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How to Lay the Groundwork for a Referral Based Business

By Sydni Craig-Hart

referralsHow much more profitable would your business be if the majority of your clients came from referrals?

How would your life be different?

Would you spend less time on prospecting? Receive more qualified leads? Grow your business faster and easier? There are multiple benefits.

Now, what are you doing each day to create that reality?

Whether or not you enjoy those results depends entirely on you. You can’t just sit back and expect others to refer business to you because you are a really nice person. (Though I’m quite sure you are!) You actually have to take action consistently in order to get the results you want.

Here are six ways that you can create a referral magnet in your business:

  • Create a “red carpet” experience for your clients – Send a welcome gift to thank them for their new business. Acknowledge special days like business anniversaries. Have a client concierge they can turn to for whatever they need or use a help desk option to ensure that they are taken care of every step of the way. Look for opportunities to wow them and make them feel special.
  • If you make a mistake, own it and fix it – It’s inevitable that you will make a mistake. You’re only human and it happens to the best of us. When it happens, don’t make excuses. Don’t blame. Just fix it. This will speak volumes to your integrity and remind your client that your focus really is to serve their needs.
  • Be a resource  – Know what other resources your clients need and have options available for them. For example, I know my clients will at some point need a copywriter, a graphic designer, a virtual assistant and other related services. So I have these professionals on “speed dial” and can easily refer my clients to the support they need.
  • Over deliver at EVERY opportunity – Give a surprise gift or an unexpected bonus. Stay on the phone for an extra 5 minutes to answer their questions. Work to create value for them and truly be of service. You’ll be more memorable, more valuable and worthy of a referral.
  • Explain who your ideal client is and why – Tell them why they are an ideal client for you and what to look for in others. Tell them exactly how to introduce others in their network to your services. When you give them the keys to look for and teach them how to refer your services, it will be easier for them to do so and they’ll be more likely to make referrals.
  • Piggyback on their praise – The best time to ask for a referral is when a client is raving about you. Graciously thank them for the feedback and simply ask, “Who else do you know that is looking for XYZ results.” Striking while the iron is hot is a great way to attract new pre-qualified leads to your business.

When you implement these principles in your business, you’re going to see an influx of referrals coming your way. How do I know? Because it happens in my business. 19% of my clients over the past 18 months came from referrals.

Deliver the same top quality customer service, extra perks and quality solutions and you’ll see referral after referral coming your way.

Which of these tips will you implement in your business first? Post your thoughts below. Simply committing your idea to “paper” will inspire you to take action!

Filed Under: Attract Perfect Clients, Business Management Tagged With: building smart relationships, Connect with Ideal Clients, Referral Based Business, Smart Simple Marketing, Sydni Craig-Hart



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Sydni Craig-Hart

Is your organization looking to gain market share and deepen loyalty with small businesses, women or minorities? Sydni Craig-Hart is CEO of Smart Simple Marketing and a 4th generation entrepreneur. Since 2006, her team, having worked with over 8,000 small business in 79 different industries, has been helping companies to drive engagement with sought-after, growing market segments. If you want to increase the value of existing-customer spend, recapture marketing investments, grow customer lifetime value or decrease attrition, contact Sydni to discover how her team is doing this for companies like Facebook, Google, LinkedIn and more.

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Comments

  1. Fernando Sevillano says

    October 15, 2011 at 7:40 AM

    I have to improve business anniversaries and explaining to clients how to refer the ideal client. I would always ask if they know of anyone who’s looking & to be sure to give them my contact info.

    • Sydni Craig-Hart says

      October 16, 2011 at 10:08 AM

      Glad you discovered a new way to look at this Fernando! Another great way to ask the question is “Who else do you know that is struggling with [THE PROBLEM YOU SOLVE] and looking for [THE SOLUTION YOU PROVIDE]? That way it gets them thinking about specific individuals and not just “keeping you in mind”.
      🙂

  2. Adams says

    October 15, 2011 at 8:15 AM

    Right said that the best time to ask for a referral is when a client is raving about you. Great source of help for the newbies like.

    • Sydni Craig-Hart says

      October 16, 2011 at 10:07 AM

      Thanks for the note Chris! I agree…what great insight for a new business owner. Imagine how much more successful a business can become when the owner implements this practice from the beginning! Still, whether you’ve been in business for 5 minutes or 15 years, NOW is always a great time to improve. 🙂

  3. Miriam says

    October 19, 2011 at 10:02 PM

    Hi Sydni,

    Great post in general, and I’m wondering how specifically I could apply this to my practice as a counselor. The “piggyback on their praise” is definitely something I do, but the rest of these ideas seem out of bounds for counselors in terms of professional ethics and legal constraints. I know you’ve worked with other counselors, so I wonder what you recommend.

  4. Cathy Alessandra says

    October 21, 2011 at 1:13 PM

    These are great tips to remember for every day business – not just referrals! Red carpet experience, fix it and over deliver! Excellent – thanks for the reminders!

  5. Brenda Stanton says

    October 24, 2011 at 5:00 AM

    Great tips Syndi! I love the concept of rolling out the red carpet for clients. It truly is all about value and being a tremendous resoruce for our clients – that’s what we’re there for! Thanks for the tips…

  6. Amy Kinnaird says

    October 24, 2011 at 6:15 AM

    Sydni – you are right on the money in that we should explain to our clients how to make a referral for us. We need to keep in mind that a happy person would love to refer us, but often it doesn’t cross their mind to do it, or they don’t really know the best way to do it.

    A happy client may or may not be an ideal target client, so they need to be aware what to look for in someone else that would be just perfect for us!

    Thanks for a great thought!

  7. Jennifer Bourn says

    October 28, 2011 at 10:00 AM

    Awesome post! I love the fact that you make it so simple! My business is completely based on referrals and each point you have outlined in this post I have implemented and it works!

  8. Aisheteru says

    November 9, 2011 at 3:53 AM

    Wow Stdbuyou share some great tips here about meetups. I am going to book mark this site to come back to and thanks for your insight.

  9. Kristi LeGue says

    November 9, 2011 at 4:29 PM

    I think my favorite tip is the one about mistakes. Having my own CPA practice for seven years really humbled me. As a CPA people really do expect perfection out of you and honestly, I expect it out of myself. But, as you mentioned, we are human and it is inevitable that we will make mistakes. When it happened I was the first one to own it and go out of my way to fix it. I think that is lacking in today’s society.

    I also loved your point about being a resource. Like you, I made numerous connections through my business and personal lives. I loved the feeling of being a networking hero. 🙂

  10. RachelAng34 says

    November 25, 2011 at 5:05 AM

    i love your post, you made a great point of view. i truly appreciate that you shared a brilliant information for us.

    • Sydni Craig-Hart says

      December 13, 2011 at 12:06 PM

      It’s my pleasure Rachel! What do you plan to implement first?

  11. Melodie says

    December 15, 2011 at 5:06 PM

    If you see it precisely, all you need to do is become a little more professional. Doing the right things at the right time will definitely get you loads of projects through referrals and you will become a very successful freelancer.

Trackbacks

  1. The Business of Referrals | montyrainey says:
    January 13, 2012 at 8:36 AM

    […] How to Lay the Groundwork for a Referral Based Business (smartsimplemarketing.com) […]

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