Gaining new clients through referrals is universal across the financial services industry. Any financial professional will tell you they get their business through referrals. So why not make it a part of your marketing strategy as an ISO?

Many ISOs are still operating on an “old school” sales approach of dialing for dollars, email marketing to massive purchased lists, and pledging their allegiance to The Law of Numbers. But financial marketing expert Mike Langford believes referrals should become a valuable part of your business, and here’s why.

According to a study by Nielson, prospects are four times more likely to buy from someone they have been referred to by a friend or family member. Four times! Think about that – if a two new leads came in, one from a referral and one from your web form, the one from the referral is four times more likely to convert than that one that came in through your website. That’s some powerful odds!

The reason behind this is simple: when a lead comes in via a referral, the referrer (recommender) has already warmed up that lead. They’ve done the base level pre-qualification for you by being familiar with MCA and thinking that this other business owner they know would be a good fit. By the time you see the new lead, they most likely already have an idea of how an MCA works.

Fostering referrals creates a win-win relationship between you and your referral partner – especially if you offer a referral fee (which you probably should). Even if you’re paying a fee, it will most likely cost you less than a deal acquired via another channel like social media campaigns or Google. Especially when you pay the fee only upon the successful completion of the deal.

For more information on referrals and why they’re great for MCA, check out our full webinar “How to Create a Steady Flow of Referrals for Your ISO Business . If you have any suggestions for future webinars or would like additional marketing information for your ISO business, email [email protected] anytime.