Word of mouth is perhaps on the of the best and most cost-effective ways for you to attract new clients to your business, but how do you go about getting people to talk about your products and services in the first place? Sure, you could invest thousands or even millions of dollars into elaborate ad campaigns, but these may or may not work. Worse yet, you may “waste” all of that money on minimal return. There’s nothing wrong with advertising when it’s done right, but there is an inherent financial risk involved.
An alternate strategy that you may want to consider is to develop relationships with other businesses in your niche, but not necessarily with your direct competitors. Instead, build relationships with businesses that offer products and services that best complement your company’s offerings. For example, a freelance writer would work well with a web designer, graphic artist, or search engine optimization specialist. These supplementary services do not infringe on the writer’s own offerings, but this two-way relationship can serve as a source of referrals for both parties involved.
Another great example would be in the hospitality and tourism industries. Hotels can develop relationships with cruise lines, travel agencies, car rental companies, and so on. Working together, valuable “bundles” can be offered to customers that result in profitable business for two or more companies. Have you ever wondered why you see so many flight+hotel packages at travel agencies?
No matter what kind of business you run, there is a good chance that there are other firms that can offer supplementary and complementary services. Work these relationships for mutual benefit!
InvestorBlogger
November 20, 2008 10:19 am
It’s true. Working those relationships can bring much bigger benefits than simple advertising.
Our business got most of its initial clients through walk-ins and word of mouth. In fact, even after 8 years, we still prefer WOM advertising as it helps with the pre-sell. Often the clients are already sold when they come in.
Kenneth
Phil K - Local Online Marketing Blog
November 20, 2008 3:45 pm
Partnering with related but non-competitive companies is what I like to call Horizontal Affiliation.
As a real life example, my “main” company Green Business Development provides custom web, internet marketin and technology services for small businesses. We horizontally partner with local printers, local computer hardware retailers and local network installation services; both are companies targeting the same clients however none of us directly compete.
This way I can pass out 3-4 business cards when I make a sale, and I have 4 other companies doing the same for me. And of course, we all offer eachother 10-15% referral payments!
Phil