Unlock an Effortless Way to Get Customers for Free
My name is Mike Grady.
I have made 100% of my income online since 1998 and have started and grown several business.
Today, I'm going to give you an obscenely easy way to get customers for free that you can implement today.
This simple sentence has helped me grow several businesses.
It actually works, and you can use it in your business.
The Power of Referrals
You should be obsessed with getting referrals, and here's why.
They're the most likely customer to yes.
Referrals buy
- They buy at higher percentages
- They buy at higher prices
- They buy more often
- They buy more times...
and they are most likely refer you more customers
So you have two types of customers;
- One that you could potentially get one that costs you a lot of money and does none of the things above, or
- One that's free, that does all of of the things above
Which would you prefer?
Well, obviously, the most likely customer to yes, the one who buys more often, buys more times and, refers you more customers
Independent of how big your business gets, 30% of your business coming from referrals, no matter if you're at a hundred thousand or a hundred million a year still
grows your business by 30%.
And if you r business is small or big.
It's still free
That's the type of stuff that compounds the business into infinity versus having one that plateaus because not enough people tell other people about it.
A Real-Life Example
I learned this back in the 90's and have used it ever since.
At the beginning of my career, before I left the corporate world, I worked at a newspaper managing a team that sold advertising, we had a new sales woman who came in and killed all of the records that had ever been done by the sales team, and this was a sixty-five person sales team.
As a manager, I was thinking, what is this woman doing?
Does she have higher close rates on the phone?
And she didn't have higher close rates.
For some reason, she was able to get 30 to 50% more sales than everybody else.
I was like, okay, so how is she getting more opportunities?
And so I got on the call and listened to her calls and thought she's not doing anything different.
And so we had a meeting and asked her what are you doing?
And she said, "I don't know. After I close the customer, I just say, Who else do you know who might also want this?"
She said, "I usually get one out of three people to send me one or two other people, and I just do that on every sale. I learned that in my last job."
And when she said that, it was like this big obvious... duh!!
I'm sure that line was in the script for the sales team.
And of course people get lazy because they don't want to scare a sale away.
By simply saying, Hey, Who else do you know?
Not?
Do you know anybody?
I'll be specific here.
The question is; Who else do you know who would benefit from (Your product or Service)?
Say it this way because now you're actually asking them to solve a problem with their brain, not make a quick yes or no answer.
When you ask a Yes or No question, most people are just going to say, "No, I don't know anybody. Let's move on."
Don't do that.
Ask; Who else do you know who would benefit from (Your product or Service)?
So Where Are We?
Number one, this isn't some eighteen year old Guru's referral video on, "Hey, you should ask for referrals."
This is actually how we say it on my team today and a way that you will actually get a pretty high likelihood that you or your people will be successful too.
Why?
Referrals are super valuable for a number of reasons.
One is that they compound with the business.
Meaning whether you're a hundred million business or a hundred thousand dollar business, 30% on a hundred million or 30% on a hundred grand is still going to be 30%.
And so this strategy one of the most scalable ways to grow any business overall.
The biggest companies in the world, the vast majority of what they get sales from is word of mouth.
It's from people telling other people.
In today's society, where people are more able to share things faster and bigger across broader audiences and networks, it matters more than ever.
It's so funny.
Business owners are like, man, why are my ads not working.
They were working?
Now they're not.
Everybody believes in positive word of mouth.
They don't believe in negative word of mouth.
Thing is, both word of mouth happened because that's how business works.
Referrals Who Come In Are More Likely To Buy
They have a higher close rate.
They pay more
They're more likely to buy a more premium version of what you have.
And they're also more likely to refer other customers.
So you get three spins on the moneymaking wheel from having referrals versus a cold customer.
Implementing the Strategy
So if you have, a recurring membership business that you have 10% monthly churn, well, you can obviously always keep trying to decrease that churn.
Business Rule: Churn will always happen at any level.
For example, if you have a thousand customers, you churn 10%, you need a hundred new customers just to break even.
One of the very smart things that business owners do is they say, okay, well if I can get 10% of my customers to refer someone every month, then I can offset that churn so that my business is stable.
And so by having a consistent way to get all your customers to refer you, 10%, you can make up for the 10% churn that you have.
Tracking
So watch the ratio between your referral percentage and your churn percentage.
This ratio is going to be your stable at rest growth rate.
And so if you could have even 20% referrals on 10% churn, then it means you're going to grow two to one and you will keep growing two to one no matter how big you get.
Take Action Now
Use this strategy to get more customers by just asking.
Actually weave this in to your sales process and do not be lazy about it.
It's an obscenely easy way to get customers that are free, pay more, stay longer, and refer you more customers.
Everybody wants to get more customers, and asking for referrals is easy and free.
Just create a new habit in yourself and your team.
FULL DISCLOSURE
I make content to make money and bring attention to our service.
My intention is to build trust with business owners so we can find the best ones and help them become more efficient, profitable and scaleable.
This article was inspired by Alex Hormozi.
My team and I are in no way associated with Alex Hormozi or any of the companies he owns.
I just think Alex puts out the best content for Entrepreneurs and Operators.
Enjoy
