Referral Sources

I recently received an email from a student asking how he could work this business without court case leads.  In responding, I realized it has been a while since I discussed referral sources here.  Below is a copy of my email response:

My best sources for business outside of court cases come from 3 basic groups:

1.    Bankers (blog entries dated 6/10/12 and 9/24/08)

2.    Business Brokers (blog entry dated 6/23/08)

3.    CPAs / Bookkeeping Services

These folks are in a unique position to know of businesses experiencing financial difficulties and are also usually pleased to know about my service as a resource to refer their clients.  I suggest you get your practice set up first with business cards, brochures and at least a basic website before initiating contact.  As an aside, I do request you not copy any of the content from my website(s).  I have spent a great deal of time, money and effort over the years creating an individual and unique Internet identity for my company.  Related Web sites are constantly monitored and copyrights are strictly enforced.  If you choose to create your own Web site (as I highly recommend), please ensure your content is original and not simply a rewording from my site(s).

Once your practice is set up, you can research contacts in these 3 groups via the Internet and through some phone calls to get individual names so your marketing can be personalized.  Send a brief letter and / or email informing these professionals of your service and emphasize your “no risk” ability to assist their commercial clients with problem debts.  A follow-up phone call within a few days of this contact to provide a little further explanation or even to schedule a meeting is helpful.  The more professionals in these groups you can contact, the better your chances of getting referral business.

I also suggest you contact any factoring companies in your area (blog entry 7/15/08).  There may only be a handful but they can be a great resource for referrals in both directions which may result in sizable referral fees to you.  Use the same method to contact these folks as with the other professionals.

Building your practice only through referrals can take a little longer but is integral for anyone in this profession even if court cases are available.  Be patient and be persistent.  Once you develop a broad base of referral contacts, the cases should become steady.

 

Scott F. Soape