7 Steps To Develop An Effective Referral Program, step 4

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4.      Using the table below, determine what the average Annual Value and the average Lifetime Value of your clients is. That is, how much on average, does each client spend with you each year and over the course of their “buying lifetime” with you? (Appendix A contains an explanation of each line.)

 

A	Number of clients you currently have
B	Amount of average sale	$
C	Average profit margin of each sales transaction	%
D	Average dollar amount of profit on each transaction (B x C)	$
E	Number of sales per year per client
F	Average annual revenue value of each client (B x E)	$
G	Average annual profit value of each client (D x E)	$
H	Number of years client does business with you
I	Lifetime Revenue Value of each client (F x H)	$
J	Lifetime Profit Value of each client (G x H)	$
K	Number of your clients who would like to receive FREE gifts, special rewards and VIP recognition
L	Percentage of your clients who would be willing to refer others to you and in return receive FREE gifts, special rewards and VIP recognition (K ÷ A x 100)	%
M	If the percentage of your clients in Line “L” refer only _______ clients to you, you will grow your business by (L x number of new clients they refer)	%
N	Number of new clients you will generate (A x L)
O	Total number of clients you will have (A x L + A)
P	Additional annual revenue your business will generate (N x B x E)	$
Q	Additional annual profits your business will generate (N x D x E)	$
R	Total Lifetime Revenue Value (I x O)	$
S	Total Lifetime Profit Value (J x O)	$

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7 Steps To Develop An Effective Referral Program, step 3

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3.      Develop a multi-tiered program based on the number of new clients your referrals generate, and reward your referrers in two ways: immediate gratification and delayed gratification. For instance:

 

Level	New Clients	Reward
Silver	4	Dinner for two, 5% discount on all products and services you sell.
Gold	8	Concert tickets, 10% discount on all products and services you sell.
Platinum	12	Night stay in local resort, 15% discount on all products and services you sell.
Diamond	15	Weekend get-away including flight and hotel, plus 20% discount on all products and services you sell.

 

In this example, the immediate gratification is a one time payoff such as the dinner, concert tickets, the night in a local resort and the weekend get-away.

 

The delayed gratification is an ongoing benefit designed to keep your clients coming back. In our example, it is the discount your clients receive on their purchases.

 

In either case, your imagination is the only limiting factor in determining what you can offer your clients. Just remember to reward them for the NEW CLIENTS you generate… not the number of people they tell to contact you. If they’re going to get some nice rewards, they need to do their fair share of the conversion process.

 

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7 Steps To Develop An Effective Referral Program, step 2

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2.      Let your customers or clients know, both verbally and by showing them, that you appreciate them and their business. Develop a simple script to invite them to refer other people they know to do business with you.

 

How To Develop An Effective Referral-Generating System To Quickly And Easily Grow Your Business, no.3

Begin With The End In Mind

 

 If you know that referrals are gotten with exceptional service and an outstanding experience, then provide that service and those experiences, and referrals from your thrilled customers and clients is almost a given. You’ll find that not only will the number of referrals you generate increase, but so will the loyalty of your current customers and clients, which of course, translates to more immediate profits. When your client base increases, not only do your profits and cash flow increase, but so does the commercial or resale value of your business.

 

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How To Develop An Effective Referral-Generating System To Quickly And Easily Grow Your Business, no.2

Referral Programs Can Be “Zero-Risk”

 

Well crafted referral programs, on the other hand, will only require payment when an actual client is developed. It’s a true “pay-for-results” system, and is totally “Zero-Risk.”

 

When traditional print ads don’t work, common responses from ad salespeople are that the ad has to be run multiple times in order to create top of mind awareness, the ad needs to be larger, it must be placed in a different (more costly) location, or that it needs color… all of which add to the cost of the ad.

 

But well designed referral programs are based on newly acquired clients and not on increased spending. You only pay for results.

 

With traditional advertising, you pay with cash. But with referrals, in many cases, the rewards, incentives or gifts that you “pay” your referrers with can be your own products or services that you either make, produce, or provide yourself, or that you buy at wholesale prices. Of course, the value to the referrer is the retail price of the product or service.

 

As a rule, people will not refer others to a business unless they have received value from the products or services they purchased from the business, or unless they have experienced great service from that business. The more you can do for your customers or clients to give them a WOW! experience, the more likely they are to return to do business with you, and the more likely they are to refer others to you.

 

 

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7 Steps To Develop An Effective Referral Program, step 1

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Here is a simple step-by-step cost-efficient way to increase the size of nearly any business.

 

1.      Provide the very best quality products and the most outstanding service to be found in your market. Do something that either your competition cannot do, or that they are not willing to do. Set yourself apart. Be unique and special. If you can’t differentiate yourself by the products you sell, then differentiate yourself by the service you provide. Create a demand for whatever it is that you offer. When people experience the benefits of an incredible product or outstanding service it is natural that they want to tell others about it. Let it be you that they talk about.

 

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How To Develop An Effective Referral-Generating System To Quickly And Easily Grow Your Business, no.1

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The quickest, easiest, most cost-effective way to grow a business is by installing an effective referral program that rewards your onboard clients for referring others to you.

 

Businesses that rely on traditional commercial advertising are at the mercy of those who sell the advertising time or space, the prices they charge, and the results those ads produce. In this type of advertising the cost of the ad is the same whether it produces one response, ten responses, or a hundred responses; and it costs the same whether it produces one dollar in sales, ten dollars, or a hundred dollars.

 

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Quick Cash Generators That Can Revolutionize Your Business, part 1

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Nearly every business in practically every industry, profession or sector will experience a slowdown at some point. In some cases, the slowdown may be completely unavoidable and beyond the business owner’s control; perhaps changes in the law, economic downturns, or weather factors.

 

In other cases, it may because the business’ ads aren’t pulling the responses they should, a competitor that runs a sale or maybe even lowers his prices on a permanent basis. Perhaps one of the massive “big box” competitors moves into the area and “steals” the business away. It could even be that the business loses its entire direct sales force or telemarketing staff, or any number of other things that no one could predict or prepare for.

 

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Three Secrets to Creating the Ultimate Lifestyle Business and Generating a 6-to 7-Figure Income

STOP: Trying to do the things in your business you have no passion for
STOP: Wearing all the hats in your business
STOP: Doing the things in your business that does not generate profitable income

Once you have re-prioritized the things that do not make you money…WHAT NEXT?

START: Surrounding yourself with a brilliant team that can help grow your business
START: Focusing on doing what YOU do best and what YOU have a passion for
START: Identifying the high-profit areas of your business

Engage these strategies, and your business and income will soar to the “NEXT Level”. It will also give you the FINANCIAL FREEDOM to live an abundant lifestyle that will allow you to do what ever you want…when ever you want…where ever you want. Isn’t that why you started your business in the first place?

 

 

The Evolution of NEXTLevel Business

NEXTLevelBusiness.com

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Jack Kaser, founder & CEO of NEXTLevel Business, began his entrepreneurial journey in 1984 when he started his first company- Kaser Communications Advertising in Dayton, OH. 14-years later in 1998, in an effort to compete in a larger market, Mr. Kaser moved to Cincinnati, OH and started Synergy Group, a marketing & technology company. A decade later, as business and market conditions continued to evolve, NEXTLevel Business was born. What began 24-years ago as an advertising design firm, has evolved into a world-class growth strategy consultancy.

Today, he has joined forces with TopLine Business Solutions in Phoenix, AZ and Prosper Marketing in American Fork, UT. Together the CEO management team has in excess of 100-years professional experience developing solutions for some of the most powerful and respected brands on the planet. Their ideas and strategies are proven over and over! They work for AT& T, Pet Foods, Black and Decker, General Mills, Ralston Purina, Pacific Power & Light, Blue Cross- Blue Shield, Deluxe Check Imprinters, Coca Cola USA, Hewlett Packard, Honeywell, General Mills, IDS/American Express and countless others… and they can work for your business too! So, find yourself a quiet place, get out your pen and notepad, and get ready to learn how to become the overwhelming choice for your prospects and customers to do business with!

In a nutshell, the NEXTLevel team is in business to produce bottom-line profits for their clients. And because they are very good at what they do…results are guaranteed! Throughout their website, you will find useful information that will help you better understand the fastest, easiest, most profitable way to double you business and income.

For serious business owners, visit NEXTLevelBusiness.com or feel free to email Jack Kaser directly at jack@nextlevelbusiness.com. Don’t forget to request an autographed copy of his book, “Business Profits Guaranteed: 7 Steps To Create Customers For Life” absolutely FREE!

TAKE YOUR BUSINESS TO THE NEXT LEVEL TODAY!