Think about the last time you needed to hire someone to provide professional services, or even to fill an open job position. Did you start by asking your family and friends if they knew anyone for the job? We’re betting you probably did! Referrals are a very powerful tool, especially from a trusted source. Getting a recommendation from a real live person is more reassuring to the average consumer than putting blind trust in a marketing campaign.

5. Increased audience

With each new referral source you acquire comes another world of connections, built up over an entire lifetime of interactions. You may think that you are well-known but there are always more people to meet. The more referral partners you have, the more connected your referral web will become, and you will be able to reach more people.

4. Referred leads vs. cold calls

People are more likely to listen to the voice of someone they know and trust, rather than obvious marketing ploys. Trusting the source of the referral adds value to recommendations in that respect, because they are more likely to lead to business than cold calls.

3. Reduced sales expenses

Having referral partners means that you can gain access to these networks without hiring (and paying) a full- or part-time sales force. Your partners will be going about their daily lives as usual, yet when an opportunity to recommend your services presents itself, they can help you out without clocking in as your employee.

2. Attitude is everything

Happy, enthusiastic customers are the best sales force imaginable. Not only have they “been there, done that”, but they are thrilled with the results. This positive attitude can do wonders for you in terms of convincing any prospective clients that might be on the fence about your services. The most satisfied clients may not even need to be asked to refer your business – sometimes they’ll be so pleased with you that they just can’t wait to shout it from the rooftops!

1. The more you give, the more you get

Referrals are a two way street. The more often you recommend companies to people, the more likely it is that you will receive referrals from your recommended companies. These people are making money off your friendly suggestions, and they will want to keep you around and keep you happy so that they continue to make money. This means they are more likely to send potential business your way.