One of the most common questions I get from clients centers around referrals-how to get more referrals.
That’s not surprising: Referrals are critical to your business, so you’ll want to maximize the number you receive.
To gain some insight, I recently took some time to connect with one of the people I respect most when it comes to IT services sales and marketing: Kendra Lee of KLA Group, a Denver, Colorado firm that offers sales consulting and training services to IT firms to grow their client base.
Over the years, KLA Group has helped hundreds of IT service provides expand their businesses-in part by using referral rewards program.
To set up a good referral rewards program, Kendra told me you’ll need to think about the best way encourage colleagues and clients to send a good referral your way. That will differ from firm to firm, but Kendra offered three comments on common approaches.
1. Paying for referrals with cash.
This isn’t the best choice for a number of reasons, says Kendra-people forget money the quickest, and offering it can create the impression of bribery.
2. Pay for referrals with gifts.
This is a better idea, says Kendra-particularly for your clients’ employees, the people your team works with daily. That’s because a gift keeps you in the recipient’s mind with a memorable experience (such as a nice dinner) or an item used every day (such as a web digital camera for Skype or iPod). Moreover, it can have the same value as cash, but doesn’t have the same negative connotation.
3. Pay for referrals with services.
This may be the best option says Kendra, because your ownership of the service allows you to offer greater value for the money. But there are some no-nos when it comes to paying for referrals with services. Don’t discount a service the client already has and is paying for, such as consulting time or a monthly service fee. Instead, use the opportunity to introduce a new service to an existing client. “Business owners are always looking for things to improve their business,” Kendra says.
Finally, Kendra reminded me to tell you to be sure to follow the gift policies set up by your clients or any other regulatory bodies. In fact, it’s a good idea to have your own gift policy detailed clearly on your web site to increase transparency.
These are great tips, and I thank Kendra for them. But there’s plenty more where they came from: I encourage you to check out Kendra’s web site.

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