Motivating Your Customers To Give Referrals
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By Deb Bixler
A home party plan expert knows how hard it is to find new clients. One of the things that a home party professional struggles with on a regular basis is generating new revenue.
Referrals are one way that a small business finds new clients, but referrals can sometimes be difficult to come by. With a little creativity, you can inspire your current clients to bring you new business on a regular basis.
Bring a Friend and Qualify to Win a Prize
You have to be careful when you include incentives for guests in your home party plan. It is common for guests to bring people who are not interested in your products just to try and get your free gifts. You want to inspire guests to bring at least one friend, but you do not want to have to give away an armful of gifts just to get people through the door.
The best way to handle this is to offer people the opportunity to win door prizes if they bring friends to your next event. This method will not only help you avoid spending a fortune on gifts for people who will not be buying product, but it can also motivate guests to bring more than one friend.
For each friend that a guest brings to your event, the guest gets one entry into the door prize drawing and so does the friend. A guest that brings three friends will get three entries. As long as you have a decent amount of nice door prizes to give away, then this can be quite effective.
Bring a Completed Order Form and Get a Prize
Giving door prize opportunities to guests and their friends is a good way to motivate guests to refer your business to others. But if you want to have your guests sell your products for you, then you need to offer something more concrete.
There are two ways that you can motivate guests to solicit orders from their friends and bring completed order forms from their friends to your event. The first method is to offer a prize for each completed order form that your guests bring. Base your prizes on the amount of the order so that you are not giving expensive prizes for small orders.
The other incentive you can use is to give guests discounts on their own orders when they bring in completed order forms from referrals. You can start at a 10 percent discount on the guest’s order for the first order form and then add a small increment for each additional order. For example, you can offer 10 percent off of the guest’s order for the first referral order and then two additional percent for each subsequent referral order.
You work hard to sell products in your party planning business. The key to a successful business is when you get your customers working hard to sell for you as well. By using incentive plans, you can get your customers to generate revenue for your business and bring you new clients as well.
Deb Bixler, host of The CashFlowShow – Direct Sales Radio and home party plan trainer brings home based business owners training and direct sales business success.