Hedging Your Bets. Is it worth it?
As Britain is going gambling stir-crazy with the announcement of the new Super-Casino to be built in Manchester, I'm sat here left wondering how many entrepreneurs take unnecessary risks in their business. They take gambles on business projections that they would never apply into their everyday lives. Or the opposite by hoping that their business would grow by Osmosis.
Let me give you an example. I was coaching a business client, Susan, earlier today on what Referral Strategy to implement into her new business partnership. She'd just got a deal to coach 40 people in sharp bursts over 4 sessions over the period of 12 months. I asked her how many referrals will she be asking for from each coachee each time. She wasn't. She didn't feel it was right to ask clients for referrals when they are being coached. Nonsense. Deep inside Susan knew better.
So we did the maths. (We'll use round numbers to avoid complicating things. Actually to avoide confusing me!) Susan's coaching time would have generated £20,000. Not bad for coaching, huh? She also had an affiliate deal with her strategic partner who hired her for the coaching. For every client Susan would create by referral, she would £500. If she asked and only got 1 referral from each coachee per quarter that turned into business, she would have brought in 160 new clients. That amounts to £80,000 worth of referral fees. Pretty amazing, me-thinks!
So Susan would earn four times as much from referral fees as she would as a coach. All the coach did was ask for one high quality referral (preferrably 3 or more) from each client everytime she met. How difficult is that? What about you? What's stopping you from asking for referrrals? Is the price of NOT asking worth paying? For Susan the cost would have been £80,000. That's money left on the table. Money left on the table can never be retrieved. How much money are you willing to leave behind?
Until next time, have an amazing week!
The Persuader
Let me give you an example. I was coaching a business client, Susan, earlier today on what Referral Strategy to implement into her new business partnership. She'd just got a deal to coach 40 people in sharp bursts over 4 sessions over the period of 12 months. I asked her how many referrals will she be asking for from each coachee each time. She wasn't. She didn't feel it was right to ask clients for referrals when they are being coached. Nonsense. Deep inside Susan knew better.
So we did the maths. (We'll use round numbers to avoid complicating things. Actually to avoide confusing me!) Susan's coaching time would have generated £20,000. Not bad for coaching, huh? She also had an affiliate deal with her strategic partner who hired her for the coaching. For every client Susan would create by referral, she would £500. If she asked and only got 1 referral from each coachee per quarter that turned into business, she would have brought in 160 new clients. That amounts to £80,000 worth of referral fees. Pretty amazing, me-thinks!
So Susan would earn four times as much from referral fees as she would as a coach. All the coach did was ask for one high quality referral (preferrably 3 or more) from each client everytime she met. How difficult is that? What about you? What's stopping you from asking for referrrals? Is the price of NOT asking worth paying? For Susan the cost would have been £80,000. That's money left on the table. Money left on the table can never be retrieved. How much money are you willing to leave behind?
Until next time, have an amazing week!
The Persuader
posted by Harun 'The Persuader' Rabbani at 7:49 pm
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