How to Set Up and Scale Lucrative Lead Gen Partnerships

Technology has changed the way buyers interact with sellers. Customers have an endless supply of information at their fingertips which allows them to educate themselves prior to speaking to a sales rep. This has led to the decline in advertising’s efficacy. Less than a quarter of all Americans trust print advertising, and even fewer trust digital marketing.

In order to make up for the shortcomings of traditional advertising, companies are increasingly turning to referrals to pick up the slack. One study shows that 92 percent of all consumers trust referrals over advertising. If you want something that drives immediate business, nothing is more effective than a positive customer referral.

The trick is finding ways to earn more referrals. By now, you should know how important it is to actively ask your existing customers for referrals. What you may not have already thought of, however, is taking a more proactive approach by setting up lead generation partnerships with other companies. Two ways you can do this are:

1. Build partnerships with complementary businesses

The easiest partnerships you can make are with businesses that complement your own. Take the time to think about your customers and how they use your goods and services. Are they using your company as part of a specific goal or strategy? If they are, what companies are they reaching out to first? These are the companies that you will want to target.

One good example is a mortgage loan officer partnering with local realtors. People need mortgage loans when they buy houses, so they will be working with realtors during the home buying process. Building good relationships with like-minded vendors will keep a steady stream of business flowing in.

You should try thinking outside the box, too. If you are a company that provides IT services, you could reach out to local commercial building owners. New tenants need help setting up new IT infrastructures and you will be able to assist.

2. Set up referral arrangements with direct competitors

At first glance, approaching your competition to ask for referrals may seem like an attempt at self-sabotage. After all, they are not going to send their leads your way, and you do not want to send any of yours over to them. When you consider how business is done, though, it actually makes sense.

Your business is not a perfect fit for every customer that comes your way. You might not have a specific feature that they need, or their needs are a bit too big or too small in scope for your capabilities. No matter what it is, you are not going to be able to effectively service them. Due to your industry experience, though, you probably have a good idea of who can.

You should reach out to competitors that cater to customers with slightly different needs, and set up a referral program based on specific criteria. When you have potential customers that are not a good fit, send them over to your competitor’s sales team, and vice-versa. Of course, you can and should continue to compete for customers who make sense for both of you.

A hidden benefit of these partnerships is the relationships that develop between you and the prospects that you refer. You are showing your integrity by admitting you are not a perfect fit and pointing them towards a competitor that is. They will remember this, and you could capitalize on this rapport to secure their business in the future, or get them to refer other potential clients your way.

How to manage fruitful, long-term partnerships

Managing partnerships is just like managing any other business relationship--it takes time and strategy. Here are some ways to make sure you are building successful partnerships:

• Give back. Offer something in return, whether it is a finder’s fee, commission, or referrals of your own.
• Be judicious. Do not partner with just anyone as their reputation will reflect on yours.
• Explain your ideal client. You do not want to waste time with referrals that are low value or a bad fit. Carefully describe the type of referral you are looking for.

Lead generation partnerships are tricky to set up and manage, but are invaluable once you have them. If you are able to develop referral-based relationships, you will enjoy a constant stream of prospects that are eager to do business with you.