Earn Referrals & Customers with Network-Based Marketing

Businesses that run on referrals are less expensive to grow. They also don’t spend a ton of time on business development.

Any new business can grow like this, it’s just a matter of knowing how to earn referrals. Referrals are customers, members, or anyone who otherwise buys what you’re selling thanks to someone in your personal or professional network.

There’s no mystical practice behind earning referrals. The fastest way to do it is to engage your personal network in order to grow your business. It’s called network-based marketing.

Very simply put, network-based marketing is “spreading the word.”

Network-based marketing underscores a fundamental truth that anyone who's new to business needs to know: The most important thing that any new business operator can do is to be it’s most vocal proponent, telling their own personal and professional networks about their new business.

No joke. Simple as that. Telling people about your business is the best way to grow it. Whether you're starting a raw high vegan webzine, a skate-shop-slash-art-gallery, a disco-themed alpaca farm, or launching a new socially conscious grass-roots investment platform, you need to tell your network - your friends and family and coworkers, and others about it. 

Yes, it’s okay (and entirely normal) to be uncomfortable reaching out to tell folks about your new business. No one wants to feel vulnerable, or ask for help, or seek support. Few people would want to be perceived as needing those things.

But we’re not asking for help! We don’t want help or support. We’re playing a different game all together.

Again, network-based marketing is simply “spreading the word.” That is, indeed, all we’ll be doing. We can do that with casual, calm, confidence.

And so, with a simple shift in our perspective, this is just another wonderful way that we can find comfort in being uncomfortable. Enduring discomfort will develop the results we seek and it will affect the personal growth we need to undergo.

Here’s how you can easily activate your personal and professional networks to grow your business through network-based marketing:

  1. Make a list of your personal and professional contacts. 

    1. Pull a contact list from your email tool, your contacts list in your phone, or export contacts from social networking sites to help you get started.

      1. If you export contacts from social networking sites, be aware of the network’s terms of use because many sites forbid users to build such a list exclusively for marketing purposes. We oppose using a list like these for that purpose. In this case, we’re only using it to list contacts. As you’ll see below, outreach takes place one by one. Don’t spam your friends, friends!

  2. Move the contact list into a spreadsheet. Yay!! Spreadsheets!! No, you shut up. Spreadsheets are an easy way to manage simple lists like this.

    1. Include names, email addresses, and phone numbers if you have them

      1. Include titles, current employers, and other data points if you want to get nerdy

  3. Sort the list into 1’s, 2’s, and 3’s by reviewing each member of the list and assigning them a number as follows:

    1. 1’s are your friends. Warm contacts who know you. These are best friends, regular friends, work friends, family friends, friends of friends, and anyone else who you’d genuinely want to spend time with. (Yes, even if spending time with people is hard for you.) Generally, you should be comfortable sharing feelings with 1’s. 

    2. 2’s are your allies. People with whom you’ve toiled in the cubicle mines, your comrades, your co-sufferers and co-creatives. These are also going to be the people who’ve impressed you at work, people you’ve grown with, collaborated with, or directly produced and created with on teams and projects. People who know you’re worth your salt.

    3. 3’s are potential supporters. Members of far distant teams, or short-lived projects, or temporary corporate or casual acquaintances who made an impact on you, who inspire a memory, or who have a place in the shaping of the personal or professional you. Lots of “or” in the 3’s. It’s okay if your list of 3’s is long. It only means you’ve probably shaken many hands. Engage as many or as few 3’s as you like. No pressure here, just spreading the word.

  4. Catch up with your 1’s. With your priorities sorted, it’s time to reach out, make plans to meet, or to find time for a chat. They will be happy to hear from you!

    In your outreach, just focus on making time to catch up.  Don’t immediately focus on your new project. When it’s time to catch up, have a conversation.

    Here are some instructions for those of you who have trouble with conversations:

      1. Ask them how they’ve been

      2. Listen to what they tell you

      3. Respond earnestly, enquiring further if you wish

      4. Let them ask how you’ve been

      5. Tell them how you’ve been and what you’re up to

        1. Be as candid and open with them in your response as you wish since you should be comfortable sharing feelings with 1’s

        2. As part of this response, you will inevitably tell them about your new project 

      6. There will be true authenticity in your presentation of it and it will not feel uncomfortable.

    All of your 1’s will all be excited for you! They will imagine how they can help you. They will refer others to you

  5. Reconnect with your 2’s. Send a simple email or text message inviting them to chat with you.

    In your outreach, begin with an update about what’s going on in your life, and include news of your new business in the message. Share your excitement with them.

    A message like this would do:

      1. “I was thinking about the time when you helped/inspired/guided/advised/impressed/surprised me when [X occurred when we worked together at Y], and today I want to tell you about a cool new project I’m working on…” 

    Because “X” will have occurred when you worked with your friend at “Y”, and if they truly helped/inspired/guided/advised/impressed/surprised you, there will be true authenticity in your presentation of it and it will not feel uncomfortable for you to make the outreach.

    Many of these people will be your “work friends.” Work friends are real friends.  They do remember you. They may even miss you. They will be surprised and delighted to hear from you.

    Many of them will be excited for you! They will imagine how they can help you. They will refer others to you!

  6. Show your 3’s they matter to you. As you have with your 1’s and 2’s, reach out to your 3’s with an earnest note about how they affected you personally or professionally (if they didn’t, they’re not a 3). Let them know about your new project, and, if they’ve been part of your brainspace as you spun up your new project, tell them so. 

    Your 3’s might be taken by surprise that you’d reach out. They might be delighted. You might never hear back from them. Regardless, if they read your note, they’ll feel proud and good. People always remember when you make them feel good.  Try not to miss a chance to make someone feel good.

    Some of them will be excited for you! They will imagine how they can help you. They will refer others to you!

  7. Let your networking work. Now that you've introduced your new project to people who know you trust you and remember you you will live in the forefront of their minds.

    Note the date of your outreach to each contact.

    Do some follow up a week or so later

    Make a point of following up with 1’s and 2’s in order to make certain that you get to spend with them, whether in person, over the phone, or online. Thank them for their time and support.

    Wait as long as it takes to hear back from your threes, but don't hesitate to send a quick nudge a couple weeks after your initial send. They’re 3’s so you're probably not going to be a priority in their inbox. 

    Don’t bother a 3. Instead, spend time engaging other 3’s.

  8. Make some new contacts. Don't just collect business cards. Have genuine conversations, find common ground, and offer help where you can.

    Don't just collect business cards. Have genuine conversations, find common ground, and offer help where you can.

    Leverage online platforms, attend industry events, identify ideal connections, and focus on building new relationships.

Two more essential tips for network-based marketing:

  1. We recommend against using automations, bots, or other tools to send messages to 1’s, 2’s or 3’s. Doing so will immediately negate any authenticity you intended to express.

  2. Ask for referrals in your emails, phone calls, and client interactions. It’s as simple as adding any of the following statements to your message, regardless of format:

    1. "Know anyone else who could benefit from our services?"

    2. "This is exactly the work we love to do, and we’re always open to referrals.”

    3. "Who else might need our solutions?"

    4. "Can you introduce me to interested businesses?"

    5. "Is there anyone else in your network who needs [services like yours]?"

    6. Or, the ever popular, “We appreciate your referrals.”

That’s how we did it. It’s how we teach our clients to do it. 

Your personal network is made up of friends, acquaintances, coworkers, past leaders, peers, subordinates and otherwise unassociated officemates, and anyone else with whom you have maintained a relationship for any meaningful amount of time. Some of us make fast friends, and so have broad networks of friends. Some of us are more cautious, and may look exclusively to professional networks for the connections that they need to make.

Regardless of the depth or breadth of yours know that you can Embrace network-based marketing to grow your business affordably.

 If you'd like some help making it happen we are always around to lend a hand. Get Growing.

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