How to Build a Referral Network

Word-of-mouth referrals are the number one method professional services firms get leads and gain new business.

As 82% of business owners use referrals from peers, friends or family when searching for an accountant, every accounting practice needs a referral marketing system. Five questions every accounting practice should think about:

  1. Have you developed a referral network? (This should include financial planners, mortgage brokers, current clients, family and friends).’
  2. Do you reward and recognise referrals in a meaningful way? (For example, bottle of wine, gift voucher of a reasonable value e.g. $100+, lunch at a good restaurant). The reward must have notable value.
  3. Do you record all business clients gained by referrals and lost throughout the year? Do you find out why clients have left the practice?
  4. Are you investing your advertising dollars in the wrong mediums.
  5. Are you spending a minimum of 2% of turnover on business client acquisition? This includes PR, reward schemes etc.