Yodle helps companies drum up new business by managing online advertising campaigns, such as through Google (NASDAQ: GOOG), Yahoo! (NASDAQ: YHOO), and other ad networks.
And Yodle has continued to grow despite the recession. In fact, the company has attracted venture capital from top firms like Bessemer Venture Partners, Draper Fisher Jurvetson, and JAFCO Ventures.
How does Yodle do it? One reason is referrals. Actually, about a third of Yodle's revenues come from referrals. In all, the company pays $200 for each new customer.
So, can your company do the same? Well, I had a chance to talk to Yodle's CEO, Court Cunningham, to get some insight on the matter.
Ask: Simple, huh? But it's surprising how many companies don't ask for referrals.
Setup a Referral Program: Put together a one-pager on this -- and perhaps turn it into a brochure. You can also make it a separate page on your website, where you can have an input form.
Also, you should offer some type of reward. For example, you can give the person free credits for the service or a discount.
And, of course, cash rewards work very well. In the case of Yodle, the $200 fee is based on what it typically costs in marketing to get a new customer.
Make Referrals an Integral Part of Your Company: Highlight the program in e-mail. Talk about it at mixers.
Use some caution, though. For example, when asking for a bill, do not also ask for a referral.
Resources: Finally, there are some good resources to help out, such as Endless Referrals, Third Edition
Tom Taulli is the author of various books, including The Complete M&A Handbook, You can reach him at his personal blog.
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