What Is Referral Marketing?

Referral marketing is built on the basis of customer loyalty. Through the guidance of customers, companies allow loyal customers to spontaneously do marketing for the enterprise, so as to achieve good emotional communication between the enterprise and customers, and achieve customer-centricity. A real marketing approach.

Referral marketing

Referral marketing generally has the following two:

First, referral marketing can make full use of the social environment. Since China is now in the period of a socialist market economy, all kinds of competition are becoming increasingly fierce, and people's time, attention and loyalty have become a scarce resource for enterprises. Do you think that in the fierce market environment and social environment, everywhere is full of pressure, people face many jobs, families,

It's the same when buying anything: "It's not how much you pay, but how much you get." Think about it, what do consumers get when they shop at a discount? They get more and more debt that depreciates over time. So if someone is willing to pay 200 yuan and buy a brand new sofa that you bought back with 2,000 yuan two years ago, you are already very lucky. The sofa is like

Use referral fees to add value

I've heard this sentence: "You help me scratch my back, I will help you too." In other words, you help me build a house, I help you build a house. You help me make more money, I help you make more money. This is "complementary."

The concept behind production consumerism is that you help your business partners expand their business and recommend their products and services to people; in order to repay you, this company will give you more discounts or pay you referral fees, or both Give you all. Not only do you get the product, you also have the opportunity to own your business and build assets. This is a win-win situation.

Since the beginning of business, referral fees have existed in one form or another. Referral fees are a powerful way to increase business experience. For example, I have a friend who goes to a real estate company whose company sells 100 houses a month, which means that 100 new house owners will look for a mortgage, or consult a law firm to do the transaction procedure, or find an insurance company To provide new insurance.

Suppose you own a law firm. If my real estate agent friend introduces you a business, you will pay him a small fee. Is this business a good deal? Of course it's a good deal. This is also very good for my real estate friends. He reached an agreement with the best ABC law firm owner in the region to introduce all his business to ABC Law Firm. The reward he got was that each time he introduced a business, he was paid 50 yuan. In this way, the recommendation fee for one year was more than 50,000 yuan.

The beauty of this recommended approach is that everyone benefits. The manager of a real estate agency is happy because he can make money with his word of mouth recommendations. The staff of the law firm are very happy, because they can get about 100 new clients each without having to advertise. Customers are happy because they can get awesome service by paying a reasonable price, which is the power of recommendation. Every party involved in the transaction gets extra value.

How does the "1 + 1 = 4" multiplication concept work in referral marketing. Let's suppose a friend asks you to try a vitamin supplement that is marketed as a referral. You like the effect of this supplement, it makes you more energetic and loses a few pounds before you actually start trying to lose weight. You are a vivid proof of the effect of this product, and you would like to recommend this company's product series to your friends.

Let's suppose that in the first week after you try a product, you introduce this product line to a friend in order to earn extra money, and then he joins your new referral business.

The second week, you and your new business partner copied your efforts, that is, you recommended this product to another friend, and the first friend who joined your referral business also recommended it to his friends Up this product.

By the second weekend, you recommended a second to join your business, and your first partner recommended his friends to join his new business. Now, in your referral business, there are a total of four people: you, your two friends, and a friend recommended by your first friend.

Now do you understand why I said "1 + 1 = 4"?

If you and your referees continue to copy your work week after week, the size of your referral organization will double from month to month until your organization reaches thousands! All you have to do is recommend this product to a newcomer every week and then teach all the businessmen who join you to do the same thing.

Now comes the most exciting part of referral marketing. Because you are the first person to recommend this company's product, this company will not only give you a discount when you buy this product yourself, it will also give you a referral fee based on the sales volume of your friends buying this product Or commissions; plus commissions for his friends to buy products, plus commissions for his friends' friends to buy products; go on.

If, in one or two years, your referral organization reaches 100 people, or even 1,000 people, or more, you can earn commissions for all products purchased by everyone in your organization in a certain month. Think about it. It's not surprising that a referral organization grows to thousands. Hundreds of thousands of recommended partners can buy millions of products every month. Therefore, it is not surprising that thousands of people around the world have achieved wealth independence. Already.