You Can Ask for Referrals Without Really Asking

Ask without asking? “Just about every course or book that deals with referrals teaches you one single method- ‘asking’ for referrals.”

David Frey, President of Marketing Best Practices Inc., goes on to say, “…there’s a HUGE problem with this approach. People HATE to ask for referrals. You hate it, I hate it…”

Mr. Frey also says, “Asking for referrals is right up there with asking your friend to come to church with you on Sunday. It’s downright uncomfortable.”

Although many of us might agree and believe that Mr. Frey is right, he obviously didn’t read the first article in this newsletter. Nevertheless, if you don’t like to ask for referrals, that’s OK, there is a way to ask… without actually asking.

This Is What I Call the Automatic Referral

This is where referrals get really exciting. Automatic referrals are exciting. The automatic referral is built into your work-flow.

A system is a process that has a predictable result because it happens the same way every time. The automatic referral needs to be systematic and transactional, not relational. In other words, it needs to be triggered as a part of the transaction, not triggered by your relationship to your client.

It’s easy to build your referral system into your transaction. It could be as easy as a coupon on the back of your statement or invoice. Thank them for the order and at the same time ask for a referral. “I sure appreciate your business. For every client you refer to my office, I’d like to give you a dinner for two at [name of restaurant here].”

Of course it doesn’t have to be a restaurant. It could be cash, a credit on their next order, anything that might entice them to offer you a referral. I’ve seen a $5 gift certificate to Chili’s Restaurant bring bank managers out of their offices to sign up new checking accounts. When was the last time you saw a bank manager stop what he was doing to fill out a check order? These kinds of incentives really work. And if you make it part of the transaction, it’s easy.

How Much Is a New Client Worth?

How much are you willing to spend to get one? Answer these two questions, and come up with some kind of offer that your clients can’t refuse.

To show you what I mean, let’s take a look at some of what we’ve discovered over the years at Universal Accounting. The average bookkeeping client is worth $300 in monthly billing each and every month. Over the course of the next two years, you’ll find that customer is worth $7200.

I think that’s worth a dinner or two for a client who gives you referrals… don’t you? Now, let’s make this even more interesting. Let’s look at this scenario and include doing their taxes along with their bookkeeping.

Over the years we’ve discovered that the average business client who adds tax planning and preparation to bookkeeping services, will increase that $300 per month to $400 per month. Over the course of the same two years, that client is now worth $9600. At this point, a referral is worth a lot of money to your tax preparation and bookkeeping business.

By institutionalizing the referral process, giving your clients an incentive to give you a referral, you can watch the referrals pour in.

“Automatic” Referrals Without Asking… What Could Be Better?

It really does get better. Referrals are only part of creating a successful tax preparation and bookkeeping business. All the information and experience to not only prepare income tax returns and the same training and expertise in preparing the tax returns for small business make it even better.

And it doesn’t stop there. With the Professional Tax Preparer program you’ll get all kinds of ideas and suggestions that will help you market your professional tax practice to businesses and individuals.

There’s never been a better time to be a professional tax preparer and there’s not a better place to begin than with Universal Accounting Center. With all the educational tools you need to learn tax preparation and accounting as well as all the marketing education you’ll need, all you need to do is click on the link below and learn how to start your successful and profitable practice today.

Show Me How Achievable, Profitable and Easy a Tax Preparation Business Can Be