One of the most effective ways to generate new business is
to encourage customer referrals. That is, you can use the
influence of happy customers to help your business continue
to grow without having to rely on constant advertising.

This type of \\"word-of-mouth\\" advertising is well worth the
time:

* Many people are so busy that they're more than willing
to depend on the opinions or advice of trusted friends,
family, or other contacts. It saves them from spending
more time in research.

* Referrals produce a 'snowball' effect. People often
associate with those who are somewhat similar to
themselves. Happy customers can refer others who they
believe will appreciate your product or service. Those
people, in turn, may refer others... and so forth.

* Referrals are easier to convert into customers. An
enthusiastic endorsement of your product or service
by a respected contact has far more impact than a
sales letter. Your credibility and expertise have
already been established by your customer when the
referral visits your business.

Referrals, however, don't just \\"happen\\". Sure, customers
may love your product or service -- but that doesn't
necessarily mean they'll tell you or tell their friends.
Businesses can take a more active role to encourage
referrals:

* Ask customers to mention your business to others.
Leave a few extra business cards or brochures that
they can pass on to their friends and colleagues.

You might also choose to offer a referral bonus or
discount: free gifts, extra entries into a contest,
whatever is appropriate for your business.

* Follow-up. Ask your customers whether there's
anything else you can help with, and whether they're
happy with their purchase. If so, let them know that
you would welcome any referrals.

Sometimes customers will contact *you* with a positive
comment or a question. That is also a good opportunity
to ask them to pass along your name, number, or website
URL.

Take opportunities to stay in touch with your customers.
For instance, consider sending a physical thank-you
card with their purchase, or a greeting card during
the holidays. It will help your business stand out
from the crowd.

* Build your credibility. For example, many business
owners write articles and make them available for
reprint in exchange for a small \\"resource box\\" or
blurb about their business. If a reputable site or
publication runs your article, you instantly have
more credibility, based on *their* reputation.

Always thank the referrer, regardless of whether or not
the person he referred becomes a customer. This will
show that you appreciate him thinking of you. Reward
his behavior and he'll be more likely to repeat it in
the future.

Encourage and reward referrals such as providing lifetime
commission affiliate program... and you'll continue to
build your business day after day, year after year.

Another website promotion technique you can use is link exchange.
Visitors will be referred from your link exchange partners. So,
visit our homepage now!

_________

ABOUT THE AUTHOR:
Angela is the editor of Online Business Basics, a practical
guide to marketing a business on a beginner's budget. This
guide offers loads of instantly useable tips and links, in
a down-to-earth style that even marketing \\"newbies\\" can
understand! A helpful Online Business Dictionary is included
too... visit: http://onlinebusinessbasics.com/article.html

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