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MARKETING 101 If you aren’t asking for referrals when you finish a successful renovation for a happy client, you are missing out on future work. The average ‘close’ rate on referrals is more than 30 per cent. That compares to something like 5 per cent on leads that come to you from the web. The key to getting referrals is to ask for them. By Mike Draper


lmost every contractor I talk to tells me that, although they get a lot of business through referrals, they want more. Not only do they wish they could get more referrals, they wish they knew how to get more referrals. Let’s start off this discussion by looking at two ways to get referrals. One, which is passive (it happens without your participation, usually), is called Word of Mouth (WOM) marketing. The second,


Nov/Dec 2013

better way to get referrals is called Referral Marketing. WOM marketing isn’t really marketing since, as we’ve established, you don’t really do anything to create the WOM lead. The lead comes to you or it doesn’t. You don’t know if someone called you because they were referred to you. And you also don’t know how many times your name was given out by a happy client of yours but the prospective

Referral Marketing 101  

Canadian Contractor November/December 2013