The Tribune

By D’Arcy Rahming

I’m really pleased when someone who has been referred by another active student walks into my business. In fact, we have buddy day once every few weeks. The children bring in a friend and they both enjoy a lesson for $10. Then we give the child a prize, such as a patch or pin. And we try to sign the buddy up for regular classes. It is really quite a lot of fun on these days.

I’ve found referrals a great way to market when you have a tiny budget. Tiny marketing budgets are a challenge that many small and large businesses face on a regular basis. However, the most effective method to combat this is having a systematic referral system. And a systematic referral system is built on great relationships with your clients. I’m reading this great little book by Tim Templeton called, ‘The Referral of a Lifetime’. I would highly recommend it because it hammers home that very point.

Referrals are more powerful than ever before. For example, social media such as Facebook, where your friends and even perfect strangers are privy to your thoughts, can help good news and bad news spread like wildfire. I know of one major firm that monitors social media for damaging remarks about its products, and then has an immediate response team. I am not sure what they are spending, but it has got to be a lot given the size of the company.

So how does a systematic referral system work? Well, first of all you have to know yourself. In his book, Templeton calls it identifying which of these four people fit your character. They are: Relational - Relational, Relational - Business, Business - Relational, and Business - Business. Relational - Relation are those type of people who are always ready with a hug, while at its extreme Business - Business are those people who are all business. You have to be authentically you, or you will not be able to develop good relationships with your clients.

The second part is based on these principles: It’s not who you know, it’s who your clients know. Build a database and segment it into great contacts to marginal contacts. Educate your clients about how you work, and your value to them, through regular tangible actions performed without fail. Keep in touch personally, consistently and systematically.

Referrals are really quite simple when you get down to it. Which is why I always advocate standing 100 per cent behind your product or service. You will then not feel like you are selling to people, but that you are actually helping friends solve a problem or get something they truly need or want.

• NB: D’Arcy Rahming holds an MBA from the Kellogg School of Management at Northwestern University. A lecturer at the College of the Bahamas, Mr Rahming has clients in general insurance, retail, the health and medical fields, sports federations and financial services. He is also treasurer of the Bahamas Olympic Committee. To contact him he can be reached at DArcyRahmingsr@gmail.com.