you’re looking for.
Below is a brief video by John to give you a taste, however if you want specific actionable strategies you’re better served to pick up the book for yourself. Highly recommended.