Referral networking is perhaps the best tactic to grow and sustain a business. Referral networking is the process of gaining referrals from friends, associates and satisfied customers. You work with other respected and quality companies to support each other to grow and prosper. It’s easy to implement and the results can last a lifetime.

Here’s why referral networking is everything to your business marketing plan:

#1 Referral networking is a testimonial from a trusted source. Think about who you would rather do business with. Would you rather do business with a company that was referred to you from a trusted friend or associate, or with a business you have no information about?

Chances are you’d rather do business with a company that was referred to you. Most people would. Why? Because it removes some of the risk of doing business. When you get a referral from a client, friend or associate, you’re getting a pre-qualified customer. Your work is half done.

#2 Referral networking offers a win-win situation. When you network with other companies to refer each other, you’re not only growing your business – you’re helping others grow theirs. There’s a tremendous satisfaction with this experience. Additionally, you begin to build a strong community of supporters. When you align yourself with a group of business owners all motivated to help each other succeed, powerful things can happen.

#3 Referrals open the door for long-term relationships. When a customer comes to you because you’ve been referred, they have a different attitude. They’re generally looking to establish a long-term relationship with you. When you can offer them a good customer experience, you have likely gained a customer for life. Referral networking is great for long-term success.

#4 Referral networking is inexpensive. It doesn’t cost you anything to earn a referral. It’s a free marketing tactic. That means the return on investment (ROI) is 100%. There are few, if any, other marketing tactics that have that ROI.

#5 Referral networking provides you with time. Instead of pounding on doors and looking for customers, they’re coming to you via referrals. This means you can spend your time making money and satisfying your existing customers. It’s a much more enjoyable and economical way to do business.

Referral networking only works if you provide a fantastic product or service. A good customer experience will help motivate every single customer you have to refer others. Word of mouth will spread and your business will continue to grow.