eferral marketing is probably the most cost effective strategy to generate new business. There are numerous tools and strategies that you can use to encourage your clients or customers to give you a ton of referrals. But before you start implementing your referral marketing strategies you need to ask yourself if you and your business are worthy of being referred.

Just how good is your product or service? How responsive are you to issues and concerns of your customers? Do you keep your promises? Do you under promise and over deliver?

If you can answer these questions with positive responses then you are worthy of getting referrals and it’s time to get proactive about generating even more referrals than you are currently receiving.

What types of clients are you are creating?

1. Unhappy customers – those that get less than you promised.
2. Satisfied clients – those that get exactly what they expect.

3. Happy customers – those who get more than they expected.

The third type of client/customer is the ones you should be striving to create.

If you want to generate a constant flood of referrals you need to do everything within you power to move your current client/customer base from satisfied customers to, long-term happy clients who are more than happy to refer you to their friends, family members and co-workers.

According to Dan Sullivan, founder of The Strategic Coach Inc, there are 4 habits that you should adopt to make yourself more referable:

1) Show up on time.

2) Finish what you start.

3) Do what you say you’re going to do.

4) Say ‘please’ and ‘thank you’

Six Referral Ideas

1. Develop a referral network – this should include your current clients, past client and people who are in a position to recommend your services (sphere of influence). Educate them on the kind of referrals you are looking for, then ASK for REFERRALS.

2. Offer a reward for referrals – you need to thank and reward those who refer you. Go out of your way to show appreciation for the referrals you receive.

3. Educate your clients/customers with free tips sheets, consumer guides and white papers, CD’s/DVD’s

4. Share testimonials, case studies and other evidence of how your clients/customers benefited from using your product/service.

5. In your database identify and track the clients that give you the most referrals. These people could be a key to your business growth. They can become like an unpaid sales force.

6. Have a referral contest – enter the names of those who give you referrals in a draw to win a special prize of some kind. Who you have a draw once a month or every 3 months.