When you are trying to grow your business, referral marketing is one of the most important strategies, and we have several types of referral marketing. A referral comes from someone who knows you well and believes in you enough to spread your message for you. They may have a relationship with you that started years ago!
Your referrals can be individuals or groups of people. It doesn’t matter if they know you only slightly or if they know you very well – what matters is that they trust you and believe in your product or service.
When they feel this way about you, they will share your knowledge as both you and they benefit from their trust. This creates momentum and growth for your business. Read on to learn more about some of the best ways to create referrals for your business.
Types of referral marketing
There are several different types of referral marketing you can do to promote your business. Some are better than others depending on the situation, but all can work to strengthen your reputation and increase sales. What kind of referral marketing you should do depends on your budget, the amount of new customers you want to draw in, and the length of time you want to see results from each type.
In this article, we will discuss three of the most common types of referral marketing- why it’s essential to add these to your repertoire, how to use them effectively, and which ones are worth investing in at times.
Product referral is a type of referral marketing
A product referral is when someone recommends an item to use or purchase for someone else. This can be done through social media, talk to talk about the item, or direct sales via online shopping sites.
A great way to generate referrals is by offering a prize or giving away something that other people would want! For example, if you know of a good pair of jeans that are not expensive, then giveaway those shoes so others may win them free too!
Your friends and family who already own the item can also help spread the word about it to contribute to your sale.
Inter-personal marketing theory suggests that most purchases are influenced by individuals around us, so creating opportunities to interact with potential customers is a powerful way to draw in new business.
By adding value to the community, they will feel obligated to do business with you. Creating fun environments full of engaging conversations will boost your income.
Running a giveaways every month or hosting a chat event once a week both create engagement in the community, thus promoting your business.
Guest blog referral
A guest blogging opportunity is using another blogger’s content as your own. By posting an article that is related to theirs, you are helping them gain exposure for their site while simultaneously creating new content that people will read.
This type of referral marketing is very powerful because it creates continuous flow of fresh information that people can access anywhere, any time.
It also helps strengthen relationships between yourself and the writer you refer by complimenting their work and giving credit where credit is due.
By adding value to the online community, they will keep coming back to you!
There are many ways to ask someone if they would be willing to write about X product or service. The hardest part is deciding which approach is best depending on the person and the situation.
Making referrals via direct messaging on social media sites like Facebook and Twitter is usually the most effective way to do this.
Online advertising is also one of the types of referral marketing
One of the most common types of referral marketing is online advertisement, also known as paid search or pay per click (PPC) advertisements. With this type of promotion, you will need to find a way to source appropriate quality referrals.
As mentioned before, gathering these referrals can be tricky if you don’t know who they are yet. Fortunately for you, we have tips here for how to make that easier!
First, you should start by searching around for testimonials and comments about the referred product. These two pieces of content go together really well and can help you determine whether or not to buy the item being advertised.
Second, do some research and finding out what products the referrer has previously purchased. If they are happy with them then it is likely that you will be too!
Third, check out their social media accounts to see what kind of posts they share and if they speak highly of the company.
Email marketing is a great type of referral marketing
When someone needs your product or service, they will create a reason for you to provide it to them. They may ask their friends, family, colleagues, and even strangers to spread the word and talk about you.
By creating an interactive way to get people to work for you, you have entered into referral marketing.
Referring to yourself as an “excellent seller” is not going to win you many referrals. Instead, come up with ways to help others be successful by being a great seller themselves.
This can include talking about how to sell online, what products are worth investing in, and giving tips and tricks that are helpful for sellers. You could also do a giveaway related to selling or self-promotion.
Running a sale or discount is another way to gain attention and rewards for referring others. By having a sale, you increase demand which helps you reap the benefits of referral sales later.
Email is one of the best types of referral marketing because you can send messages to everyone all at once. Plus, you get the chance to add pictures and videos if needed!
That said, make sure to test out your emails on a few recipients first before sending to the whole list. You don’t want to scare anyone away or waste time promoting where there’s no response.
Social media marketing
So what is social media marketing? This is defined as creating or participating in communities, engaging with people around you, and promoting your products through them.
Social media sites like Facebook, Instagram, and Twitter are great ways to promote your business. You can create accounts for yourself so that you have an online presence, connect with individuals who may be interested in your product or service, and spread word about it.
By interacting with others and sharing information, you’re developing relationships which will help you gain exposure and generate new followers and supporters.
These sites also offer usability tools and features such as pictures and videos! All of this helps you get more engagement from your audience and thus, more traffic to your site.
Recent developments in digital media have made it easy to create engaging, entertaining videos. With the right software, you can even streamline your video production process!
By filming yourself or someone else, then editing the footage into stories and lessons, you can create some very educational content that people will enjoy watching.
This is referred to as “videomaking” or “video storytelling.” It has become increasingly popular for this reason.
There are many ways to use video marketing to generate referrals. Here are some examples:
Give other people free access to valuable information or resources via YouTube channels and linked sites.
Create product reviews or giveaways that could benefit others.
Film testimonials or interviews with professionals who work in your field.
Add value to communities and groups through meaningful contributions.
Running a successful referral campaign doesn’t necessarily require much money unless you want to invest in expensive advertising tools or materials. You can start small by creating blurbs about your business and sharing them on social media.
From there, spend time developing relationships and offering quality services or products while supporting others. The rewards will come back to you in form of referrals and word-of-mouth recommendations.
Advertising on the phone
A growing number of startups rely heavily on referral marketing to get new business. By offering free or paid services, you can create your service in exchange for another company’s contact information.
This is referred to as incentivized referrals because you are giving something away in return for someone doing something else.
Most people are familiar with this type of referral marketing when it comes to advertising. You spend money to put an ad up for a product or service, and then you earn credit if somebody that sees the advertisement purchases the product.
That’s incentive advertising!
Other types include getting other businesses to work for you by paying them to use your products and services (backup providers, for example), or creating a website using their content (social media sites do this all the time).
By bringing in new customers through these methods, you will eventually have enough revenue to cover the costs of running the business.
Tell your friends
A referral marketing tactic that is becoming increasingly popular is asking people to do something for you by telling their peers about you or what you offer. This is typically done through social media, blogs, forums, and advertisements where people can advertise services or products they offer.
By creating an environment where others are encouraged to promote you, your product or service will get exposure. Your potential clients and customers may even be so inspired by the referrals, that they directly go to you to ask about these offers!