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CHAPTER 5 MULTIPLYING YOUR BUSINESS PROFITS

This is the power of using referrals as a lead generator. The
great thing about this strategy is that since the new leads come
recommended by their friend, there is a much higher level of
trust and hence a higher conversion rate. At the same time,
you are able to control your acquisition cost by setting the
cost of your referral’s gift.

I had used this exact same approach for Adam Khoo Learning
Centre. For every new student my existing students recommend,
they get one-month tuition fees waived! I have had students
who never paid a single month in tuition fees as they kept
recommending more and more friends every month! Again,
this is another win-win situation.

Joe Girard, ranked the world’s greatest salesman by the
Guinness Book of Records (he was a car salesmen), talks
about the law of 250. He says that when you go to a person’s
wedding, you usually see about 250 guests. At the same time,
if you go to a funeral, you would also have a guest list of
250. In other words, the average person has a network of
approximately 250 people. Think about it. Every existing
customer you have could potentially bring you another 250!
All you have to do is to give them a little incentive.

What Joe Girard did was a stroke of genius and allowed him
to set a record of selling 13,001 cars in his 15-year career
(that’s an average of 6 cars a day)! For every person that
bought a car from him, he would give this customer a stack
of 250 name cards with his signature and the customers name
on it. He would tell his new customer to give his card out to
everyone he knows. For every new customer that Joe gets, he
would give the referrer a $100 commission.

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 161