Leveraging customer referrals to generate new leads

5/12/2011

Thanks to the internet, there are a number of different strategies that business owners can leverage to generate new customers. However, as entrepreneur Norm Brodsky recently suggested, perhaps the best way to acquire new customers is through traditional referrals.

Brodsky recently spoke to Eilene Kondysar, who helps people with credit problems. She gets most of her clients through referrals from real estate professionals, who turn potential buyers to Eilene to get help with their credit so they can purchase a home. Since Eilene's method was so effective, Brodsky suggested she find more partners, such as accountants, lawyers, bankers and other professionals.

"If you've found a good way to make sales, focus on getting as many as you can with that approach before spending time and money on untested methods," he writes for Inc. magazine.

Marketing is expensive and many brands turn to commercial loans to help fund their promotional campaigns. However, by leveraging customer referrals, businesses can generate new leads without having to spend a lot of money, which is perfect for cash-strapped entrepreneurs.