Someone could use a particular product and like it so much that he or she decides to tell his or her family members and friends about it. This adds up to advertising and marketing. This type of advertising is called referral marketing. This has been going on for time immemorial as it only seems natural for someone to refer to his or her friends a particular product.

However, there have been increasing instances in which companies pay people, some of who are not even staff of the company, to do this kind of advertising for them. There are some principles that should be observed when doing this kind of marketing. Such principles are explained below.

The first way to succeed with this kind of advertising comes in being positive about the product and improving its qualities. This is the surest way to get this type of advertising going on. If there is a particularly outstanding quality of a certain type of product as compared to other products, this is definitely bound to get people talking. When this buzz is created, one person will tell another and the other person will tell another and the chain will go on and on.

The other way of effectively achieving this is by making sure that the people who do this type of marketing are well taken care of. They have to be paid well enough for them to keep talking positively about the product. Without this, they are likely to lose the enthusiasm of singing the products praises.

There are several ways in which this can be done. They can be told that they will be paid for every unit of sales they make. This means that the more sales they make, the higher the returns they receive. Another way in which this can be done is by giving them discounts. By telling them that for each unit that shall be sold through their efforts, they are going to receive a discounts on the same product the next time they buy it.

Another important tool that can be used when it comes to these referrals is the use of email messages. One does not need to employ people to go to the streets and shopping malls to tell others how good the product is. One can do this from the comfort of ones home by simply using the internet to send emails. However, this should be done carefully.

It is important for one to be careful when sending such emails. Many times, these emails are usually blocked as spam mail. It is therefore important to use genuine email addresses that do not contain the name of the company. The best qualities of product should be the main things talked about in these emails.

Whatever one does in this type of advertising, they should make sure that they uphold the reputation of the company. This can be done best by top management taking care of the staff who are involved in this type of marketing. They are the brand ambassadors and as such, they should be taken care of thoroughly well. The moment a member of the referral marketing team is wronged, a big problem could arise, he or she could pass on negative information about the organization.


Source : By Dr Len Schwartz,About the Author:



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