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The World’s Best Known Marketing Secret–4th Edition

The World’s Best Known Marketing Secret–4th Edition

The first edition of my book The World’s Best Known Marketing Secret, which details how to build business by referral, was released back in 1994 and went on to become an international bestseller.  I am excited to announce that the 4th edition of the book was just published and my co-author Mike Macedonio and I have substantially rewritten the book and added a significant amount of information.

Here is just a brief sample of what is outlined in the new book:

  • The best way to grow your business
  • Referrals and referral marketing, networking, word of mouth, buzz, and viral marketing
  • Networking vs. direct prospecting
  • Communicating your brand
  • Making your network stronger
  • Fifteen ways to promote
  • Forecasting sales from referrals
  • Tracking and evaluating results
  • And much, much more . . .

If you’ve read any of the other editions of The World’s Best Known Marketing Secret, I invite you to leave a comment here letting me know what some of your top takeaways from the book were; and, of course, if you’ve had the opportunity to read an advance copy of the 4th edition of the book, I would absolutely love it if you would leave a comment about what you think of it!

The new 4th edition is not yet available on Amazon but you can get an advance copy of the book now by CLICKING HERE.

The Referral Process–Steps 1 and 2

Last week, I wrote a blog explaining that referral networking is a system –when it comes to the actions of generating, developing, and closing a business deal through a referral, there is a well defined, systematic process.

The good news is, this process can be broken down into eight easy steps and today I am going to explain steps 1 and 2.

  • Step 1.  Your Source Discovers a Referral

The referral begins with an event that is outside your direct involvement: your referral source uncovers a referral opportunity for you.  This occurs without your direct involvement, but it happens because you have laid the groundwork for it by cultivating a mutually beneficial relationship with the person who is going to be motivated to bring you the referral and by making sure she can inform the prospect about the benefits your business can provide.

  • Step 2.  Research the Referral

Your referral source tells you she has a referral for you.  At this stage, your impulse might be to call the prospect immediately–you know, strike while the iron is hot!  But that would be a mistake.  In fact, it’s the most common mistake people make, and in many cases it’s referral suicide.

Don’t let your excitement cloud your judgment about the opportunity.  As soon as you get the call from your referral source, and before you even think of picking up the phone and calling the prospect, you should start digging to find out everything you can about your prospect and his company.  How old is the company?  What is the prospect’s main line of business?  How successfully does it compete?  What is the company’s market valuation?  What products or services of yours might be of most use or interest to the company?  What is its track record with vendors?  Does it deal fairly and straightforwardly with suppliers and clients?  Is it in good financial condition?  Will you be competing with other vendors for its business?

Can you think of any other questions that would be good to consider when researching a referral in Step 2 of the referral marketing process?  If so, please share it in the comment section.  Also, be sure to check back next week to read about Step 3: Checking Back in with Your Referral Source.

"New Year’s Resolutions and Networking"

A friend of mine, TR Garland (pictured with me in the photo at right), just wrote a great blog entry which contains some very timely information for many people across the globe and I’d like to take the opportunity to share it with you today as a guest blog.  Enjoy . . .

“New Year’s Resolutions and Networking” by TR Garland

In about 30 days, the majority of people around the world are going to be faced with the same thing we’re all faced with once at a certain point every single year.

No, I’m not talking about keeping a smile on your face while spending the holidays with your in-laws (wink-wink).  I’m talking about setting New Year’s Resolutions.

Every year, one of the top resolutions is to “get in shape.”  The truth of the matter is that most of us already know how to get in shape:

1.  Design a nutritional plan and stick to it

2.  Design a workout schedule and stick to it

3.  Track your actions and results daily and recalibrate if needed

The problem is, a large percentage of people don’t reach their goals because:

1.  They don’t write out a formal nutrition plan or workout schedule

2.  They don’t hold themselves accountable

In other words, life gets in their way.

So what can be done about this?  Well, there’s something about human psychology that pushes us to not let someone else down. Because of this, people who invest in a personal trainer to help keep them accountable tend to achieve desired results much more consistently than they ever would by attempting to get in shape on their own.

It’s important to note that this same concept holds true for business networking and referral marketing.

Many people are spending a lot of time networking by just chatting away with others and maybe grabbing others’ business cards.  By doing this, they then expect results; they expect that the people whom they’ve met and exchanged business cards with will eventually pass a referral to them.  This mindset is called being reactive ( . . . and hoping for the best!).  Being reactive is an employee  mindset or mentality that, in my opinion, gets placed into the same category as punch cards, guaranteed smoke breaks, assembly lines, benefits entitlement, and cubicles.  In other words, this mindset is something that isn’t really that viable anymore in today’s economic environment.

If you don’t believe me, look around and note which businesses are thriving and hiring.  I’m confident you’ll discover that the businesses which are doing well are those that do not have a reactive mindset and, instead, maintain an entrepreneurial mindset.

An entrepreneurial mindset is one that takes ownership and focuses on being proactive versus reactive.  Just like the “getting in shape” example above, being proactive and accountable in your business networking and referral marketing efforts is a sure-fire way to get results–plain and simple.

So, especially if you’ll be out attending holiday parties in the coming 30 days with your spouse, significant other, family, or friends, remember to be proactive with your networking efforts.  Go to each event with a purpose (in addition to your goal of having fun).  Don’t simply gather business cards, that’s not what I’m talking about.  Instead, set relevant and realistic networking goals and ask the person you went with to hold you accountable to your goals.

And, of course, there’s a time and a place for everything.  You need to respect the event you’re attending and if the environment doesn’t warrant you achieving certain networking goals . . . grab a celebratory beverage and some festive treats and remember, there’s always next year!

* TR Garland is a Referral Marketing Strategist for the Referral Institute® in Orange County, California where he is a consultant to top performers and entrepreneurs on maximizing their ROI/ROT from business contacts and networking.  Starting in 2011, you can follow TR for his tips, tactics, and techniques on effective networking at his newly launched blog located at www.BeABetterNetworker.com.

 

Finding Your Starting Point

If you have little or no experience with referral marketing, it would be a mistake to jump into action without preparing yourself. Central to the referral-marketing process is getting people to send you referrals. To do so, they must know exactly what you do — what product or service you provide or make, how and under what conditions you provide it, how well you do it and in what ways you are better at what you do than your competitors. You have to communicate this information to your sources. And to communicate effectively, you must know the same things.

It may seem a no-brainer; don’t we all know what we do for a living? Yes, of course, most of us do. But can you communicate it clearly and simply to your potential sources? When you try to do so, you may find that you’re not quite as clear on the facts as you thought. And if you can’t tell your potential sources what you do or what you sell, how can they send you good referrals?

Before you map out where you’re going to take your business with your referral-marketing campaign, pause and get a clear picture of where your business stands today. Try to answer, in simple terms, the following questions:

  • Why are you in business?
  • What do you sell?
  • Who are your customers?
  • How well do you compete?

Answering these questions for yourself will help you tell others what your business is about. This will make you more effective at implementing your comprehensive and systematic referral system.

What’s the Payoff for Developing an Effective Word-of-Mouth Strategy?

Developing an effective word-of-mouth strategy that results in a strong referral-based business takes endless time, energy, effort and, above all, commitment. The actions and steps necessary to create a successful referral-networking campaign are simple, yet far from easy; they take tremendous dedication and drive, and results can be a long time in coming.

So why should you put forth the time and effort to develop a word-of-mouth strategy for your business?  Because, if you commit to doing it right and don’t give up, the payoff can be unbelievably high.

In fact, many businesses have become so adept at referral marketing that they get most of their sales through referrals and spend little or no money on advertising — and they never have to place cold calls. Some of these businesses hire most of their employees through referrals, manage complex financing arrangements and even procure necessary products through referral contacts they have cultivated for many years.

But a referral-based business can reward you in ways beyond those measured in dollars. Dealing with people you like and trust is a better way to live and work than sparring with strangers all day long. You may even find the relationships you form with your referral sources more important than the dollars your new customers bring you. Such relationships are central to both the referral-generation process and the satisfaction you derive from your work.

So, the next time you find yourself doubting whether your networking efforts are really worth it, remember: If you don’t give up, and you continually devote yourself to working on making your word-of-mouth strategy better and better, the payoff can be enormous both financially and in terms of happiness in business and life.

How Soon Should You Expect Profitability from a Relationship?

Over the past couple of weeks, I’ve written a few blogs on the VCP Process® of networking and, since I’ve already covered visibility and credibility in detail, today I’m going to tell you what you need to know about profitability, the third and final phase of the VCP Process.

The mature relationship, whether business or personal, can be defined in terms of its profitability. Is it mutually rewarding? Do both partners gain satisfaction from it? Does it maintain itself by providing benefits to both? If it doesn’t profit both partners to keep it going, it probably will not endure.

The best piece of advice I can give you in regard to when to expect to get to profitability is to be patient. The time it takes to pass through the phases of a developing relationship is highly variable.  It’s not always easy to determine when profitability has been achieved: A week? A month? A year? In a time of urgent need, you and a client may proceed from visibility to credibility overnight. The same is true of profitability; it may happen quickly or it may take years, but most likely it will be somewhere in between. It will depend on the frequency and quality of the contacts and especially on the desire of both parties to move the relationship forward.

Shortsightedness can impede the full development of the relationship. Perhaps you’re a customer who has done business with a certain vendor off and on for several months, but to save pennies you keep hunting around for the lowest price, ignoring the value this vendor provides in terms of service, hours, goodwill and reliability. Are you really profiting from the relationship, or are you stunting its growth?  Perhaps if you gave this vendor all your business, you could work out terms that would benefit both of you.  Profitability is not found by bargain hunting. It must be cultivated. And, like farming, it takes patience.

Visibility and credibility are important in the relationship-building stages of the referral-marketing process.  But when you have established an effective referral generation system, you will have entered the profitability stage of your relationships with many people–the people who send you referrals and the customers you recruit as a result. It’s an essential part of successful relationship marketing and networking.

What is the VCP Process?

The key concept in referral marketing is relationships. The system of information, support and referrals that you assemble will be based on your relationships with other individuals and businesses. Referral marketing works because these relationships work both ways: They benefit both parties.

A referral marketing plan involves relationships of many different kinds. Among the most important are those with your referral sources, with prospects these referral sources bring you and with customers you recruit from the prospects. These relationships don’t just spring up full-grown; they must be nurtured. As they grow, fed by mutual trust and shared benefits, they evolve through three phases: visibility, credibility and profitability. We call this evolution the VCP Process(R)

Any successful relationship, whether a personal or a business relationship, is unique to every pair of individuals, and it evolves over time. It starts out tentative, fragile, full of unfulfilled possibilities and expectations. It grows stronger with experience and familiarity. It matures into trust and commitment. The VCP Process describes the process of creation, growth and strengthening of business, professional and personal relationships; it is useful for assessing the status of a relationship and where it fits in the process of getting referrals. It can be used to nurture the growth of an effective and rewarding relationship with a prospective friend, client, co-worker, vendor, colleague or family member. When fully realized, such a relationship is mutually rewarding and, thus, self-perpetuating.

This simple concept has made a bigger difference in more people’s networking efforts than any other single idea I’ve discussed. For this reason, I’m going to devote the next few blogs I write to explaining each step of the VCP Process individually. Come back on Monday to learn why it all starts with visibility . . . I guarantee you you’ll want to read this one!

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