The Holy Grail for every business is the REFERRAL. 

Thousands of articles and books have been written on the topic and maybe a good portion of your business comes from referral. 

But if you're like everyone one else, myself included, I'd sure like to get more.

After working with hundreds of contractors I can safely say that 9 out of 10 DON'T have a system or process to get good referrals. Asking a client "do you know anyone" doesn't count.

I've seen just as many referral strategies as well.   What I've noticed is that the ones that actually generate referrals share one thing in common. 

They all give the customer something up front, whether they give you a referral or not.  Sounds odd, I know, but it's based on a law of human nature:  The Law of Reciprocity. 

Simply stated the Law of Reciprocity says that if you're given something from someone - you feel compelled to return the favor.

Here's how to apply this to your business. 

Pick out a premium to give to your clients. It should have a high perceived value as compared to your costs.  Restaurant.com is a good example. Another might be one of your services that has value or one you could do like gutter cleaning. The only thing you are really paying for is the payroll and if your guys or gals are not fully booked - it is essentially free.

Create a referral letter and send it to a test group of 50-100 of your clients - you will also include the premium.

Offer to send the same premium to any of their referrals (this makes them look good).

Send the premiums to those referrals.

Expect a 5% return.

Provide a simple form for them to list any referrals.

Click Here for a referral letter template that applies this method.

Last thought - Referrals are good leads, but it's not a done deal.  You still need to close them.  Our clients are closing 80-90% of their referrals.  Yours may not be that high, but you expect an above average closing rate.

If you need help executing this or any other strategy - call Mike Toll Free at (866) 926-5100.