How to build strong networks - 5 proven strategies grow your referrals

‘Life is an echo. What you send out comes back.

What you sow, you reap.  What you give, you get.

What you see in others, exists in you.’

– Zig Ziglar

Most businesses generate the majority of their new business from referrals. Referrals are invaluable because they cost you nothing but can yield substantial returns. The best place to gain new referrals is from the networks of your existing clients or people you already do business with.

So, how can you maximise referrals from your networks? Here are five ideas for you to consider:

1. Understand the Lifetime Value of a New Client

Consider the lifetime value of a new client. For instance, if the average spend per client is $1000 per year, with a retention period of five years, the lifetime value is $5000. With this value in mind, think about what you can offer to show your appreciation for their repeat business. A simple gesture, such as a referral fee, voucher, or a personalised thank you note, can go a long way. Happy clients are more likely to refer your services to others.

2. Partner with complementary businesses

Identify businesses that complement your own. For example, a surveyor might work with lawyers, valuers, bankers, accountants and trades-people. Form an informal group with these professionals and commit to regular social gatherings. Focus on how you can work together more effectively, or simply use the time to build relationships and have fun. Strong professional relationships can lead to more referral opportunities.

3. Embrace the Law of Reciprocity

Focus on referring more work to your networks than you seek in return. When you refer clients to other professionals, it creates a psychological urge in them to reciprocate. This principle, known as the Law of Reciprocity, can result in more generous gestures from your network, such as referring their clients to your services.

4. Join Existing Networking Groups

Find out where your target clients congregate in the greatest numbers. There are existing networks that you can join, such as Business Network International (BNI), or the Chamber of Commerce. These groups are excellent for business owners to connect with potential clients and other professionals who can refer business to you.

5. Get involved with local organisations

Sponsor and get involved with voluntary or non-profit organisations and clubs that you or your team are passionate about. These might include sports clubs or community groups. While participating, wear branded clothing and display signage with your business information. Avoid direct selling; instead, focus on building trust and recognition within the community. Prospective clients need to know, like, and trust you before they will consider using your accounting services.

Take action today!

Which of these five strategies can you implement today? Start maximising your referrals and watch your client base grow. Businesses of all sizes and from all industries can benefit from these referral techniques, driving growth and success in the local community.