After getting back from an amazing trip to South East Asia I took some artwork from Cambodia and Vietnam in to be framed at a local store.

I had been recommended to this particular store by not one but two of my friends and after seeing the work they performed I know why, it was total quality and very impressive.

What surprised me though was that as I was discussing my order with them – I mentioned these two friends who had so glowingly referred me to this business. The reply I got basically amounted to “that’s nice”.

Now what they could have done in this instance was ask me one simple question that I believe would have a lasting positive impact on their business and their bottom line. They could have asked me just who it was who had referred them.

They could have sent them a thank you card or called and thanked them personally or sent them a discount voucher for their next framing. Something… (anything) to let them know that they appreciated the referral.

When someone refers a friend to your business - that’s advertising dollars you haven’t had to spend, because you’ve just got yourself a walking talking billboard going around advertising your business! What you do to thank them for doing your marketing for you can act as a megaphone or a muffler – which would you prefer?

I got turned into a megaphone when a local airline newspaper published a list of my favourite restaurants in Launceston. The savvy owner of one – Sara from the divine Novaros - sent me a gorgeous bunch of orange roses to thank me for mentioning them (and I haven’t stopped mentioning them since!)

Kirsty Dunphey is one of Australia’s most publicised young entrepreneurs and is the founder of http://www.reallysold.com - the ultimate tool to help real estate agents write amazing advertisements. The youngest ever winner of the Australian Telstra Young Business Woman of the Year award, Kirsty started her first business at 15, her own real estate agency at 21, was a self-made millionaire at 23 and a self-made multi-millionaire at 25. For more information on Kirsty or either of her books – Advance to Go, Collect $1 Million and Retired at 27, If I can do it anyone can, or to sign up to her weekly newsletter head to: http://www.kirstydunphey.com

What's easier: marketing, advertising or cold calling to get a new client or having a new client call you directly? Most people would intuitively and correctly say - having the client call directly. What could be more simple than having the business walk right up to you and say "take me!".

The next vital steps when a potential client calls you directly should be:

1. Ask how they found out about you. Many times these people will have been referred by someone to you. The referrer could be a previous happy client, a friend, a family member or simply someone in your sphere.

2. Acknowledge the referral. I don't particularly care how you do this, just make sure you do it and do it immediately! If someone has taken the time to favourably speak about you to someone then the least you can do is pick up the phone and say thank you. Perhaps you might send a thank you card. If the referral warrants it - maybe a small token of your appreciation like a gift.

Take real estate agents for example, a referral of a client to them can mean thousands of dollars. Don't be the person who doesn't bother to find out where the referral came from. Even worse, don't be the person who knows but does not acknowledge it.

The call you should always try and avoid is the one where a referrer has to ask you if you received their referral. It's insulting to the person who referred the client that you haven't thanked them and it's no way to ensure they'll continue speaking in such glowing terms about you!

Reproduced from Kirsty Dunphey's weekly email - subscribe by heading to www.kirstydunphey.com