Dan Lok – How to get more referrals and attract more clients now
Date: June 25, 2016
Name: Dan Lok – How to get more referrals and attract more clients now
Presenter: Dan Lok
Referrals are important for successful entrepreneurs because they help them expand their business. Moreover, many entrepreneurs are struggling to get clients from referrals. Vancouver Entrepreneurs Group invites Dan Lok, the serial entrepreneur, to provide strategies for entrepreneurs to gain more referrals for their business. Dan Lok will discuss the hidden secrets behind referrals and he will provide strategies to help entrepreneurs overcome the fear of asking for referrals. In this presentation, entrepreneurs will be able to control their referral process and utilize the power of network to improve their business market.
Dan Lok is the Founder of Vancouver Entrepreneurs Group and also a multi-millionaire serial entrepreneur. Many entrepreneurs refer Dan Lok as the “Millionaire Mentor”. With over many years of experience, he managed to launch many successful internet companies and mentor many new young entrepreneurs to the top of their game. Dan Lok is a leadership speaker who owns many high profitable business venture. Moreover, he launched many best selling books, such as “FU Money” and “Secrets of Canadian Top Performers”.
Dan Lok believes often entrepreneurs think there is a external problem; in fact, there is not. The problem is in within. To search for the answer, entrepreneurs need to get out of the box ideas and apply massive actions.
Traditional techniques, such as coffee, BNI or business cards, do not work as well as used to. If these techniques are not working, why entrepreneurs are still applying in their business? Lok believes the answer is that these techniques occasionally work.
A majority of businesses come from referrals. The reality is entrepreneurs create referrals on purpose. The top 4 average strategy for common entrepreneurs when they could not get referrals are “hope”, “pray”, “do noting”, or “bitch and moan about the results”. Many entrepreneurs are not thinking about their problems deep enough. In fact, most business people do not get more referrals is because they do not believe they deserve referrals.
“Hope is not a strategy”
Lok shares the 4 common mental referrals barriers.
- Fear of not providing enough value
- Fear of hurting the relationship
- Fear of looking unprofessional or needy
- Fear of not knowing how to get out the conversation
Because of these 4 fears, entrepreneurs look for way out. This includes waiting for the best time, they want customers to read their mind, or even being too polite. Lok states people will no refer others to entrepreneurs if they are not confident the result is going to be positive. When people give referrals, they feel obligated on the result.
Giving referrals is like an actual purchase. People have the mentality that they rather take the lost instead of their friend take the lost. They do not want to refer because they do not want to take the risk.
“Be active because passive referrals is never work”
In order to get referrals, entrepreneurs need to b referable. In order be referable, they need to be reliable and able to deliver great services and products.
Refer-ability factor
The key question is can entrepreneurs really deliver what they say they will deliver. Entrepreneurs need to trust that no only can they provide great products and services, but they are consistent inlacing up to high business standards.
Lok suggests ideas to get entrepreneurs to be more referable.
- Confidentiality
- Living up to their branding
- Consistency in follow-up a system of regular communication with clients
- Consistent billing practices; ensuring clients get value and their pricing does not vary
- 100% satisfaction guarantee
- How they communicate with their clients
- When do they communicate with their clients
- How they promote themselves
- How they show up at the networking event
Entrepreneurs need to apply the principle of slight edge. This means entrepreneurs need to think all decisions are either being poorer or richer. Make quick decision will help entrepreneurs apply the slight edge.
Lok emphasizes consistency is key to everything. Entrepreneurs need to give consistent delivery value to clients. People will watch and observe. In this uncertain world, people are selling certainty. People are willing to buy certainty. Entrepreneurs do not get more referrals because they want it, demand it or desperately need it; moreover, they only can get referrals when they deserve it.
“Either you are high performer or not”
Lok mentions there are only 2 times clients will ever refer. The first time is right after they have a positive experience with entrepreneurs. The second time is when a friend express a need for a solution.
The number one key to get unlimited referrals is to have clients remember entrepreneurs when someone they know need them, and not when they decide they want a new client. Clients need to understand the solution entrepreneurs are delivering. If entrepreneurs can make that easy to recall, clients will remember them when they hear someone describe a need for what they do. People do not really want their clients to share with entrepreneurs the names of their friends. However, they want clients to share their name with their friends at the right time.
Lok shares the fundamental of referral marketing is being able to describe something unique that entrepreneurs can deliver to a specific kind of client. Lok suggests entrepreneurs to use the word “professional” in their pitch because the word “professional” is a powerful word. The pitch will follow what specific kind of clients they work with. Afterwards, they need to process and follow by the call to action.
8 proven referral strategies
Strategy #1: Move clients up the loyalty ladder as quickly as possible
In every business, there are 5 major stages in the loyalty ladder: prospect, customer, client, member, and raving fan. Entrepreneurs need to make sure not to people go up by themselves; instead, entrepreneurs need to pull them up by accelerate and proactive. Entrepreneurs need to be assertive and proactive in moving first-time buyer to customer to member.
Lok thinks the best way to have a member is to have them paid forward or on auto-charge, especially if there is pain of disconnect with the auto-charge. The key is to find the method to get them to pay repetitively.
Best members is the best client. People who are already clients are already giving money, so it is easier for them to give more money. Therefore, Lok suggests to get them on prepaid system. In any market, there will always have a segment that will go for premium.
Giving referrals deepens the commitment of client. It will extend the life and activity spending of that client in the business.
“The more clients refer, the longer they stay. The more money they spend”
Strategy #2: Give people an interesting story to tell and provide good tools to their referral partners
The key thing is that facts tell and stories sell. Entrepreneurs need to have stories they can tell about themselves. Simple and straightforward referring can be awkward or comfortable. However, if they use interesting stories, they can help others discover more about them. Entrepreneurs just need to provide easy tool for them to direct others to them.
Lok believes the easiest way to do this is to offer information that their customers or referral partners can give out, that allows them to control the story being told about them while being helpful to people receiving the information. Also, entrepreneurs need to give ideal prospect something they do not have before that will help them see more clearly.
Entrepreneurs must remember the important business philosophy, which is they create their own rules.
“If you hear you cannot do that, you are on the right track”
Strategy #3: Using powerful testimonials to generate more referrals
Entrepreneurs need to have a system to generate testimonials. Lok recommends 6 ways to do that.
- Help them write testimonials
- Use photos as much as possible
- Use audio and video testimonials
- Make them as specific as possible
- Put them on the website
- Use the actual letters
Strategy #4: Send other people referrals
Lok shares an interesting story in the presentation. He uses a website called Vancouver Trade exchange that provides the service to exchange service with another service. Dan sends referrals to Scott, the owner of that website. and Scott promotes him back. The important thing is that entrepreneurs should always deal with people that get referrals.
Entrepreneurs need to deliver an experience people want to pass along. The delivery is the prerequisite. The amount of things entrepreneurs do to demonstrate they are the best to handle clients’ problems is significant.
“Become a hub, a connector, or an influencer”
Strategy #5: Use reverse prospecting
Lok defines reverse prospecting as reverse engineering client’s network of contacts. Afterwards, entrepreneurs can present them with a list of people they know. Then ask them this question.
“I’d like to help more people in your group. Who on this list do you think we should send your gift to?”
Traditionally, entrepreneurs are taught to say “do you know anyone who needs the service?”. Clients do not know anyone who needs the service at that moment will respond back “No one comes to mind, but I will keep my eyes open”. This simply means no referrals.
Reverse prospecting is different than traditional referrals. Entrepreneurs have already done the homework for clients. Entrepreneurs have figured out who they might know, who is similar enough to them that might need their services.
Strategy #6: Let clients know they will be asked for referrals later on
Lok shares a proven script for entrepreneurs to use.
“Good morning, my name is ____ and I am the owner of this business. Before we get into that it is you require, I’d like to let you know how we work with our clients would that be ok?”
“We get about 80 percent of our business from referrals and I like working with people just like you. So, what I’d like to ask is that if you believe you get value from working with me, you’ll refer at least two people to me who are just like you. I’m not asking you for them now, but at some stage when you believe you’re received great value. Would that be OK?”
Entrepreneurs need to plant the seed so when they go back to them, they are not surprised. Based on the proven script, Lok suggests two people because it does not sound too threatening. 5 people might be too much.
When entrepreneurs are asking for referrals, they need to take it away so the want it even more.
“I’ve been giving it second thoughts, I’m beginning to think I may have been overly hasty in asking for a referral from you. You see, we have been inundated with referrals lately, and quite honestly, I only want to take on referrals if we can guarantee the same fantastic level of service that our current clients enjoy.”
“I’d hate to disappoint new clients by not being able to live up to their expectation”
Strategy #7: Make giving you a few referrals a condition of doing business with you
Lok suggests entrepreneurs to use a commitment statement. This is a document that sets out what entrepreneurs will do for clients in return for their making certain commitments for them. Entrepreneurs can also make a video that outlines how they want to work with clients and why they should give them referrals. Many places, such as The Vancouver Club, will only accept clients who are referred by current clients.
When entrepreneurs advertise this special offer, this gives them an air of exclusivity, which makes certain people want to do business with them.
Strategy #8: Use events to create referral opportunities
Sometimes talking is not enough because other parties might be distracted, time pressed or minding elsewhere. Entrepreneurs must give their clients a reason to talk about them and bring their referrals directly to them. When there is an event, they can introduce referrals directly to entrepreneurs.
Based on advanced human psychology insight, Lok believes if people look at the patterns for starting human relationships outside of business, they mostly begin with introduction in group setting because it is less pressure for people. Entrepreneurs should go after that because that is where the profit lives.
Allow them to now it is their best interest to see entrepreneurs succeed. Lok provides 9 areas for referrals to see entrepreneurs succeed.
- Seminars
- Luncheons
- Book signing
- Parties
- Social activities
- Sports activities
- webinars and teleseminars
- Google Hangout
- Facebook livestream
Lastly, Lok wants entrepreneurs to embrace the referral mindset. They must believe that asking for referrals is a safe thing to do. They need to consistently give referrals to others and expect to get referrals as well.
