Showing your appreciation for a referral is one of the best forms of motivation that exists. People who go out of their way to voluntarily tell someone about your business are generally motivated to do so because they like doing it rather than expecting something in return, but a simple thank you, or the more elaborate flowers, candy (9 Burdick Penguins in a wooden box), coffee and hand-written note of thanks are all in order.

However, in addition to this I suggest that one of the best ways to thank a referral source is to also do it publicly.

Where appropriate, acknowledging your referral source’s activity on your behalf publicly can prove quite powerful in terms of motivation. Almost everyone enjoys a little pat on the back for being a part of your team and I believe doing this in the right forum has several other benefits.
1. Your referral source feels very appreciated and socially validated
2. You reinforce your organizations’ referral worthiness
3. You display tangible examples of referral partners
4. You demonstrate your appreciation for the relationship

The flip side of this idea is that you should also consider making referrals publicly as part of the entire cycle. By letting people know the kinds of business you deem referral worthy you:
1. Show what think quality is
2. Provide more leads for your referral partners
3. Share resources that benefit your customers and prospects
4. Demonstrate how highly you value referrals

There are many ways you can go about promoting your referral activity publicly. You can add a referral box to your newsletter, create a referral news page on your website, promote referrals in your blog posts, or tweet it to your followers on twitter.

Image source: bandita

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