How to Start a Referral Based Business

Business owners face many challenges getting their businesses off the ground. The main one is getting clients or customers. A strong client base determines whether you sink or swim. One of the strongest ways to get customers is through referrals, where they come to you. Follow these steps to start a referral-based business.

Instructions

Difficulty: Moderately Challenging

1. Understand that referrals are one of the most effective methods of marketing. Starting with a cold call takes a lot of effort and may lead nowhere. With a referral, you're halfway there with a client who wants what you offer.
2. Produce a needed service. If you want customers to come to you, you must offer something they need.
3. Set yourself apart from your competitors. If you are a graphic artist, perhaps you provide a better end product or work in a variety of mediums. Perhaps you have a faster turnover or high-tech gizmos.
4. Contact all the customers you have worked with before. Tell them that you have started your own business and would appreciate the opportunity to work with them again.
5. Emphasize any history or personal connection that you have with clients when talking to them. People feel better choosing the familiar over the new and different.
6. Thank clients for choosing your businesses upon completion of a job. Ask that if they were happy with your work to refer your business to other customers. This is word of mouth marketing and very effective.
7. Consider offering clients an incentive for sending referrals your way. Perhaps a discount on the next job you do for them for each new client they refer.