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HE CLIENTS THAT REFERRED THEIR FRIENDS! Big mistake...because here is what could have happened...

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I know you are a polite person...and probably say thank you to most of your clients.

But that is not what I am talking about here...

I am talking about saying thank you to the people who refer you new customers!

I mean...referrals are easier to deal with than a brand new customer right? Customers who have been referred to you by someone else already are "pre-sold" by the recommendation made from the referrer.

So why is it that I see way too many business owners take referrals for granted?

You read that right. Too many business owners take referrals for granted. Please allow me to paint you two scenarios, simplified for this post:

1) The typical referral sale. In this scenario we will use a real estate office. One of the real estate agents is an absolute superstar, and finishes showing and selling a home to new clients. After completing the purchase of a new home...the clients are excited. They have just made their dreams come true...and they want to refer one of their friends to their "new best friend" in the real estate business.

Here is where it gets plain ugly...the referred parties come into the office of the real estate agent and complete a home purchase of their own. The real estate agent continues on his/her daily business. This happens daily in almost EVERY business in the USA! One thing wrong...

THE AGENT DID NOT THANK THE CLIENTS THAT REFERRED THEIR FRIENDS! Big mistake...because here is what could have happened...

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omeone else already are "pre-sold" by the recommendation made from the referrer.

So why is it that I see way too many business owners take referrals for granted?

You read that right. Too many business owners take referrals for granted. Please allow me to paint you two scenarios, simplified for this post:

THE AGENT DID NOT THANK THE CLIENTS THAT REFERRED THEIR FRIENDS! Big mistake...because here is what could have happened...

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ale. In this scenario we will use a real estate office. One of the real estate agents is an absolute superstar, and finishes showing and selling a home to new clients. After completing the purchase of a new home...the clients are excited. They have just made their dreams come true...and they want to refer one of their friends to their "new best friend" in the real estate business.

THE AGENT DID NOT THANK THE CLIENTS THAT REFERRED THEIR FRIENDS! Big mistake...because here is what could have happened...

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end" in the real estate business.

THE AGENT DID NOT THANK THE CLIENTS THAT REFERRED THEIR FRIENDS! Big mistake...because here is what could have happened...

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Why do we have managers? I asked this question on a recent seminar and got into an intense argument with one of the attendees who was a large employer! I like to mix it a little and what fun it was to ask an employer to justify the existence of his managers:Vernon: Why do you have managers? Employer: To manage Vernon:HE CLIENTS THAT REFERRED THEIR FRIENDS! Big mistake...because here is what could have happened...

2) The "supposed to happen" referral sale. Let's use the same scenario in #1, but with one exception, the agent sends a thank you card and a gift of some type to the original referring client, thanking that client for making the referral. The important part here is to make acknowledgment, it is not in the size of the gift. The acknowledgement MUST be heartfelt though, or it will go unnoticed.

Continuing our second scenario...

The original client refers ANOTHER client because this client feels appreciated. It snowballs from there:

Client

refers

Client Client

refers refers

Client Client Client

refers refers refers

Client Client Client Client

refers refers refers refers

Client Client Client Client Client...

Do you get the picture? And all this costs is a heartfelt "THANK YOU" each time you receive a referral from a client. Cultivating referrals is the best marketing for any business...period!

Now I am going to challenge you:

Implement a policy TODAY in your business that requires a thank you be sent to every person that refers another to your business. Whether the "sale" is made or not. Your bottom line will thank you...and your marketing budget could be severly reduced.

Thanks for reading.

Sometimes it is the little things that can produce BIG results in our businesses.

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Many frustrated physicians are abandoning their practices for other careers. This article shows why physicians should consider medical writing as a new career path.

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