Why You’re Not Getting Referrals: The Straightforward Truth and How to Fix It #2

The reason that business owners don't get free referrals is because we don't ask for them.

Simple as that.

We don't remind our customers that we are open for business.

It's as simple as, "Please send your friends."

Our customers, like any audience, can only know what to do if we tell them.

I have learned 7 ways to ask for referrals

Number 2 is the Two-sided Referral Benefit.

I prefer this method personally.

The Two-sided Referral Benefit is when we pay the CAC (Cost to Acquire a Customer) to both parties.

Half goes to the referer in credit or cash and half goes to the friend in credit then they buy.

This way, they both current customer and potential customer benefit.

It also doesn't seem to your current customer like they are only getting a friend to come in on this special offer so they can get paid because their friend is going to find out.

I have found that the Two-sided Referral Benefit works really well.

As a side note, whenever we run a promotion, we get an additional 25% more customers from asking person who responded to the ad to bring a friend.

Example

If we got a hundred people to respond to an ad, an addition 25 of them, come from referrals just by saying, "Hey, I'll give you a hundred dollars off your thing and I'll give your friend a hundred dollars off too. Who can you introduce me to?"

Sometimes we have people bring five friends.

Even if 1 out of 10 brings a friend, that is still an addition 10 people.

You just don't know who the influencer is in their community or your customers.

So you just have to treat them all the same and if you ask, you'll just get good reviews from the rest of them.

Here is a Pro Tip for You

Here is how you run paid ads for free.

In our service business, we get 25% to 30% of signups from referrals.

Now here's why this is important, because we asked for a referral the moment they sign up.

Because our CAC (Cost to Acquire a Customer) is always above three to one, we are able to get 25% to 30% in for free.

I cover my cost to acquire all my customers simply through the referrals.

That creates a really wonderful loop of spending more to get more customers.

You know why some people don't do this?

They run ads and simply, literally don't ask.

So start asking.

Today.

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.

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