Get free business from referrals

Do you have your own referral system for your franchise? "What is that" I hear you ask! And so many businesses ignore this fantastic low cost way of getting high margin business.


As an entrepreneur, of course you regularly analyse where you leads come from, don't you? So you will very likely find, as do most business people, that the best quality leads come from existing customers and contacts.

Why is that? Simple - they seldom query the price because the prospect has "done their research": they have phoned a friend. For many customers of franchises, the power of recommendation outweighs the importance of their own independent research, because they must by implication trust the judgment of the friend.

Thus, business that comes from referrals is often at full price, without discounting. And you already have a relationship (admittedly indirect) with the referee, so they are less likely to be a difficult customer.


So hopefully I have convinced you of the need to get more of these sort of customers, but how do you do that? You need to firstly find your local business networking groups. They might be a chamber of commerce, BRE, Refer-on, BNI, Institute of Directors or a host of others. Their representatives might shoot me for saying this but you don't have to pay the joining fee. In fact, I suggest that in the first instance you visit one a week for several months, spreading your gospel and gathering leads. There are so many groups now that you can go to networking group within 10 miles of you each week for 3 months and not visit the same one.


You also need to set up a system for your existing customers to refer you. There are lots of ways to do this that we outline in our franchise support network seminars but the most obvious one is to ASK them each time they buy! You will be amazed at how many agree to recommend you. Of course only one in 20 will actually do it, but that one in 20 is a new customer. And this marketing idea is FREE.

Using leadership in your franchise

As management styles have evolved over recent years from the forceful leadership style more towards enabling leadership, more questions are raised as to whether a successful leader needs to be more versatile than ever before.

It is argued that a "forceful leader" takes charge, is in control, takes stands and articulates them clearly. Someone has to make the tough calls.

The "enabling leader" empowers staff and substitutes and is able to delegate effectively. He does not just listen to others ideas but is responsive to them creating an understanding and enthusiasm for self development within an organisation.

In franchising, and in many small company environments, this approach is crucial to success of the business. In truth versatility is key. Versatile leaders adjust their behaviours, apply the right approach to the right degree for the circumstances in hand.