Networking and Referrals for Franchise Marketing

Networking and referrals are good, cheap marketing
By Karen E. Klein
July 7, 2009

Dear Karen: I need to generate new business on a tiny marketing budget. Any advice?

Answer: Networking, word-of-mouth and referrals are cost-effective techniques that many entrepreneurs overlook.

Great customer service alone will not generate referrals these days, said Court Cunningham, chief executive of Yodle Inc., an online lead-generation firm based in New York.

"Constantly ask for referrals and educate those close to you on how to look for referral opportunities," Cunningham said.

If you're timid about asking directly, start by asking clients to provide testimonials or write reviews of your business online. "If you're proud of what your business is offering, you'll want to help others take advantage of your good service or product," he said.

Also, give service credits or discounts to clients who review or refer you, Cunningham said. "People want to help. They identify with small-business owners and they want the underdog to win."

Once you have established a referral program, send a description of it to all of your satisfied clients. Don't forget to send it to past clients, because it could be a way to rekindle old relationships, he noted.

You can also ask for referrals from companies that perform services that are complementary to yours.

"People like to help friends in related businesses, so long as they're not competitors," he said. "It's a win-win."

It's also helpful to provide clients and colleagues with literature that describes everything you do.

"Make sure there's a leave-behind. We recommend a one-page glossy summary of your services," Cunningham said. "Make sure it lists what areas you serve."

Read More.....www.latimes.com