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Build your Business through Referrals... |
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I recently came across this article by Matt Mickiewicz. Thought this might be another way for you to increase your sales. It is worth considering implementing as an additional revenue stream. Here goes...
DJ Dart and Kelly Norris started their Web Design Firm, Verrius, in 1999, when they charged all their computer equipment to a credit card. As with most new companies, they started off without a client base upon which they could build the business and generate a recurring revenue stream.
Unlike other companies, Verrius chose not to send letters, do cold calls or go to networking functions to meet clients. Instead, they focused on creating partnerships with existing companies, who then offered Verrius's Web development and marketing services to their clients.
"These types of businesses typically lack at least one important element in the overall package of services they offer. For these companies, whose reputations rely on offering a complete package of services, Verrius supplies whatever services are necessary without their clients ever knowing we were contracted to step in," notes Dart.
Finding Partners
When Verrius started out in the Web development industry, it found partners by emailing them and following up with a phone call. "This was a bit of a numbers game, and attracted only a small percent of companies we contacted into our referral network. But persistence prevailed and as the number of partners/clients grew, so did our workload and business," says Dart.
In fact, the tactic turned out to be so successful that Verrius engages in no advertising. Instead, they focus on cultivating their partnerships, which in turn promotes the reselling of their services to their partners clients - clients they would never have reached otherwise.
Setting the Ground Rules for a Partnership
Verrius establishes two types of partnerships, depending on the company they are working with:
1. Reselling services.
"With these deals, we work strictly with the partner and establish a cost for the project. When the project is complete, we bill the partner who, in turn, bills the client, making sure to add a percentage or dollar amount to the project. This allows the partner to earn income on the project," informs Dart.
2. Referrals.
Every referral Verrius receives from one of its partners is rewarded with a commission. The specific amount of the commission depends on the size of the project and the contract they've signed with the partner.
Dart says that Verrius prefers to do reseller deals, especially with companies who they've dealt with for an extended amount of time. Not only does reselling allow Verrius's partners to earn more money, but the turnaround on projects is usually much quicker because both Verrius and the partner are already familiar with each others work styles.
Working With Clients
What happens when Verrius wins a project?
"Typically the client/partner remains the primary source of contact and we work behind the scenes. Depending on the contract, the partner may reveal us, or they may wish to keep us concealed and make it appear as if we're employees of their own business.
It makes the client's business appear larger and allows the clients to attach fees on top of ours if they wish," says DJ Dart.
The Results
The business became profitable after 3 months, and has stayed profitable since.
Currently, Verrius employs a full-time staff of five: Marketer, Programmer, Web Designer, Graphics Designer, and Copywriter. Business has been so brisk in fact, that on more than one occasion they have needed to bring in additional help from freelancers.
What You Can Learn
It's not necessary to own clients directly to earn a good income. If you have specialized skills or a great team that other businesses lack, you can partner with them and have them resell your services.
Approach software development firms, Internet marketing firms, ad agencies, and even other Web design companies. You can let them provide a full package of services to their clients, with the work being outsourced to you. They make a profit, they control the client, and you get business without having to go out and "sell".
Relationships with partners are everything. DJ Dart says "We have fun working with our partners, and we typically become friends with them" -- which of course means more work and referrals for Verrius.
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5 THINGS TO DO this week to build your business... |
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MONDAY, MARCH 3
Do your books for February. Are you profitable? Create a Profit and Loss statement as well as a Balance sheet. Revisit your company's budget for March. Adjust your expenditures, modify your sales projections, re-assess your marketing budget, etc., to make sure you are on the right track to achieving your goals.
TUESDAY, MARCH 4
Schedule a "Pow-wow" with five of your closest (non-competing) business associates. Arrange to meet in someone's home or office, anywhere you can hold telephone conversations without disturbing others. Before your "Pow-wow" each person should email a brief synopsis of her/his business, products and services, etc., to all the others.
At the "Pow-wow" each person commits to giving each person in attendance, right then and there, the name and contact information of someone they know who may be able to use the others' services. It would be great to contact each referral right from the "Pow-wow" to tell them to expect a phone call. Each person should leave with a minimum of four good referrals.
WEDNESDAY, MARCH 5
Tighten up your elevator speech. In 30 seconds or less you should be able to tell who you are, what your company is, what your company does and/or provides and
how what your company does and/or provides helps its clients/customers. Here as some good ones:
"I tell people where to put it! (smile and pause) I'm Ron Arnold, manager of STORE IT here in Dayton. If you've got 'stuff' we've got your storage space. As a full service storage site we offer a variety of ways to store it! Won't you come see how our store is your store?"
"I'm saving the people who are saving the world! (she pauses and smiles.)
I'm Alexis Anderson, a lawyer for non-profits. My company, AA NonProfit Strategies, based in the Southeast Ohio area, specializes in helping non-profits keep their fund-raising legal."
"I am a Techno Shock Therapist! My name is Eddie Ebon, founder of ABS Virtual Communications. I help my clients with their Internet marketing and promotion needs through web development, web site promotion and helping them incorporate their eMarketing with their overall marketing plan. Tell me about your current website?"
"We specialize in cracks! No longer will you have to look at cracks. My name is Denny Roberts. I am with Roberts Glass Repair. Bring us your crack or we come to you."
Practice your elevator speech until you can recite it flawlessly from memory.
THURSDAY, MARCH 6
Schedule two business seminars or workshops. Attend one workshop or seminar in March and one in April. One should help you build your business and the other should help you operate your business more efficiently and effectively.
FRIDAY, MARCH 7
Touch base with your A Clients and your B Clients. (See last week's 5 THINGS TO DO.) Call them or send them an email to see how what you can do for them ...and ask for referrals!
Next week we will send you more THINGS TO DO to build your successful business!
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Upcoming Events... |
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27 - Small Biz LEADS! Exchange **
*SUCCESS!Networking events:
- Open networking events. Non-members are welcome to attend as often as they like.
**Small Biz LEADS! Exchange meetings:
- Structured meetings encouraging members to exchange qualified leads. Membership
- in this group is limited one business per category. Non-members visits are limited to two.
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