Joint Venture and Referral Micro-Groups The Next Best Thing to Reactivating Your Own Past or Current Customers

PART ONE: Joint Ventures

What Are Joint Ventures? A joint venture is where two companies come together to work on a specific, well-defined, and thoroughly executed marketing effort for the mutual benefit of each company.

Why do they work? A customer is a customer is a customer The most important thing in marketing is the “Market” A good list is very forgiving – a bad list is a tough sell You get to borrow the most expensive thing there is to build in business – TRUST!

What Are Some Examples of Joint Venture Marketing Projects? Endorsed Mailings Endorsed s Invoice Stuffers New Client Welcome Packet Stuffers List Swaps Cost Sharing for Lead Generation

What Is NOT an Example of a Joint Venture Marketing Project? I refer you and you refer me… Casual, meaningless offers to “help each other” These type of arrangements only produce accidental, occasional benefits They are desirable, but they are not join ventures

Who Makes for a Good Joint Venture Partner? You are probably already referring them They have a list of past customers that are very similar to yours They maintain communication with their past customers They are worth referring to your clients They will help you execute the marketing effort

How Do You Make a Join Venture Happen? Make a short list of target companies Approach them with a “fully formed,” specific idea for marketing Make it “done-for- them” simple You’ll have to do ALL the work and bear your end of the cost

What if I offend my other referral partners? One good joint venture can be worth more than all your other “casual” referral relationships Measure the true value of other referring partners Choose someone you can work with on an ongoing basis Someone who wants to grow their business proactively, long-term

Endorsed Mailings (2 Examples) Envelope is from mailing partner On your letterhead “Nothing In It” for You Headline gets right to the point and elicits curiosity Problem, agitate, solve Specific offer Call to action Plug for yourself

Endorsed Subject line is very important is much shorter Problem, agitate, solve Offer Call to action Plug for yourself

Invoice Stuffer or New Client Welcome Kit Recommendation Subject line is very important is much shorter Problem, agitate, solve Offer Call to action Plug for yourself

Anonymous List Swaps: Past Customers &Unconverted Leads Always try for the endorsed mailings first If not, a good mailing list a second option and you maintain anonymity Just because you didn’t close a deal doesn’t mean your referral partner might not be able to do so

PART TWO: Referral Micro-Groups

The Power of Being Intentional and Systematic A little bit of organization, structure, and commitment goes a long way You don’t have to over do it You do need to be clear in your purpose You need “buy-in” from your referral partners

What is a Referral Micro-Group? A small group of three to four people who meet regularly to swap referrals (every two weeks) Referrals are collected in a systematic, reliable, consistent fashion Members must commit to using the Project Information Sheet

How Do You Get Started? Pick your “top three” referral partners you already know Get them together and tell them what you’re trying to accomplish Have the “rules” written out in advance. Have them sign the document promising to adhere to the rules

Who Makes a Good Member They must has a good list and be willing to survey it or… Have good “estimate flow” Have strict control over the estimate process and implementation of Project Information Sheet Be Right-Sized Be Legitimate Have a Brain

Potential Groupings Port’s Group Arborist Tree Service Lawn Maintenance Landscape Design Master Gardener Outdoor Lighting Aaron’s Group Painter House Cleaner Tile Specialist Carpet Specialist Cabinet Maker Daniel’s Group Boat Sales Boat Service Yacht Club? Marinas?

Advice on Meeting Centrally Located Don’t Change Locations Buffet Style Breakfast Don’t Make it Complicated Do Consider Tracking Number of Referrals Generated by Member

Doing the Math Member 1Member 2Member 3Member 4 Weekly Estimates Fill Out %70%60%40%30% Trades/Sheet3223 Weekly Referrals Your Service 15% Of Time % Close Rate $1000 Profit per Sale $450$540 $810 Monthly Profit$1,800$2,160 $3,240 Total Profit$9,350

When Do You Give the Referral? After you get it? After your project is booked? After your project is billed? Timing is critical…

The most important part is getting the Project Information Sheet Filled Out EVERYTIME! Leave it with them while you calculate the estimate – You must collect it! Interview them at the point of sale They will not do it “passively” on their own Can only work “in person” If ing or mailing, you will have to bribe them…

DO NOT LET IT DEVOLVE! People get lazy People get comfortable The rules get bent The rules get broken Purpose gets forgotten The group fails to function It becomes a waste of time for the sake of referrals

Questions?