Referral Sources Produce Qualified Leads!

In order to become a successful Consultant in the Factoring industry, you have to consistently Find your Prospects, Expose your Prospects to you the Consultant, Educate the Prospects about the services you provide and WIFT (What is in it for them) or why should they do business with you?Follow up –  a number of independent studies conclude the more times you communicate with a prospect (referred to as touches), the probability of closing a deal increases.

There are a number of different marketing strategies that a consultant could implement in their marketing plans including: Direct Mail, Internet Optimization, Trade Shows building Referral Sources, Networking etc., drawing from my experience as a student of the industry, as a consultant, a Funding Source and visiting instructor responsible for teaching and thousands of individuals. I have found that a vast number of new and seasoned consultants are reluctant in developing referral sources and networking. Why? Perhaps it is the anxiety that comes with communicating with strangers and Professionals.

Time constraints – many consultants have only so much time to put forth to their Factoring consulting business which limits their time to set appointments and give presentations. Or perhaps it is the fear of giving a weak presentation, the anxiety of establishing credibility and knowing what to say to the “Gatekeeper” to give you the opportunity to give your presentation.

The formula for developing Referral Sources follows the same procedure as for developing prospects and closing deals. Find a Referral Source, Expose the Referral Source to you the Consultant, and Educate the Referral Source about the services you provide and WIFT (Why would the referral source want to send business your way). Follow up – maintaining regular contact. I recommend communicating with the referral source 5 times in 30 days.

Successful Industry Professionals understand that Referral Sources can become the most important asset to building your Factoring business – because Referral Sources send you qualified leads! It is much easier to convert a prospect to a client that has been sent to you by a referral source vs. cold calling direct marketing. In the Factoring Industry there is an abundance of opportunities for building referral sources including Accountants, Banks, Bankruptcy Attorneys, Equipment Leasing Companies, Insurance Agents and Networking functions. The great thing about building Referral Sources is once you have made initial contact and educated the Referral Source to WIFT – the follow up and maintaining regular contact is simple.

The same principles apply to prospecting for Referral Sources as they do for prospecting for deals. Maintaining regular contact (touches) with the referral sources increases the probability of receiving leads.  A modest goal in my opinion is to aim at developing 50 referral sources..Start with your center of influence, in your back yard and build your referral sources nationwide.

Michael Ponomarew brings with him more than 24 years of experience in entrepreneurship, marketing, and business management. Mike can be reached at mikep@millenniumfunding.com or by calling 888.652.8298 ext. 45.