Referrals--Start Asking For Them

As published in DM News

A few weeks ago I had an Aflac agent in my office. After we closed a deal he pleasantly asked me if I knew of other business owners in need of Aflac’s products. As a result of the good sales experience, I gave him five referrals. Every sales person knows the value of a referral however the concept doesn’t resonate well with email marketing practitioners. Now is a great opportunity to change that. Instead of relying on an inadequate forward-to-a-friend process, a more formalized referral program is needed to ensure success. A good referral program is automated, timely and usually starts where the original opt-in process ends. Once a website user has gone through the motions of opting-in, it is a perfect opportunity to ask for a referral. Ask the referrer not only for an email address but also a full name. When soliciting the referee to opt-in, always personalize the message, and most importantly, reference the referrer. A reference to the referrer gives you instant credibility and will produce a much higher conversion rate.

The above tactic works well with new signups however tapping your existing subscribers for referrals takes a little more creativity since they are often an afterthought. Most existing subscribers have little incentive to give you a referral since opting-in is a distant memory for them. The simple solution here is to provide an incentive. Trade associations are notorious for doing this by turning their referral campaigns into contests, rewarding lavish prizes to individuals who recruit a large number of new members.

Referral campaigns and tactics are an effective and proven way to grow a list organically. The good thing is that a number of email service providers offer some sort of automated referral mechanism to help you implement such programs. However, just as anything worthwhile, growing lists by referrals takes planning, effort and tweaking to make perfect.