Ask for Referrals Without Really Asking
Ask without asking? “Just about every course or book that deals with referrals teaches you one single method… ‘asking’ for referrals.”David Frey, President of Marketing Best Practices Inc., goes on to say, “…there’s a HUGE problem with this approach. People HATE to ask for referrals. You hate it, I hate it…”Mr. Frey also says, “Asking for referrals is right up there with asking your friend to come to church with you on Sunday. It’s downright uncomfortable.”Although many of us might agree with Mr. Frey, he obviously didn’t read the first article in this newsletter. Nevertheless, if you don’t like to ask for referrals, that’s OK. There is a way to ask… without actually asking. Keep reading and I’ll teach you how.
The Automatic Referral
You build the automatic referral right into your workflow.A system is a process that has a predictable result because it happens the same way every time. The automatic referral needs to be systematic and transactional, not relational. In other words,the referral is created as a part of the transaction, not by your relationship to your client.It’s easy to build your referral system into your transaction. It could be as easy as a coupon on the back of your statement or invoice. Thank them for the order and at the same time ask for a referral. “I sure appreciate your business. For every client you refer to my office, I’d like to give you a dinner for two at [name of restaurant here].”Of course you don’t have to use dinner at a restaurant as the reward for a referral. It could be cash, a credit on their next order, anything that might entice them to refer you to a friend. I’ve seen a $5 gift certificate to Chili’s Restaurant bring bank managers out of their offices to sign up new checking accounts. When was the last time you saw a bank manager stop what he was doing to order new checks? These kinds of incentives really work. And if you make it part of the transaction, it’s easy.
How Much Is a New Client Worth?
How much are you willing to spend to get a new paying client? Determine how much they’re worth and how much you’re willing to pay, and come up with some kind of offer that your clients can’t refuse.To show you what I mean, let’s take a look at some of what we’ve discovered over the years at Universal Accounting. The average bookkeeping client is worth $300 in monthly billing each and every month. Over the course of the next two years, you’ll find that a single customer is worth $7200.The graph below will show you how valuable each client will become in a very short time.
I think that’s worth a dinner or two for a client who gives you referrals… don’t you? Now, let’s make this even more interesting. Let’s look at this scenario and include doing their taxes along with their bookkeeping.
Over the years we’ve discovered that the average business client who adds tax planning and preparation to bookkeeping services increases that $300 per month to $400 per month. Over the course of the same two years, that client is now worth $9600! At this point, a referral is worth a lot of money to your bookkeeping and tax practice.Making the referral process a regular part of how you do business, gives your clients an incentive to give you a referral, and you’ll watch the referrals pour in.
“Automatic” Referrals Without Asking… What Could Be Better?
It really does get better. Referrals are only part of creating a successful bookkeeping and tax business. You’ll also learn everything you’ll need to know to do the books for any small business.There’s never been a better time to become a professional bookkeeper and accountant. You won’t find a better place to begin than with Universal Accounting. Be prepared with all the educational tools you need to learn small business bookkeeping and accounting and all the marketing education you’ll need to have a successful business. Simply click on the link below and learn how to start your successful and profitable practice today.Show Me How Achievable, Profitable and Easy a Professional Bookkeeping Business Can Be