Growing a small business is tough work. The sales function is a time consuming task with a constant need to fill your “sales funnel” with fresh, qualified prospects on a regular basis. Finding the best qualified leads from your business does not come from a cold contact situation but from building a strong referral business. Discover the the benefits and 7 tactics to drive the referral marketing for your small business.

Referral Marketing Benefits

The business of referrals makes sense for most companies for the following reasons:

1. Referral marketing reduces your sales expenses and sales cycle. With less time calling cold prospects, your small business can focus on customers and their circle of influence.

2. Referrals can build your level of satisfied customers. The cycle self-perpetuates with more satisfied customers referring others to your company.

3. Referrals increase your sales revenue. According to world-renowned sales trainer, Tom Hopkins, in “Sales Prospecting for Dummies”; your closing ratio for non-qualified leads is 10 percent versus a 60 percent close ratio with referred leads.

If the prospect of building the referral end of your business is so enticing, why do so few businesses do it? Because they use the wrong approach in building referrals and have limited success. To ensure your business is on track to building referrals, follow these 7 tips:

1. Set A Target: In business, measure the results to improve performance. Set a clear goal with a time line. Example, 10% increase in referral business over the next 10 weeks.

2. Timing: Conventional sales wisdom claims the best time to ask for the referral is immediately after the close. This tactic is far too aggressive. Give your clients time to experience your service or product before asking for a referral. Ask for the referral at close only if your client is already delighted with your business.

3. Top 20: Not all customers are referral candidates. Find the top 20% that are ecstatic about your business and ask them for referrals. Make sure their network is the type of client you want.

4. Give and You’ll Receive: Give your clients extra service and follow-up support before asking for referrals. When you give willingly to your customers, they will return the favor.

5. Type of Customer: Inform your referring clients of the type of customers you can help. Provide a clear picture of the customer demographics will help your referral marketing.

6. Rewards Program: Provide special rewards to your referring customers on a regular basis. If a customer provides you with 5 sales, offer them something special, e.g. discounts.

7. Thank You: Lisa A. Maini, President of my Marketing Manager, recommends businesses need to establish trust to build referrals. Lisa says, “Create a basic thank you letter that can be personalized and sent to each referral you receive. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door.”

These tips are simple but when executed on a regular basis they can drive your referral business and build sales revenue. Start today and watch your referrals grow.

Effective business networking is the linking together of individuals who, through trust and relationship building, become walking, talking advertisements for one another.
Keep in mind that networking is about being genuine and authentic, building trust and relationships, and seeing how you can help others.

Everyone has their own talent, this talent must be developed. One of them is someone who is creative to make handicrafts. Handicraft industry is currently in great demand in various cities. There are so many kind of handicraft, such as sandals, bags, phone bags, wallets, hats, etc. This business is usually done by women. Along with increased skills and knowledge of women, not a few women who pursue handicrafts business that eventually became a big businessman. They produce a variety of cloth bags and wallets. These businesses are usually started from a hobby, women are very happy to collect various kinds of bags, so this makes them interested in opening business handicraft cloth bags.

Handicraft business can be categorized in selling skills and open-own business. In terms of selling skills, you are making the idea of Craft Design and you will be more satisfied in selling the work of your hobby is. After the spark ideas, you’ll sell it and you will be working for yourself, you are determining working hours and be responsible to himself.

Being entrepreneurs of this craft is not as smooth as one might imagine. There must be a special trick to make and sell properties, and smart in the market. It is the principal keys to success. Because making crafts can be classified seek additional income by selling expertise. There are several advantages to sell expertise. That time could be more flexible and you are free to decide whether or not bound by your service users.

Handicrafts are classified in the alternative seek additional income by opening their own businesses. You will get advantages such as more flexibility to realize Crafts Design ideas. However, you may have the skills for creating beautiful handiwork, but starting a successful crafts business demands a whole different set of expertise.