Referrals can be an incredibly powerful way of building your business, as they serve as a form of endorsement that is often seen as more trustworthy than standard advertising—not to mention much cheaper.

This type of third-party marketing does not necessarily have to cost you anything, but it does require you to build meaningful relationships with key networked individuals and businesses over time.

Let’s take a look at how you can build these relationships so that you can approach them for referrals when the time is right.

Building Relationships With Potential Referrers

Referrals are built on relationships. This means you need to establish trust and mutual respect with your potential referrers.

The first step is to identify the right kind of referrers, as not everyone will be a good fit. You want to look for individuals who share your professional values, understand your industry and work with the kinds of clients you are seeking. They need to be respected enough that, when they refer your business, people will trust their recommendation.

Relationships are also built on a quid pro quo basis, so it is important to provide value by offering your expertise or introducing them to connections that might help their business as well.

You don’t necessarily have to give away much of your time or services for free, but a little goodwill can go a long way and make them more inclined to return the favour.

You also need to ensure that you maintain regular contact without being overbearing. Good relationships can dry up if you don’t touch base from time to time. That being said, it is important that you don’t only reach out to them when you need something.

How to Ask for a Referral

Assuming you have managed to build some good relationships with key networks, the time will come when asking for a referral will feel like a natural extension of the relationship. If it feels awkward to ask, it’s probably because the relationship hasn’t been established well enough yet.

It is important to be specific about what you need when requesting referrals, outlining the kinds of clients you’re looking for and the types of services and products you provide. This makes it easier for them to connect you with people who might be a suitable fit.

It is also essential to ensure that the process of referring you is as easy as possible. Giving them a simple process for referrals will make them more likely to follow through. Also, don’t forget to say thank you!

If you want more crucial advice on how to build and grow your small business, contact Infuse Advisors & Accountants today. We offer a variety of business advisory and accounting services.