An Outline of Referral Marketing: How Ambassadors Market Products Via Referral Marketing

With a growing, global Internet market and increasing competition related to a declining economy, as well as an increase of the number of marketable products, developing unique methods of marketing is important. Word of mouth, or referral to others by word of mouth, is important in marketing and sales  

What is referral marketing?

The article, “How to create a referral program in four steps” on buzzforces.com offers a basic outline for referral marketing.  These steps include deciding upon “an ambassador recruitment profile”, creating “offers your ambassadors will recommend”, working out “how to reward sales referrals” and engaging, as well as retaining “your best performers”.  

Interestingly, this outline for referral marketing is unique in that it avoids the use of words like sales person or sales people, as well as that of marketers. Instead, the word ambassador takes on a higher sense of international principles and practices.

According to businesscourier.com, the expression brand ambassador refers to “a diplomat, a representative of an organization, institution or corporation that best portrays the product or service.”  

Referral marketing strategy entails recruitment of appropriate marketers (sales people). There is an ongoing need to develop products for potential recruits to sell. To encourage effective referral marketing, recruits need incentive or reward programs that serve this purpose. Screening, selection and retention of top recruits helps ensure ongoing marketing success.

Many business owners are currently expanding their business plans to include global horizons via referral marketing. In an effort to meet increasing supply and demand because of the Internet, appropriate strategies for referral marketing on an international level become increasingly important. No referral marketing strategies are identical as each marketing strategy functions in a way that is most appropriate for particular products or product lines.

Brand ambassadorship on a global platform, requires innovative strategies for recruiting, training and creating incentives for potential marketers, first within a business, but then in a new region or country. They in turn, become the new brand ambassadors who train others.

Diplomacy is extremely important in referral marketing. The development and institution of ethical strategies and relationships, both internally and externally, ensure the success of that business. Appropriate product brands identify the source of the product or products marketed by brand ambassadors and thus, high standards of quality and excellence are important in branding.

This basic outline pinpoints the key factors in referral marketing. While there are no limits to referral marketing or its infinite strategies, word of mouth is central in terms of rapidly expanding horizons of possibility.