Stop competing with your competitors

Lisa — Fri, 04 Dec 2009 17:13:23 +0000

There’s something wrong with helping your competitor, right? I used to think so until I read the Small Business Trends blog post “Build your business by promoting competitors.” In some situations and in certain crummy economic times, it makes sense to work with, rather than against competitors. Some of the better tips in the post are:

Realize you’re more powerful in numbers. Numbers give you street cred and the ability to do more than you could on your own. Keeping friendly relationships with competitors means that when things get slow, you can rely on one another to come up with a plan to help things pick up.

Create a targeted referral system. By creating a good relationship with your competitors, you devise the perfect referral system for the both of you. You’ll show your customers that you’re confident enough to send them away (knowing they’ll remember the action and come back) and you also create a lot of goodwill with a competing business that will surely be able to replicate the gesture and send business your way, as well.

Offer referral incentives

Lisa — Mon, 29 Jun 2009 15:32:50 +0000

I’ll scratch your back if you scratch mine. One hand washes the other. You get what you give.

Referrals are an easy way to grow your business.

Doesn’t it make sense that if you’re good at what you do, referrals should come easy to you? Some folks may automatically refer you to their friends and colleagues, but others may need an added incentive.

When you meet someone who could refer business to you, offer to pay them a percentage of any sales you make from their referrals. Get to know them first. Otherwise your offer may border on creepy.

When you finish a project that came from a referral, pay the person who made the referral immediately. That’ll encourage them to refer more people to you. When a prospect contacts you, don’t forget to ask how they heard about your company.

Another option is to barter services in exchange for the referral. Let’s say you’re a Web designer and you need furniture or supplies. You could offer to create a site for a furniture retailer or office supply company. Keep in mind that bartered products are taxable. Check with your accountant to make sure you pay the right amount of taxes.

Cross-promotions are another incentive for referrals. If you’re sending a mass e-mail to your clients about your products or services, include information about someone else’s company. Ask the person whose information you included in your mass e-mail to include your information in one of their mass mailings.

Home Office Expert, Working From Home, Small Business tips » Referrals

Stop competing with your competitors

Offer referral incentives