See the rest of the series: Part 1, Part 2, Part 3, Part 4, Part 5, Part 6

Over the next few weeks I want to go over with you the 6 parts of a referral based business. Statistics vary, but an amazing 65% to 90% of all businesses survive on referrals as the main source of finding new customers.

If each part is weighted evenly, (which is totally not typical) then each of the 6 parts of a referral based business represent 16.6% of your possible referrals. From my experience, businesses only use 2 of the 6 parts necessary. For those number jocks out there that's means you're only working about 33% of the referral sources available to you. And you're leaving the other 66% alone, untapped. It's like having a Ferrari in your driveway and driving the beater instead.

Now who in their right mind buys a Ferrari and leaves it parked in their driveway? Not me. I'm gunna drive it and let the g-forces push me back so far into the seat they'll need a spatula to get me out.

With that sort of analogy I guess I could have compared this to shifting the gears in your car...

Part 1 – Your Referral Strategy Plan

This first step is a little marketing 101. But if you skip it... it's like not building a foundation to your house. In other words – immensely stupid.

Everyone needs a plan. If you aren't purposeful in what makes you successful, eventually you or your employees will drop the ball. Eventually something will slip up and you'll get not just one, but many dissatisfied clients.

Building a referral based business requires purposeful action. It's like a football team. No matter what all-star great players you have your team members need to be playing out of the same play book. If you're not – there's no way you're getting to the Superbowl.

• Here are some things to think about:
• How do you plan on building referrals?
• How do you plan on receiving referrals?
• Who is your ideal client?
• Where do your best leads come from?
• How can you generate more of those “best leads”?
• How many leads do you need to generate?
• How many leads become paying clients?
• How much does it cost to acquire a new client?
• How much does each client pay you?
• Is all your staff marketing minded?
• Can you and all your staff easily relate your USP? Your core difference?
• Is it proper to reward a referral source? (or, HOW can you reward a referral source?)

These are the types of questions you need to ask yourself. I'm sure as you read the rest of this series creating a plan will become more clear to you... but the first thing you should know is that you need a plan.

Skip this step at your own peril.

By the way... If you want I can help you create a marketing plan for your business, even if you don't live in the 4 Corners area. Just contact me. My 60 minute marketing plan is intended to outline the necessary points in your marketing plan. It takes less than an hour and we can even complete it over the phone. If you don't have an existing marketing plan, it's a great place to start. For those of you who want more detailed information, I offer a more extensive Marketing plan on request... but it takes a little more time and research.

See the rest of the series: Part 1, Part 2, Part 3, Part 4, Part 5, Part 6

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