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Article Title:
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Three Reasons NOT to Ask for Referrals

Article Description:
====================

When someone asks me what is the one thing they can do to get
more referrals, I almost always say, "ask for them." That's
because most small business owners err on the side of not asking
for referrals. They don't ask because they're afraid to bug
people, they don't want to appear needy, they're not sure what
precisely to say, and so on.


Additional Article Information:
===============================

730 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2007-05-02 10:13:00

Written By:     Judy Murdoch
Copyright:      2007
Contact Email:  mailto:[EMAIL PROTECTED]



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Three Reasons NOT to Ask for Referrals
Copyright (c) 2007 Judy Murdoch
Highly Contagious Marketing
http://www.judymurdoch.com/workbook.htm



When someone asks me what is the one thing they can do to get
more referrals, I almost always say, "ask for them."

That's because most small business owners err on the side of not
asking for referrals. They don't ask because they're afraid to
bug people, they don't want to appear needy, they're not sure
what precisely to say, and so on.

However...

There are times when you should not ask for a referral. In fact
there are times when asking for a referral would be detrimental
to your business.

Is this sacrilege at the alter of small business marketing? Read
on.

Reason #1. Don't ask for a referral until you demonstrate
performance

Several years ago, my husband and I hired a financial planner to
help us manage our investments. About six weeks into the our work
together, we received a letter in the mail from him asking us for
referrals. Although I understood his reason for requesting
referrals, the timing seemed wrong. After all, he hadn't
actually done much for us beyond running a canned investment
analysis.

When would it have been appropriate for him to have asked us?
Because we hired him with the intention of having a long term
relationship, it seems waiting a year so that we could get a
sense of his style and how well he managed our investments would
be the minimum.

It all depends on how long it takes to establish a track record.
For example a hair stylist can easily asked for a referral after
three successful visits. With one visit per month, that's enough
for most clients to trust that the stylist really knows what
they're doing and the great cut they got on their first visit
wasn't just a lucky fluke.

Reason #2. Don't ask for customers you really don't want

Take a moment and think about your clients or customers. Can you
honestly say you enjoy working with most of them? Or do you feel
mostly dread and resentment? If you answered the latter, chances
are you aren't attracting the right customers for your
business.

If you keep getting pain-in-the-butt customers...especially
through referrals, stop. Please. Take some time to think through
and write up an ideal customer definition.

Give your definition to your referral sources and tell them these
are the types of customers for whom you do the best work. When
you do this, your referral sources send only prospects for whom
you will do great work and who will appreciate your work. Those
people will go back to your referral sources and thank for
telling them about you. Your referral sources will feel like rock
stars. It's a win-win for everyone involved.

Reason # 3. Don't ask for referrals if you lack the resources to
do a good job

When people ask about my More Referrals Now program, I always ask
them if they have the time, people, and resources to handle
double the business they have currently. For example, if a
financial planner is currently working with 80 clients can he or
she comfortably handle 160 clients within 6 to 12 months.

This tends to be more of a problem for product-based businesses.
For example, if you sell hand knit caps made by little old ladies
living in  Lithuania (an acquaintance of mine has a company that
does just this), when you sell out, you are sold out until your
get another shipment of hand knit caps. Yes people will wait, to
a point, if your product is very special. But more often,
they'll get annoyed and buy from a competitor.

But service-based businesses need to be careful too. I used to
refer people to a technical services consultant who did really
good work but eventually he got so busy that he stopped returning
phone calls and sometime completely forgot about appointments. I
stopped sending him referrals because no matter how good he was,
the referrals I sent became frustrated because he didn't seem to
want their business and that made me look bad.

Bottom Line

Although not asking for referrals is one the biggest mistakes
most business owners make, asking for a referral at the wrong
time, for the wrong type of customer, or when you're unprepared,
can be every bit as damaging. Make sure your referrals are a
triple win: for you, for your referral sources, and for the
prospects they send you!




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Judy Murdoch helps small business owners create low-cost, 
effective marketing campaigns using word-of-mouth referrals, 
guerrilla marketing activities, and selected strategic alliances.
To download a free copy of the workbook, "Where Does it Hurt? 
Marketing Solutions to the problems that Drive Your Customers 
Crazy!" go to http://www.judymurdoch.com/workbook.htm 
You can contact Judy at 303-475-2015 or [EMAIL PROTECTED]


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