How To Start A Home Based Referral Service Business
By Debra Cohen
If you're looking for a profitable and rewarding home based business, then starting a
referral service is a great option! Referral services can be operated on a part-time or full
time basis, they don't require a lot of start-up capital or overhead and the majority of your
business can be generated through networking and word of mouth.
Your first step is to determine who you want to refer. If you're passionate about decorating
or home improvements, perhaps you'd like to start a contractor referral service. Or, if
you're a teacher or retired educator, you might want to consider a tutor referral service.
When choosing the type of service providers you'd like to refer, don't just consider your expertise
but also keep in mind the needs of your community. Is there a growing number of seniors in
your area? A thriving home improvement market? Are there a lot of young families moving in?
Next you need to research what the state and county licensing and insurance requirements
are for the service providers you're going to refer and then use that information to create
a thorough screening process. Each of the contractors in your network needs to be properly
vetted to ensure the highest level of customer satisfaction.
Your next step is to determine how you'll get paid. Do you want to charge the contractors
you refer or your clients for your service? Will you charge a flat monthly fee or will your
service be commission based? Or, would you prefer to be paid per lead? To determine which
compensation model will work best for your business, you should research similar referral
businesses in your industry. Also speak with a few industry professionals to get their feedback
on what type of compensation is fair and⁄or customary in your industry.
Once you've assembled a network of providers to refer, you'll need to determine who your
potential customers are and how you will reach them. Start by creating a market segmentation
study and identify key characteristics your ideal customers. For example, where do your target
customers live? Is your prospective client male, female or both? How old are they? Are you
targeting young families or seniors?
In order to promote your business to a wide audience, you'll need to communicate with
customers online and offline. A well designed website with concise and informative copy is
a must. You can also participate in online social networking sites and communities, start a
blog or a monthly e-newsletter to help boost web traffic.
Offline promotional campaigns may include direct mail to your prospective customers,
advertising in strategic publications and public relations to generate press attention about
your business.
And, networking to build word-of-mouth referrals is another great way to generate buzz
about your referral business. Investigate local trade organizations and networking groups in
your area where you can meet other industry related professionals who can refer clients to you.
If you're outgoing, enjoy helping people and think you have what it takes to succeed
in the referral service business, don't hesitate! With low overhead and substantial financial
rewards, a referral service is an ideal home-based business!
Interested in starting a home improvement contractor referral service? The Homeowner
Referral Network (HRN) business has been featured in Good Housekeeping, Remodeling, Working
Mother and Entrepreneur magazines to name a few. If you're looking for a viable home based business
with low overhead that offers a flexible schedule, an excellent income with complete training
and support, check out
Homeowner Referral Network for more information.
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