We all intuitively understand the power of referrals. But most people leave them to chance.
One of the most powerful ways to target prospects in your market is to find someone who already has them as clients, and would be willing to refer you on.
In marketing speak, we call this a host/beneficiary approach.
Which is exactly what a client of ours recently arranged.
The host in our case is well known in his market and has a list of thousands of email and newsletter subscribers who value his advice. He has a regular TV show and is considered an authority in his space.
Our client (also an expert in this area) has appeared with him as a guest on his TV show on many occasions which means the host’s credibility rubs off on him by inference.
So here’s what we did.
Our client created a valuable report targeted at the host’s clients.
The Host sent out a couple of emails offering the report. Over 2,260 people directly in our client’s target market responded with their full name, email and mobile number within days.
And this is over Christmas!
Not only that, but a significant number took advantage of a further offer where our client gets to review their situation and recommend solutions.
The rest are kept warm by receiving weekly tips in the area our client specialises in. A percentage of those will go on to become clients when they’re ready.
Now I should point out this isn’t altruistic on the part of the host. In this case they charged a significant sum to access the list. However, the cost per targeted lead has worked out at 10% of what a non-targeted lead from social media produces. And as each client can be worth tens of thousands of dollars over their lifetime, money well spent.
Of course you can also create host/beneficiary relationships where no money changes hands. Or you pay a percentage as a commission. Or just have a reciprocal relationship.
A well thought out host/beneficiary relationship is a triple win.
It’s a win for you as you get targeted leads. It’s a win for your referral partner as they’re seen to be adding value to their clients. And finally, it’s a win for the potential client as they’re receiving something of value.
Done right, this is a very powerful mechanism which should be in every business owner’s arsenal.
If you’d like help setting up host/beneficiary relationships to boost your growth, give me a hoy. We’ll help you choose the hosts, create the value messages and execute the program
Call Rashid on 0414 913 334 to get started.