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Reaching out to one referral partner is so much better than reaching out to one client. They are the ones who market and refer you to other networks; this is done usually in the form of a partnership, as they are receiving something from you in return, such as compensation.
However, whatever cost you incur from your referral partner, it can translate to significant benefits for your company. Here are some of the benefits of working with them:
Faster and More Cost Efficient
Working with referral partners is a faster way for you to reach your target market or to build a bigger network of customers. You only have to deal with one partner at a time, and this partner does all the work of referring you to other potential clients and closing the final sales agreement.
Further, the cost is less than other means of marketing or networking, as the compensation you pay to them is pro-rated: you only pay every time they make a successful referral with another client. With this, the compensation expense is not a fixed expense.
You Don’t Have to Search for Prospects Yourself
Searching for new customers to reach out to is one of the hardest parts of marketing. Often, you don’t know where to start. With referral marketing, you’ll no longer have to do this. All you have to do is give them the scope of the target market and the number of people you want to reach.
Your Company Becomes Valuable to Your Clients
Their job doesn’t end with just referring you to future potential clients or the market that you want to reach. In the process, your company also becomes more valuable, because they’re taking care of your reputation by selling your brand to customers, including information regarding trustworthiness, success rates in the industry, and number of previously satisfied consumers.
They can even offer special discounts, based on your referral partnership agreement on discounts and commissions.
Give Jobs to Others
When you search for your clients yourself, you’re doing all the work in the company, but when you ask a referral partner to do the job for you, you can outsource the work and employ others. It’s worth it to remember that when you’re in business, you’re not only thinking of the success for your own company, but you also have a social responsibility to others by providing more jobs.
When you outsource a referral partner, you can offer appointments to a broader scope of locations, rather than just being limited to your area.
Find More Clients Who Will Immediately Say “Yes”
Referral partners don’t just find potential clients within your scope, but they also look for those who have higher chances of saying “yes”; meaning, they search for prospects that need your products. In that way, they can screen potential customers before leading them to you, so you can maximize your time, rather than wasting it on others who might not be interested.
Meet With Your Clients
Because it’s your referral partner who looks for potential clients for you, they’re also the ones who will meet with them before you do. More often than not, you meet with these clients when they’re convinced to purchase your products, or resell them, rather than when they’re still in the inquiry process. It’s your referral partner that does this work for you. Therefore, you can dedicate your time to the essential part of your business — making the deal and closing the sale.
Build Brand Awareness
Word of mouth is always one of the most effective marketing strategies. People find it more believable when the news about a particular product comes from another client who has previously used that product.
When customers refer you, you’ll gain new customers, and these new clients also have the potential to refer you to other new customers. Through this means, more and more people will hear about your brand and buy it. As a result, you can slowly establish your name and niche in your industry.
With all these benefits in mind, many marketing experts suggest that you work on your referral partnerships, or add one referral partner at least once a week. Following this plan and schedule will help you achieve your company’s business goals by increasing your current network, thus also increasing sales.