“When a trusted friend tells you about a business, you transfer that trust to this company, even if you’ve never heard of them before,” John Jantsch writes.

Referral Marketing is not a dirty word. I believe it is one of the best ways to build a business is by word of mouth. I love the networking part – meeting new people, learning about them, hearing their stories – but it is not just about attending an event and gathering cards that will build your business; there is a whole lot of effort that goes on in the background. When I started my mortgage brokerage, I had zero clients, yet I’ve been able to build a multimillion-dollar business thanks to Referral Marketing.

The truth is Referral Marketing is a lot of work. As Ivan Minser, the father of modern network says, “Referral Marketing is a marathon, not a sprint.” The key is to remember that you want to generate great business from referrals consistently.

Here are some stats that will make you love network marketing:

• According to Nielsen, people are four times more likely to buy when referred by a friend.
• Again from Nielsen, 92% of respondents trusted referrals from people they knew.
• 84% of business-to-business decision makers start the buying process with a referral.

Now that I’ve got your attention let’s get you started with referral marketing right now by put some quick strategies in place.

1. Know your target market. To get the most out of referral marketing, you need to get specific. What type of customer do you want? What age range? Where do they live? What do they do? Gender? What do they need? The more specific you get, the better results you achieve.
2. Make it easy to say yes! Have a simple offer that allows someone to say yes. An example: the chances of getting an immediate referral for a listing is unlikely, how about offering a complimentary home valuation? This is an easy yes, and you get to add them to your database.
3. Ask your clients. They are your biggest fans! Make it easy and fun to refer you. Put a simple contest to reward the most client referrals or those who refer more than a certain number of people to you. They love you, and everyone loves a contest.

I know these tips seem simple and they are, not everything has to be complicated. Building a business by referral takes time, effort, and consistency. There is so much more that goes on besides attending networking events. These strategies will get you started and if you would like to learn more just reach out!

If you want to network like a pro, sign up for Ignite your Business workshop. Next one is February 22 and 23 in Vancouver.