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Defining your target audience is essential to the success of your marketing efforts.

But I'll take it a step further. Even if you have no intention of marketing, before you set up your business, you need to know who your target audience is and what that audience wants.

It's not just about creating a product or service that you think fills a gap in the market. You need to understand why. What pain points does your business solve? What research have you done? What data have you collected to back up your theories? Without this key information, you can't be sure you're adequately targeting the right audience.

So let's review the definition for a target audience.

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What is a target audience?

A target audience is the niche group of people most likely to buy your product or service—aka potential customers.

Defining a target audience is a crucial phase in your marketing strategy. It’s the foundation on which your marketing is built. Target audiences determine the message or content you create and the media channels you advertise in, so getting this wrong can massively affect your marketing efforts.

Here's a few examples of a target audience.

One of Zoom's target audiences is small businesses and large enterprises with a global workforce. But during the pandemic, the brand saw the need to assist educators. So they pivoted and expanded their target audience. Now Zoom also targets education customers (e.g., schools) and healthcare educators (e.g., telemedicine).

Target audience vs. target market - is it the same?

There's a ton of confusion surrounding the question, “What is a target audience and how does it differ from your target market?” Many marketers use them interchangeably, but they're not the same. Your target audience is a niche or narrow version of your target market. So your target market is the broad group of people whom your business serves.

For example, my target market is small business owners and entrepreneurs investing in marketing.

My target audience is business owners struggling to build out a marketing plan and successfully implement it to get results. As you can see, I've chosen a very specific audience.

If you need help finding your niche, check out this article on niching down.

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Why you need to define your target audience

Correctly defining your target audience impacts every marketing campaign you create, the social media channels you choose to advertise in, the blog posts you write, and the content you deliver to your audience.

There are two common roadblocks to business success:

1. Targeting everyone doesn't work.

So many business owners make the mistake of trying to find people for their products. In advertising, we call this mass marketing. There are three reasons why this approach doesn’t work:

1. You don’t have enough firepower (money and time) to win at mass marketing. Big brands like Coca-Cola use this kind of marketing, and they’re over 100 years old. Also, their net operating costs for 2020 totalled $33 billion, So that gives you an idea of the kind of money you need to be making.
2. Saying something is for everyone essentially says it’s for no one. In a cluttered marketing space, you have to stand out. And the only way to do that is to be hyper-relevant.
3. Specialists are more sought-after than generalists. By niching down, you make price irrelevant.

So even if your product or service is perfect, universal, or all-inclusive, you’ll never get everyone to buy from you.

2. Unless you've been a part of your target market, you don't really understand them.

Unless you are or have been a member of your target audience, I guarantee you don’t know them as well as you think you do.

You don’t understand their dreams, hopes, struggles, and motivations. You don’t know what makes them tick.

And in a highly crowded and competitive market, really knowing your target audience is your best shot at success and profitability.

Think about some of your best friends. You know what they’re thinking and feeling, how to make them laugh, and how to  get their attention. The same thinking can be applied to your target audience.

Because getting inside their heads is going to dictate any messaging your business creates. If you don’t know whom you’re talking to, you're not speaking to them properly, and they won’t pay attention.

That equals wasted dollars. You might as well cash in your marketing budget and flush it down your toilet.

It's not just about knowing who your target audience is. It’s about understanding why they buy.

How do you define your target audience?

Most people or online marketing posts will tell you to focus on audience demographics.

They’ll tell you to define your target audience in terms of their age, gender (male or female), income, education level, marital status, and other aspects of their lives.

Gathering this data is a vital first step in the audience research phase, but it doesn't reveal their pain points or interests. It's not going to give you insight into their daily lives, the challenges they face, or what drives their decision-making process.

Without audience insights, it's nearly impossible to create a targeted marketing campaign. If you don't know them, you don’t know:

• What message will get them to click on your brand ads
• What media channels to advertise in
• Which social media networks to use

Do these 4 things to find your target audience:

1. Conduct market research.

The goal of market research is to understand who your target customers are and what they like. You'll start with demographic information such as age, gender, location, race, sex, religion, whatever. This answers the who, but it doesn't cover the why.

Next, you want to figure out:

• What social media posts do they like? When are they most active online?
• What ads do they engage with?
• What stresses them out?
• Where do they prefer to shop and why?

You can use google analytics, focus groups, email surveys, and social media channels to gather these vital audience insights.

The point of this exercise is to collate comprehensive data that you can use to inform your decisions. For example, it may reveal that your audience is most likely to engage with social media challenges.

2. Use creative storytelling to build a clear picture of your target audience.

Create a detailed picture of your target audience using the data you gather in the market research phase. This is a customer avatar, but to cut to the chase, I'll use personas.

Identify at least two personas with actual wants and desires.

Choose a photo for each persona. (You’ll have to visualize them in your mind if you're selling to them in the future.)

This persona needs to cover demographic and psychographic information, for example:

• What's their name?
• What's their age?
• What gender do they identify as?
• Where do they live? Be specific.
• What's their education level?
• Do they have kids? Pets?
• What's their life circumstance? For example, did they just get married or buy a new car? Are they a student? Whatever.
• Where do they work? For example, do they own a business? Are they a CEO or a stay-at-home-parent?
• What stresses them out?

Your goal with each persona is to be as detailed as possible. For example, if they went to university, tell me which university they went to, why they chose that school, what informed their decision, and what goals they wanted to achieve.

And don't forget that throughout this process, you want to ask yourself, Is this the type of person who would choose my product over competitors?

3. Think about your audience’s decision-making process.

What makes one person choose between two similar products? Is it price, packaging, product name?

Consider these examples: Patagonia, Burton, and Costco. All are quality brands, but they have very different values which align with their various target audiences.

While a Patagonia buyer prioritizes social responsibility, a die-hard Burton fan prioritizes trendiness and being cool. This contrasts with a Costco brand evangelist who prioritizes value for money.

So buying behavior is something you need to care about.

• How do they think through a purchase? Where do they consult? For example, do they follow influencers on social media, Google reviews, or ask their tech buddies?
• What do they prioritize? For example, do they have a built-in bias in the way they made this decision?

If you don’t understand your target audience’s decision-making process, it’ll be harder to address their pain points, and you won’t attract qualified leads.

4. Refine and repeat your target audience analysis.

Defining a target audience is an iterative process. This exercise is never done. You'll continue to tweak and clarify as you learn more about your target market through conversational sales, and as you add new products and services.

How to find your target audience

Now let's get into the audience research phase. This is the process of finding your target audiences. And here, I want you to think about infiltrating your industry.

You'll use your existing customers and compile data from media, demographics, online content, and social media channels. The point is to form an image of who your audience may be, what interests them, what challenges they face, and what message you need to create to get your target audience to self-identify.

You also want to be able to answer the following:

• What apps are they on all of the time?
• Do they prefer watching short TikTok videos over lengthy Youtube tutorials?
• Are they more likely to watch your live stream on Facebook or Instagram?
• When and where are they most active on their phone? For example, are they most active around 8 or 9 pm when they’re in bed or on lunch break at work?
• What websites do they visit?
• What do they Google?
• Are they into the latest trends or bargain hunting?
• What matters to them most? Is it family, status, jobs, travel, music?

Here's how you can begin to infiltrate your audience and build out your personas:

Step 1: Complete the PVP Index.

Using the PVP Index helps identify the target audiences you want to work with and those you don't. Remember, not all consumers are your target audience. The wrong customer can impact not only your sales but also your team productivity and happiness. So it's vital that your campaigns are targeting the right customer.

Here's how to get started. Look at your current pool of customers and answer these three questions:

• Who do you enjoy working with the most?
• Who most values your product or service? How are you different from competitors? Why do these consumers love your brand?
• Who is most profitable? Which customer is willing to pay top dollar for your products or services?

Answering these questions will help you to define your ideal target audience.

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Step 2: Use Facebook's Business Suite Insights.

Social media giant Facebook has recently transitioned from Audience Insights to Business Suite Insights. You can use this tool to review audience data and view performance trends and metrics across Facebook and Instagram.

So you'll be able to see:

• Demographic data (age, gender, location, education level, job industry, relationship status)
• Interests - pages they have a high affinity for (Page likes on Facebook only)
• Followers (Instagram only)
• Top cities and countries
• Device preference
• The frequency of their Facebook activity, including page likes, comments, shares, clicks on ads, and redeemed promotions

This helps you get an idea of what your existing target audience is into. Once you've done your audience research, you need to review your findings and make sense of the data.

For example, if your target market is 30-45, female, married, has a degree, and lists director or CEO as their title, you can assume they’re swamped. Now, look at their most viewed pages. Around 70% shop online for groceries, clothes, and they order takeout three times a week. From this data, we can confidently assume this audience might value convenience and have little spare time.

This audience research is vital to building your personas. But we've only skimmed the surface. To go deeper, I like to use a tool called SparkToro.

Step 3: Use SparkToro.

Here's why I love SparkToro. It crawls the entire web and all social media channels so you can see:

• What your target audience frequently talks about
• The words they include in their profiles
• The social media accounts or brands they follow
• The content they engage with
• The websites they frequently visit
• The podcasts they listen to
• The hashtags they use

It also gives you access to your customers' top sources of influence as well as where they hang out. This audience insight will help you decide which brands to connect with so you can collaborate with them on ad campaigns.

I want you to remember that data is your friend. It’ll confirm or deny your hunches, so use it.

For example, say your audience—high-powered businesswomen—follow yoga influencers and listen to business podcasts specifically for female leaders. But, they’re also checking out websites on how to raise happy kids and manage work-life commitments.

This insight tells you they’re driven, and they take care of their physical and mental health. But life is more than just their career. These women also worry about their kids and how their work impacts them. So while they may be confident in business, home life offers a host of challenges.

Step 4: Survey your customers using an email Q&A form.

Surveys are a popular method for gathering data. Your business can use electronic surveys like LeadQuizzes or closed focus groups to get to know your customers better. The only problem with surveys as a research strategy is that customers tend to lie. Your audience may give you the answer they think you want to hear instead of a genuine response.

Nevertheless, if you choose to create a survey, remember to:

• Limit the number of questions (because no one has time to spend 10 minutes on a questionnaire).
• Focus on writing closed-ended questions. These are yes/no answers.
• Don't ask leading questions. This prompts the type of answer you're company is hoping to gain.
• Include an incentive of some sort. What do they gain by taking part?

Journalists love statistics, and the data from surveys can tie nicely into free press for your business. Still, you need to collect responses from a couple of thousand people in your target audience for it to be deemed credible. So I'd only use surveys if your goal is to create a report.

As an alternative strategy, I prefer to gain insight into my target audiences by focusing on my best customers. Which brings me to the next step.

Step 5: Engage your Favorite Customer or Client.

Interviewing your favorite customers is the best way to get inside the minds of your ideal target audience.

Perhaps you've tried mass-messaging your followers on social media. Maybe you got a ton of responses, but nothing that definitive. The problem is you’re appealing to an audience that’s too broad.

So when targeting your favorite customers, you're picking a small group of people who do business with your brand or company all the time. They love your product or service, but why? And this is what you need to gain insight too.

For example, I want you to find out:

• What do they love about you or your business? Did they talk about value or quality of service?
• What blew them away?
• What words do they use to describe themselves?
• What words do they use to describe you?

Remember, if they're your ideal client, they're automatically a part of your target audience.

Step 6:  Use Google Analytics to track your website's content performance.

Your website is an asset that does so much more than just promote your business. Combined with Google Analytics, you can quickly learn a ton about the audiences that visit your site.

For example, you can see:

• Which pages generate traffic
• What content performs well—for example, is your target audience drawn to video content or do they prefer written content?
• What topics (or blog posts) receive the most traffic
• Which pages don’t receive traffic
• Your audience demographics—age, location, the devices they use to access your site

So it's key to learning more about your target audience, what topics to cover in your ads, campaigns, and the content you need to be creating.

Step 7: Analyze what your target audience is saying on social media.

Do you use social media to reach your target audience? What type of content do you post? Do you notice similar patterns to the conversations you have with your audiences?

Social media is a great way to collect data. It's fast and easy to engage with your audiences, and you can target your ads or surveys to reach a specific demographic or group of people.

Look, it's virtually instant feedback, so make it a key component of your research.

Step 8: Read your online reviews.

In 2020, Trustpilot reported that 9 out of 10 online shoppers read reviews before buying a product. And they're not only reading reviews about your company. They’re reading the reviews of your competitors.

For your target audience research, you want to read your 1-star and 5-star reviews. Again you'll learn what consumers love about your product or service and what they hate. You can use this insight to make meaningful improvements.

Step 9: Join a forum or browse SUBRedditS.

Reddits posts some interesting content from across the world. Many forums are also open to a global audience, so you're able to gain invaluable insight into your brand or company. This is particularly important if your consumers are located across the world.

Remember, when we speak about targeting, your ads need to be relevant and sensitive to the region it's been shown in.

Here are two examples to consider.

H&M's disastrous children's clothing campaign. Remember the Coolest Monkey In The Jungle? It showed a white boy wearing a tiger jersey and an African boy wearing a monkey.  Consumers were outraged by the decisions made by the marketing team and riots occurred in some South African H&M stores.

And in South Africa, Clicks Pharmacy ran digital ads comparing a white woman's “normal” hair  to an African woman’s  “frizzy and dull” and “dry and damaged” hair. These digital banners didn't just land the retailer in hot water, they caused the brand to be pulled from all stores countrywide.

Consumers are sensitive to the messaging your company puts out there. You can sink your brand if you're not careful.

Stop guessing and start knowing your target audiences.

And that's our complete guide to understanding your target audiences.

We've covered:

• The definition of target audience
• How to use demographics to inform the personas of your target audience
• Various ways to research your target audience
• Why data is key to inspiring and creating meaningful content and targeted ads
• Examples of target audiences

Now it's time to define yours. To help you get started, we've put together a target market challenge. It's going to take you through the process of identifying and understanding your brand's audience.

I speak to business owners from all over the world every day. Most have grown their companies through referrals. Do a good job, and you'll get more business, right? But what happens when things stagnate?

Referrals are a vital part of your marketing strategy. They build customer relationships, lower your customer acquisition costs, and it's a great way to get new customers. But they're random at best.

Not necessarily. There a way to get customers or clients to consistently refer your business to friends and family? You just have to ask. So why don't more businesses do that?

Why businesses don't ask for referrals

Most companies don't ask for referrals because it looks like they're asking for a favor. But think about the last time you referred a business to a friend or connection.

You didn't do it for the business. You did it because you had a great experience. Maybe the product changed your life, or the service was top class. You know it'll benefit your friend or network connection so you refer them.

Referring elevates your status. But you're also risking your good standing with someone. Especially, if the company you're referring do under delivers.

But there's an art to asking for a referral without sounding desperate or pushy.

In this blog, I’m going to cover the right way to ask for a referral through different mediums. Follow these top tips and my email template and you'll consistently attract new business.

What is a referral?

A referral is the act of actively sending someone to a business or expert you believe can solve their problem.

For example, a doctor might refer you to a specialist, an architect might refer you to  an interior designer, a friend might recommend a movie or restaurant, and a colleague might refer you for a job.

Why do Referrals work?

Referrals work because they're coming from a trusted source. This is most likely someone who has experienced your product or service. They've engaged with your business, they know you, like you, and trust you to deliver results.

Most people won't question the referral. They just accept it as a given fact. If you can leverage someone else's relationship, that's powerful.

In the event that people don't have a trusted source, most consumers will research a product or service online before purchasing it. They might read customer reviews, or product reviews by industry publications. They'll probably contact a salesperson to explain the benefits.

It's a far lengthier process and there is no guarantee they will buy.

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Implement a Referral Program

Customer referral programs are a systematic approach to generating referrals. Unlike word-of-mouth marketing, you're using referrals as an active part of your marketing strategy.

The truth is, a word of mouth referral is a lot like getting invited to dinner. Sure, that’s one night you don’t have to worry about cooking but it’s not going to pay your bills or keep your lights on.

You need to systemize your referral process. If you don't, you may ask for a referral from two or three customers, but there's no guarantee that they'll do it for you and no guarantee that you’ll consistently keep asking.

So to be guaranteed a pool of new clients, you'll need to build a referral program.

Unlike other ways to ask for a referral where you only send a thank-you note or whatever, a referral program is built with rewards and incentives.

Here's the step-by-step process for building your own referral marketing program.

Step 1: Offer a referral reward that your customers want.

Think about it. What's that one thing that your customers want? What referral reward would entice to talk about your business to friends, family, colleagues and clients?

It might be a discount on their next purchase, a gift voucher, a freebie, or other rewards that buyers don't typically get.

It doesn't have to be an expensive offer, but it should be something that your customers will find useful and valuable.

Step 2: Clearly explain everything about the referral program.

If you want your existing customers to participate in your referral marketing campaign, they’ll need to know how it works.

• What are the terms and conditions of the referral program?
• What do they get out of it? People won't refer you because you ask nicely. Their reputation is on the line. So make sure you deliver a stellar experience.
• How many referrals do they need to give in order to get an incentive?

Focus on the what, why, and how of the referral program. Lay out all the information clearly on a landing page, or on whatever platform you'll use to promote it. This clears up any confusion customers may have.

Step 3: Promote the referral program to your network.

Of course, people need to know that you're launching a referral program, so you need to promote and advertise it.

Think about all the channels your customer base and target market use. Are they on Facebook, Twitter, or Instagram? Or do they typically use LinkedIn and other B2B platforms?

You need to make sure that you're reaching as many customers as possible.

Step 4: Track referring results

As you launch your referral program, make sure that you've set up your analytics. You need to know how many people are aware of the referral program, where they've seen your campaign, and how many are participating.

Most importantly, track how many referrals you're getting regularly. This will tell you if the campaign is effective, or if there are some areas that can be further improved or optimized.

Step 5: Be consistent

As I said, your referral program is an active part of your strategy. Be consistent with it. Instead of acquiring new customers through other forms of marketing tactics, this is a much more cost-effective route.

Sample email referral request:

Hi (FIRST NAME),

I'm X, just emailing because (personalize to why you like what they do).

I'm (designation) for (company name with hyperlink), and this is exactly the kind of thing/product our members read/use and love too.

So, I just wanted to see if there's any chance for us to work with you?

I'm not 100% what that would look like yet (sponsorship/partnership type stuff), but keen to see what's possible.

Would you have time to chat at some point? (email, dm's, zoom, phone - whatever works for you)

Best,

(Your name)

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Send an referral email request when onboarding new clients or Customers

There's a misconception that you have to finish a transaction before you ask for a referral. This isn't true at all. It's acceptable to ask for a referral even before a project starts or a customer buys from you.

You can even use this email referral template as a reference. This is something you can send along with your quote or it’s a card you can give in person to the client.

How to ask for a business customer referral:

Mr./Mrs. Customer,

I’m going to do a fantastic job for you, but I do need your help. Much of our new business comes from customers who refer us. This means we don’t need to pay for expensive advertising and can, as a result, keep our service costs down. Typically, we get about three referrals from new customers.

When we complete the job, and you’re 100% satisfied with the work we’ve done, I’d really appreciate it if you could keep in mind three or more other people whom we could also help.

Now why does this referral template work?

First, you're direct about how you're striving to provide awesome results so you can get great feedback and referrals in return.

Second, this kind of communication builds trust. It puts your customer in power when they think a referral is only given once you've done a great job.

And lastly, you're creating an expectation of the number of referrals you'd like without being pushy. Simply put, it creates a win-win culture.

Use Social Media to ask for referrals

Referral marketing doesn't happen on its own. It needs to be promoted and showcased in different marketing channels—and mainly, I'm talking about social media.

There’s a huge chance your customer base can't live without social media. And they retweet, share, and save all sorts of info on social media, so use this to your advantage.

So here's how to ask for referrals through social media.

1. Use the right social media channels: There's a bunch of platforms to consider before embarking on a referral strategy. Chances are Facebook, Twitter, and Instagram are great places to start. But don't underestimate the power of platforms like LinkedIn, Pinterest, and TikTok. You want high-quality referrals. So think about where your customers hang out and are most active. Set up profiles on these platforms and start engaging with your audience. The bottom line is, use platforms that work best for your business.
2. Promote the referral program: If you're not sharing your referral program, how do you expect your customers to know about it? Use your website, social media and email to post about your referral program and promote its benefits to your followers. Or at the very least, put the link to the program in places where they can easily find it. For example, you can add it to your Twitter bio or IG story highlights.
3. Engage with your customers: Since social media is all about engagement, use the referral program to thank or reward customers. These work because people love to be socially validated and they love a good deal. If you give a public shout-out or show your appreciation to customers that refer you, more will be inclined to give a referral. And posting a TikTok video, IG reel, or a LinkedIn post about your referral program and sharing its perks will entice followers to get onboard.

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Manage podcast relationships to get referrals

Podcasts might be an underrated way to ask for a referral for your business, but trust me, it works. There are over 2 million podcasts out there, and any podcast with an active audience can help you get maximum exposure.

They also tend to be highly engaging mediums for spreading the good word about your business. Since podcasts are audio programs, listeners hang on to every word, making it effective for delivering messages.

If you're interested in asking for a referral through podcasts, think about the shows you want to be part of. And as you create a list of potential podcasts, consider these two things:

• Reputation: People listen to podcasts because they love the host, and the nature of the program. So you need to think about reputable podcasts that can spread the word about your brand.
• Target audience: Work with podcasts that have the same target audience as yours. This way you can reach more potential customers without all the leg work.

So now, what are the next steps when asking for a referral on a podcast?

1. Personalize your pitch: People know if your pitch is pre-templated or personalized. And, more likely, you'll get a response if you choose the latter.

2. Choose a topic you'd like to cover: Podcasts cover different topics per episode. So think about a topic you'd like to cover which is complementary to your referral program.

3. Set your offer: Podcasts also need more coverage, so offer to feature their episode, or better yet, incentivize them.

Ask for a referral using email

There are two different categories of referral channels: public and private.

Email is private; and people like it because it offers a personal experience. So now, how can you use emails to ask for a referral?

• Send emails to the right people: Referral emails don't get sent to your entire list. It doesn't work that way. Instead, you send them to your best customers—the raving fans—who already love your products and services.
• Send emails at the right time: Timing is crucial. Wait to long to send a referral email and you risk surprising your customer, and not in a good way. Make your customers aware in the onboarding phase that giving referrals form part of doing business with you. Then send a friendly reminder once they've made a purchase.
• Write your referral email: Use this framework. An enticing and attention-grabbing subject line. An offer or incentive that's too good to ignore. A clear call-to-action (CTA) that redirects them to join the referral marketing program or contact you.

Asking for referrals - make it easy

So as you can see, there are many ways to ask for a referral without sounding desperate. You can use your website, a direct mail, email, social media, whatever.

Building an effective referral program will massively benefit your company.

But it's vital you choose and apply tried and trusted methods when asking for a referral. Review the above referral options, choose the best solution for your business, work on maintaining your referral program, tracking progress, and making improvements along the way.

It might take some time, but as long as you're constantly asking for referrals through the right channels, you’ll continuously be connected with potential customers.

Do You Want to Grow Your Business Rapidly?

Then you need to market it. But not just any marketing will do. In The 1-Page Marketing Plan Course I show you the exact techniques I've used to start, grow, and exit several multi-million dollar businesses, so you can too.

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Referral marketing is a touchy subject for many entrepreneurs running small-to-medium-sized companies. Most business owners prefer to focus on delivering excellent service or high-quality products with the hopes it will lead to a word-of-mouth referral and an influx of customers.

But let's be honest. I know why you probably don't have the courage to ask your customers for referrals. You think asking for a referral makes you look weak and needy. And at the very least, it can affect the reputation of your business. I mean, if you're asking for referrals then you must be desperate. But this couldn't be further from the truth.

Referral marketing is a win-win strategy. You get free marketing for your business, a customer gets social validation (or a reward) for recommending your product or service, and their friend gets a recommendation from a trustworthy source.

It's time to break the misconceptions about referral marketing. You don't have to sit and wait until someone spreads the good word about your business. In fact, you can make it an active part of your marketing strategy. So in this blog, I'm going to show you how to do that.

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What is referral marketing?

Simply put, referral marketing is when you get your customers to recommend your products and services to their friends and families.

Compared to other forms of traditional marketing that are meant for the general public, referral marketing requires you to focus on your customer base in order to generate leads, and eventually, convert them into customers.

If you offer quality products and services, you likely have satisfied customers who would be happy to refer your business to other people. This is the core concept of word-of-mouth marketing.

Now, why not maximize the word-of-mouth and incentivize customers to get more referrals from other people? This is basically what a referral marketing program is all about.

Is referral marketing the same as word-of-mouth marketing?

Most resources will tell you that referral marketing is also known as word-of-mouth marketing, but each has distinct differences.

Word-of-mouth marketing is simple. It happens when a customer shares their experience with others and recommends your products or services. Businesses that are focusing on word-of-mouth are typically active on multiple media channels, finding ways to get people talking.

Word-of-mouth marketing works, but it's passive. A customer might be happy about your product or service, but there's no guarantee that they'll spread the word about it. It's not the most effective strategy out there, but it has its place in many businesses.

Meanwhile, referral marketing produces the same effect, but it's initiated and strategized by a business. It requires a program where customers can receive incentives and rewards once they refer the business to other people. Simply put, referral marketing is an ongoing and active strategy.

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Why is referral marketing effective?

Before I tell you more about creating a winning referral marketing strategy, I'd like to share why it’s effective.

Let's talk about the psychology behind a referral.

For a moment, put yourself in the shoes of a customer. Let’s say you can't decide between buying the iPhone 15 Pro or the iPhone 15 Pro Max. The salesperson comes forward to assist you, answers all of your questions, and explains the pros and cons of each model. Not only have they helped you make the best decision, but they’ve also given you a discount.

Now, you're amazed by their service, and you suddenly remember a friend who's about to upgrade their phone so you leave them a message, sharing your experience.

But let's be clear here. You're recommending the store, not because you want to do the company a favor, but because you want the best for your friend.

In the end, your friend thanks you and you both feel good as you share similar experiences with the same purchase. And the store got another customer without shelling out money for promotions or ads. This is what makes referral marketing effective, and why it stands out from other marketing strategies.

What are the benefits of referral marketing?

1. It grows your audience.

There are a lot of ways to grow your audience, but most of them cost a lot or take a ton of time to implement. Referral marketing won’t cost you either of these. Your current customers share your business with their friends and family. And since they’ve heard about your business from a trusted source, they'll likely buy from you. With referral marketing, it takes less effort and time to appeal to more potential customers.

2. It expands your business reach.

Word spreads fast; and you can take advantage of it.

Referral marketing undoubtedly extends your reach, whether under a program or based on word-of-mouth. If you’ve asked for referrals from five of your satisfied customers or enrolled them in your referral program, you’ll likely see an influx of prospects who want to know more about what you sell.

In short, it's one of the most effective ways to generate leads. It's your call on how to nurture them until they become your customers.

3. It creates more loyal customers.

Your new customers can end up being the most loyal ones. Why? First, it's because you were referred by a trusted source, which puts you in a great position. And second, if you'll start incentivizing your customers as well, they'll likely stick with you. It's a win-win for both parties.

In fact, referred customers are 18% more likely to become loyal to your business, possibly increasing overall customer lifetime value (CLV).

4. It boosts engagement with your target market.

This is where you can make use of the psychology behind a referral. Remember, your existing customers are not merely giving referrals for your business's sake, but to get that social validation from recommending a reputable brand.

Use it to your advantage. This should give you more reason to engage with your customers. You can invite your customers to join your referral program, and give them shoutouts and some sort of public praises through social media, emails, and different platforms.

5. It creates a cost-effective marketing strategy.

As I said earlier, traditional marketing can become expensive and time-consuming. It's part of the strategy, but you may wish to find other ways to get more leads and acquire new customers.

Referral marketing is one of those ways. Plus, it's a budget-friendly way to market your brand and get the word out quickly. Word-of-mouth marketing is always free, while setting up a referral program might require you to allocate a budget (but it's not as expensive as running ads or launching a major campaign).

How to implement a referral marketing program?

Step 1: Do your research.

First things first, you need to do your research. The main goal is to discover how you can implement a referral program into your strategy. Would incentives and rewards entice your customers? If yes, what can you offer to make them participate in your referral program?

You can do your research in several ways, but basically, you’ll get the most bang out of your buck by hiring a marketing researcher who studies the buying habits of your customer base.

And if you're not keen on delegating this task to someone else, you can simply conduct customer surveys, asking your customers what would make them join in the referral program. Bottom line, you have to think of possible rewards and incentives that you can offer in return for getting referrals.

Step 2: Create a system for your referral marketing program.

Like I said, you can't simply sit and wait until someone recommends your product to other people. You can make referral marketing an active part of your strategy. So in this case, you need to create a systemized approach for getting referrals.

Here are a few important things you need to set up:

• Procedures for crediting referrals
• The number of referrals necessary to get an incentive or reward
• Tools and software that track referrals and continuously run the campaign
• Launch date (and end date if you're planning to run the referral marketing program in a limited period)
• Promotional materials

Step 3: Promote the referral marketing program to the public.

And speaking of promotional materials, the last step is to create awareness and encourage existing customers to join the program.

If you have a physical store, you can place signs, banners, and posters on different corners and cash registers to invite customers to join the referral program. You can also hand out brochures that contain everything they need to know about it.

This is the traditional way of advertising. So aside from this, you should prioritize promoting your program in the digital landscape. This can be done through social media, email marketing, opt-in/landing pages, and more.

What are the best ways to ask for referrals?

Requesting referrals before doing business

Let's start with an example for a customer during the onboarding stage. You can send a leave-behind note that goes like:

Mr./Mrs. Customer,

I’m going to do a fantastic job for you, but I do need your help. Much of our new business comes from customers who refer us. This means that we don’t need to pay for expensive advertising and can, as a result, keep our service costs down. Typically, we get about three referrals from new customers.

When we complete the job, and you’re 100% satisfied with the work we’ve done, I’d really appreciate it if you could keep in mind three or more other people who we could also help.

Now what makes this effective?

• You're straightforward in letting them know you can deliver great results and offer excellent customer satisfaction.
• You're showing them how they benefit from referring your business.
• You are creating an expectation of the number of referrals you'd like to get without being pushy. This allows them to think of who could be a great fit for your products or services.
• More importantly, you're giving them the power. You let the customer know that the referral is subject to your business doing an awesome job for them.

Requesting referrals after the service is done or a product is bought

It's similar to the onboarding referral request, except that you have to send this after the transaction is done.

Mr. /Mrs. Customer,

It’s been an absolute pleasure assisting you. If you know of anyone who is in a similar situation to yourself, we’d love you to give them the enclosed gift card which entitles them to $100 off any of our services. One of the reasons we’re able to keep the cost of our service down is because we get a lot of our business through referrals from people like you.

Now why should you try this technique?

• Your thank-you note recognizes and appeals to their ego.
• You're not directly asking for a favor, but offering something of value as a discount voucher. And vouchers are nice, small incentives to your customers.
• Lastly, you're giving them a reason to refer your business.

How can you make your referral program successful?

1. Incentivize the referral program.

A great way to get more referrals is to incentivize your customers. And I'm not just talking about treats or goodies that you can easily hand out to anyone.

Think about this:

‍What could you give your tribe of raving fans or your clients that they can pass on to someone else?

‍It needs to be something of value that's going to make them look good. For me, as an example in my business, it's my book—The 1-Page Marketing Plan. I give that book away like I'm handing out candy.

I know if somebody reads my book, they're going to be better educated. They're going to get a ton of value. And there'll be a much better prospect because we're going to be able to talk at a much higher level. We're not going to have to talk about fundamentals because they've already been through the book. They know the fundamentals; they know what I'm about.

Here are some examples of when I've given my book away:

• Attending events - I gave away about 200 copies in exchange for  at an event attended by business owners who are in my target demographic free publicity at an event attended by business owners who are in my target demographic.

• Dealing with clients or potential prospects - I'll often give copies to my clients or potential prospects. So often when I'm talking to someone, whether it's on the phone, on Zoom, at a conference, or whatever, if they look like a prospect, I'll send them a package with two copies of my book, a business card, and a handwritten note. And if you're wondering why I always give two copies of the book away, one book is for the person I've been in a conversation with and the other is for them to pass on to a friend, colleague, or relative. Again, I'm making them look good because they're able to pass on something of value, which is my book.

• Working with someone who has my ideal audience - For example, if I'm working with an accountant, lawyer, or whatever, and they've got small business owners in their audience, I might give away books to their client base.

‍
There are two main reasons for doing this:

1. Providing your prospect with something of value that they can pass on, makes them look really good. They're giving something of value to their audience, and it's something that can help grow their existing customer base—which is really good for them.

2. It's also good for me because I get access to a brand new audience that I otherwise wouldn't have. It's a really good strategy. And it's a win-win for both of us.

But here's the thing, it doesn't have to be a book. It just needs to be something of value. It could be something like a free report, a gift voucher, a how-to guide, a software trial, or a free sample.

It just needs to be something that people will think twice about throwing away and something that will help educate your ideal target market about you and the product and services that you provide. If there's a monetary value to what you're sending in, all the better, because people really don't like to feel like they're throwing money away.

2. Promote it strategically.

Without strategic promotion, nobody will know about your referral marketing program. You have to make sure that it's visible to your existing customers, so they can join.

Think of different ways to promote your referral marketing program, and list them. Now when I say to promote the program strategically, it's best that you make use of different online marketing channels and platforms.

Use social media. Revamp a part of your website and create a landing page that features your referral program. You can also build an opt-in page that encourages a prospect to sign up. You can also send emails to your existing customer base and invite them to join.

3. Make the experience shareable.

How can you create a shareable buying experience for your customers?

When thinking about how to create a beloved customer experience, think about what will surprise and delight them.

If you're putting yourself in the shoes of your customer, pretend you got what you ordered...but with an extra cherry on top.

Think about what will surprise and delight your customers. Perhaps a freebie included in the package? A product sample? A gift voucher? The decision is up to you.

The bottom line is: You need to do something to make the experience unforgettable and unique for them. This drives your customers to recommend your business to their friends and family.

Need ideas on how to deliver an unforgettable experience? Check out this blog on using direct mail to win new customers.

4. Never compromise customer service.

Happy customers share more. Now, how do you get happy customers?

Simple. It's all about excellent customer service.

Think about aspects of your customer support process you can improve. Sometimes, a fun banter or sense of humor makes the experience better.

5. Collaborate with influencers.

Aside from relying on your customers to spread the word about your business, you can also work with influencers. Influencers have a large audience, and as the name suggests, they have influence over their followers who aim to think, act, talk, and live like them.

They also have a say on which products should trend, go viral, and sell out.

This can become a great opportunity for you to promote your products and services to their massive following.

But of course, unlike some of your loyal customers, influencers don't refer businesses for free. So you have to be ready to offer rewards and incentives to them.

Here's the thing: It doesn't have to be a large-scale, expensive referral marketing campaign. You can start working with micro influencers who have 2,000 to 50,000 followers that focus on a specific niche.

Learn more about niche marketing and finding your niche audience here.

Start Your Referral Marketing Campaign.

Here's my main takeaway: You can't rely on passive, word-of-mouth referrals. You need to be active.

Let's debunk the misconception about asking for referrals, or putting systems in place that generates referrals. While not everyone will refer you, a referral program will be enough to keep you and your business busy and steadily growing.

Now the big question: Are you ready to scale your business through referral marketing?

I've written another blog post that shares more ways on how to ask for a referral. Check it out here.

Have you ever had a great business idea that you instantly dismissed because it requires resources or expertise from a different individual or company? You're not alone—and you shouldn't be afraid to admit it.

Whether you like it or not, some businesses need a collaborative mindset to succeed. You need to go outside your comfort zone, look at the industry as a whole, and ask yourself:

• Whom can I partner with to accomplish my business goal?
• Who is a good fit?
• What are the benefits and risks?

This is what a joint venture (JV) is all about.  It's an agreement between two companies to work together to achieve a certain business goal. Now that could be to attract new customers, enter into new markets, or help launch a new product, whatever.

So joint ventures can be really powerful in helping your small business to grow rapidly.

Now let's look at how to form a joint venture. The process you'll undertake to identify the right joint venture partners and how to put your plan into action.

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The types of joint venture relationships

Joint ventures come in two main forms:

1. Cooperate With Another Company With Limits

This is when you make an agreement to collaborate with another business with limits and specifications. For example, you’ve launched a promising product and a larger company would like to distribute it to a bigger market. You can agree to form a joint venture based on a contract.

2. Set Up A Separate Joint Venture Business

If you want to take things to the next level, you can create a separate joint venture business, where each party owns a percentage of shares and agree on how the business should run or operate.

Now how can you decide between the two? Start thinking of these things:

• What's your goal? Do you want to create a joint venture with limitations? Or are you open to flexibility?
• How much protection do you want for your business?
• How much money can you spend on building this relationship?

When making your decision, think about the pros and cons. What happens next if the venture is a major success? How about if it goes wrong? How much risk are you willing to take?

If you're still doubtful, don't rush things; seek legal advice from a professional. They will give you tips on how a joint venture can specifically affect your business, and how much profit can you gain or lose from it.

How to Start a Joint Venture? Our 10-Step Process

Step 1: Evaluate whether a joint venture is helpful for your business

Will it be helpful or are you just being impulsive in making decisions? Setting up a joint venture can make or break your business. You have to make sure that your decisions will drive business growth, and are not only driven by emotions.

Consider the following:

• Check what other businesses are doing. It's time to do some competitor research. How many of them are in a joint venture relationship? Is it helpful for them? Are they gaining traction? Did anything change when they teamed up with another business through a joint venture?
• Take a closer look within the business. Assess if a joint venture can fill the gaps of your business. Do you really need help from another business? Or can you re-strategize and fill the gaps on your own?

If you decide to set up a joint venture, it may help your business upscale and generate more profit.

Many huge corporations have joined forces with great success. For example:

• Ford and Toyota had a joint venture agreement in 2011 to produce and sell hybrid trucks on the market. Toyota took care of the production through hybrid technology, while Ford took care of advertising and promotion as one of the leading brands in the US.

• Microsoft and General Electric (GE) teamed up through a joint venture in 2011. They launched the Caradigm Project together, which aims to integrate Microsoft healthcare intelligence products with different GW health-related innovations.

• Samsung and Spotify also formed a joint venture together. In 2018, both parties had a deal to make Spotify more accessible to Samsung device users. A year later, they both decided to include Spotify as a pre-installed application on most Samsung phones, even giving new users a six-month subscription for free.

• Successwise, my company, teamed up with Systemology for a joint webinar. We sent invites to both of our lists to promote our certification programs. We each have very similar target audiences and almost everyone who needs Systemology’s services needs ours and vice versa.

Overall, joint ventures are created for win-win success.

Step 2: Choose the right joint venture partner.

Sure, you might think that forming a joint venture is a great idea. But really, it won't be beneficial if your business is not in the right hands.

Just like in any business relationship, both parties should be the right fit and aim for the same goal.

But let's say the market is saturated, and there's a whole bunch of businesses interested to work with you, how can you choose your JV partner?

First, you can start answering the questions:

• Who had your customers before you did?
• Which businesses or brands is your target market also interested in?
• Who's your ideal joint venture partner? (You can think of any popular business entity you want to work with.)

I suggest you focus on brainstorming your ideal JV partner. Basically, you want to collaborate with someone that has skills, experiences, resources, and assets that complement your own. Are there specific characteristics you're looking for?

Second, create a list of existing customers (who have their own businesses) and suppliers with whom you already have a long-term business relationship. You can also consider teaming up with your competitors or other associates.

Then, once you have finalized your list, answer these questions:

• What kind of reputation do they have?
• Do you share the same business objectives?
• How open are they to collaboration? And do they have the same level of commitment as yours?
• Are their core values aligned with your business?
• Can you trust them?

Third, if you want to go beyond the list, and are keen to work with a new potential partner, you can come up with a decision through these questions:

• What kind of reputation do they have?
• Do they already have existing joint venture partnerships?
• Do you have any idea about how they manage and run the business?
• Are they financially secure?
• Can you trust them?

Before getting into a deal, it's very important that you protect your business's interests. Sure, trust plays a big factor in this partnership, but you have to make sure they're worthy of your trust.

Step 3: Approach your potential joint venture partner.

Have you found your ideal JV partner yet?

Now, it's a matter of compatibility. You also need to do your part by showing your potential partner that a joint venture will be a great opportunity for both parties. Here are some tips on how to seal the deal.

Step 4: Grab their attention before making the proposal.

You don't need to wait until you're ready to make the proposal. Get their attention before you approach them.

Do you like their products? Buy some of them.

Are you interested in attending their free workshops and webinars? Sign up and participate.

Make them know that you exist without expecting anything in return. This is a great way to build a relationship, even before a joint venture takes place.

Step 5: Share some of your complimentary resources.

Let's say you've done your research and your potential JV partner lacks some resources that you can provide. If this is the case, go ahead and share your resources with them.

Step 6: Build Rapport.

If you're in the same industry as your potential joint venture partner, building rapport must be smooth and easy. It's a great common ground to start with.

As you initiate conversations, share relatable experiences and just be you. Think of yourself as an acquaintance who wants to get to know more about someone else.

Step 7: Leverage your assets.

Everything should start with some research. Find out what assets they don't have, and which ones are lacking. If your business has the capacity to provide them, make sure you leverage those assets to attract a possible JV partner.

Step 8: Personalize your pitch.

This is very important. Don't send a templated pitch or you won't get anything from your potential JV partner.

If you personalize your pitch, they know it's meant for them. They know that you took the time to get to know about them, and why it can be a great opportunity to join forces. Simply put, personalization gives you a better chance of closing the deal.

Talk about the potential partnership through their language. Mention areas in their business that need help, and prove why you're the right fit to support them. And just make sure that this partnership will be mutually beneficial.

Step 9: Draft your joint venture agreement.

Even if a written contract is not legally required to create a joint venture, I highly suggest you draft one. Just like any business transaction, it's important that the terms and conditions of your JV should be stated in a written joint venture agreement. This ensures that joint venture partners share the same level of commitment in the deal.

Now before anything else, you have to understand that your joint venture agreement should be drafted by a legal professional. You can find pre-templated joint venture agreements online, but it’s important that they’re tailored to your business. You need to consult experts.The draft for your joint venture agreement should include the following provisions:

• The business objectives of the joint venture
• The type of joint venture
• Each party's share or contribution to the joint venture
• Control and management of every joint venture party
• Details about how each party will share profits, losses, and liabilities
• How both parties will make use of intellectual property
• The role of the management and employees in the joint venture
• A confidentiality clause to protect certain commercial secrets of both joint venture parties
• Dispute mechanism between parties
• Procedures for termination of the joint venture
• Details outlining an exit strategy

Step 10: make the joint venture work.

If all the terms and conditions stated in the joint venture agreement are settled, it's time for the fun part. You need to know how to manage and handle the relationship.

Here are some tips for building a good joint venture relationship:

• Give your JV partner a great first impression. It's important that you get the relationship off to a good start. Show that you're reliable and willing to help in case there are any problems or issues with onboarding.
• Communicate with your JV partner. Communication is an essential part of every joint venture relationship. It's a no-brainer. Typically, you have to arrange regular, consistent meetings with business entities involved in the joint venture. Or at the very least, schedule regular virtual meetings if all the key people are working remotely.
• Be transparent. Do you want to know how to gain your JV partner's trust? Just be transparent. Be open to sharing information and resources that can make the joint venture successful. Be honest with what you're really trying to accomplish, and aim for the same goals. And if there are some internal issues within your company that may affect the joint venture, let your business partner know as soon as possible. The last thing you want to happen is to make yourself suspicious and lose their trust in you.
• Be open to changes. Whether you choose to cooperate with another company, it's still important to become flexible. Consider plans and suggestions from the other party that can improve the way the joint venture works—even if it means that you have to implement something new or unique.
• Be fair. Most importantly, be fair. There's no perfect joint venture. And I'm telling you, all partnerships can have conflicts. So if a conflict happens with your business partner, face it with fairness. Come up with win-win solutions instead of outdoing each other. Remember that joint ventures are mutually beneficial agreements. They're not only meant to please you or make you successful.

How to Maintain a Successful Joint Venture

A successful joint venture depends on different factors. But most importantly, everything boils down to the collaboration between two parties. You have to work as a team. Here are some helpful tips for success:

Step 1: Strive for clarity.

Make sure that all the goals and expectations of the joint venture are clear and agreed on by both parties. If there are any issues, discuss them with your JV partner.

Step 2: Balance contributions.

Everything should rely on the joint venture agreement. Always remember to balance all levels of investments and expertise contributed by both parties.

Step 3: Manage the joint venture.

By manage the joint venture we mean consider the company culture and management style of both parties. Entering into a joint venture can be challenging because no two businesses are the same. But it's important to find the common ground in terms of company culture and management style to make the venture successful.

Step 4: Provide support and leadership.

Whatever type of joint venture you choose, make sure you offer substantial support and leadership. It's always a give-and-take.

Make sure your team, and all business entities involved, fully understand what a joint venture is and how it works.

Be transparent with everyone involved in the deal. Allocate the right time to discuss the terms and conditions of the joint venture, how it will affect day-to-day operations and the end goal of the venture itself.

How to End a Joint Venture

For businesses who chose to cooperate with other businesses with limitations, joint ventures are expected to end especially when the goal is achieved or the project is finished.

But for those who chose to create separate joint venture businesses, there might be a few reasons why they have to be dissolved.

Some things change over time. A joint venture might become successful during its early stages, and end up unsuccessful due to consistent conflicts and unresolved issues. Whatever the reason is, if you decide that the deal won't work anymore, you can base your next step on the joint venture agreement. It's important that you know how to settle:

• Unbundling shared intellectual property
• Protecting business confidential information
• Settling who will be entitled to future profit from joint venture activities
• Identifying who will take charge of continuing liabilities

Dissolving a joint venture should be planned wisely. More importantly, aim for a friendly separation. Even if both parties are separating ways, you can still continue to trust each other and open any possibilities for potential collaborations.

Joint Ventures: A Tool for Win-Win Success

Joint ventures can be critical to your business's success. The resources, assets, skills, or knowledge of other businesses can help them scale, boost their reputation, and earn more profit.

On the flip side, there's also a possibility that it won't work for you. So as I wrap things up, I want you to be 100% sure of what you're entering into. Is your business prepared to enter a venture with another business? That's up to you to answer.

Make decisions wisely. Choose a type of joint venture that will benefit your business the most. Make sure to pick a JV partner that shares the same goals and vision as you.

And while the joint venture agreement is active, do your part to make the partnership work. Reach the goal with your business partner and it will become a tool for win-win success.

A joint venture is created when two parties combine resources with a complimentary, non-competitive business to achieve a particular goal. For example, a hairstylist might form a strategic partnership with a nail salon with the long-term goal of attracting new business and increasing profits.

Joint ventures benefit all parties involved. This alliance allows both companies to maintain their separate business structure and legal status while building a jointly-owned entity.

What is a joint venture?

We often think of our customers in isolation. In reality, we're one of many transactions they do each day.

For example, if you're selling some sort of technology—perhaps a CRM— chances are your ideal customer won't only be buying from you. If they've built a remote business, they probably need video communication software, a CMS, a project management tool, an online payment solution—you get the idea.

What I'm trying to say is someone has your customer before you do.

A different business entity has spent its marketing dollars to acquire your ideal customer. So forming strategic partnerships with complementary but non-competitive businesses in your market can be a powerful revenue-building strategy. In a nutshell, this is the concept of a joint venture.

What's the difference between a joint venture and a partnership?

Most people use these two terms interchangeably, but they're not the same. Four key factors differentiate a partnership from a joint venture. They are:

• Purpose: This is probably the most obvious difference between the two structures. A partnership isn't limited to achieving one project or goal. It aims to run the business for the long haul and earn more profit. Meanwhile, a joint venture's purpose doesn't revolve around earning a higher profit. This gives you more flexibility on which goal you're planning to achieve.
• Formation: A partnership is legally bound. This requires an agreement that explains the terms and conditions of the partnership. On the other hand, having an agreement on paper is not a requirement for a joint venture.
• Members: A partnership can be made of two or more individuals who form a recognized association in operating a commercial space. A joint venture can be made by individuals and business entities as corporations and even governments.
• Duration: A partnership can last long until a business is operating. On the other hand, a joint venture typically has a shorter duration since it only aims at a particular goal.

What are examples of joint ventures?

• Affiliate deals: You can promote products of a certain business with an affiliate program and earn a commission for every product bought from you.

• Referral deals: The concept is simple. You can join a referral program and share the best deals from your customers. You earn a commission for every purchase you get. You can also build your own referral program, then invite and reward customers for spreading the word about your brand.

• Gift cards or vouchers for your products and services: These are handed out to your joint venture partner so they can give them to their customers. It's a way to entice customers who tend to buy when there's a reward or a gift.

• Buy or sell leads: I personally don't recommend this. In some markets, this is looked down upon and some industries consider it illegal.

• Exchange leads: This is quite different from buying or selling. If you have leads that are not ideal for your business, pass them on to another complimentary but non-competitive business and expect to get leads in return, too.

What are the benefits of joint ventures?

1. New source of investment

Is your business looking for new opportunities to invest in a project or campaign?

A joint venture can help you test the waters and minimize the risk of seeking opportunities for new investments. Your joint venture partner is expected to contribute a certain amount of funds, assets, and other resources to the project or campaign, depending on the terms of the arrangement.

2. Save on more costs

Launching a marketing campaign on your own can cost you more. For most small businesses, it's like a gamble that never guarantees any worthy returns.

In a joint venture, you'll share expenses with your partner on a project or campaign, putting less of a financial burden on you.

3. Gain knowledge

Like I said earlier, your target market has other wants and needs. If you want to learn about a different niche or industry, a joint venture is the ticket.

4. Enter a new market

Although you'll be closely working with a complimentary, non-competitive business, a joint venture will give you a chance to enter new markets quickly. Some businesses explore more about a certain niche and realize that they can market to them. Don't waste that potential opportunity.

5. Possibility for business growth and expansion

Startups and small businesses typically have limited resources and access to capital for scaling projects. So if you’re going to join forces with a larger company or a popular brand, there's a possibility for business growth and expansion through a joint venture strategy.

6. Acquire intellectual property

IP is an important business asset. And if you think you have limited access to it, perhaps you consider hiring more people to your in-house team.

This is not the only way to acquire intellectual property. Your small business can enter into a joint venture with a different business and gain access to that asset. So, for example, you can work with your JV partner's Facebook ads manager if you're struggling with your campaigns. Start learning the ins and outs until you (or someone from your team) can finally master a certain skill.

7. Boost credibility

One of the biggest dilemmas of a small business is when they're faceless to the public. It can take months or even years to gain traction from a customer base.

Now, a joint venture can speed this up for your business. Forming a joint venture with a well-known brand will help you gain exposure and boost your credibility faster. Take note, many small businesses are doing the same thing, so it can take time for you to find the right joint venture partner that can boost your appeal to your target audience.

8. Avoid competition

One of the main reasons why joint ventures work is that many businesses would like to stray away from competition temporarily. By collaborating with non-competitive businesses, they can achieve their goal (whether to expand on a new market or gain more attention) without putting too much pressure and stress on themselves.

You can choose to team up with a joint venture partner and make marketing fun and valuable for yourself.

Are there risks to consider?

Risk 1: Lack of communication

You might initially gain a great first impression with your joint venture partner, but things won't work without consistent communication. For example, your JV partner makes a decision that doesn't follow the joint venture agreement. And they weren't transparent about it.

This scenario tells you that both parties had a miscommunication, and if it continues further, it will be best to part ways.

Risk 2: Incompatibility

If you and your joint venture partner have different objectives, pursue separate goals, or manage the business in opposing ways, it means you're not a great fit for each other. Typically, businesses only realize this after working with their joint ventures for a while. They might think that everything will go well according to plan. If the joint venture agreement doesn't clearly define terms and conditions, and both parties realize that incompatibility is the issue, it's best to dissolve the joint venture.

Risk 3: Imbalance

Different levels of investment, expertise, and assets among joint venture partners might not be an issue at first. No two companies are the same.

But instead of embracing differences, you should consider that there's a risk with imbalance. For example, the other business or party can begin to feel that their contribution makes up most of the project, and they're not getting enough from the other party. If this happens to you, it's best to talk about it. Consistent and clear communication can help businesses meet halfway and work out the issue.

Reach Your Goals through Joint Ventures

Joint ventures are growing rapidly and have gained importance in the market. Even if most businesses instantly use this strategy to make their way to success, it's important that you understand how it works and why you should be in a joint venture relationship.

Weigh the pros and cons before joining forces with a different business. Are your business's core values aligned with your potential JV partner? Or do you only want to join forces because they're a well-known brand and they can help your business boost visibility within the customer base?

Be careful with this. Just like in any other relationship, compatibility is a huge factor. The business relationship has to be built on trust and transparency. You've both taken risks. Make sure you're transparent with all of your goals, motives, and decisions. Now that you know the benefits of a joint venture, do you have any companies in mind that you could approach to form an arrangement?

• What are your objectives?
• How are all the companies involved benefitting?
• How can you ensure success?

Don't miss the opportunity to gain more access to new resources and work with another business that can help you grow. Check out how to set up a successful JV partnership here.

When you encounter a complicated or challenging situation, whom do you go to first? Do you call a friend? An experienced colleague? Someone you trust and look up to?

Whomever it is, asking for help is the right thing to do.

If you're running a business, you know how important it is to seek help from external professionals like consultants, mentors, and coaches. They have the experience and expertise that can save people time and money.

Now if you consider yourself an expert in a chosen field or someone with years of industry experience, you might think of ways to take your career or business to the next level.

You have two options: being a consultant or mentor.

How do they differ from each other? Which option is best for you?  What are the steps to becoming a consultant or mentor? In this blog, I'm going to give you the answers you're looking for.

What is a Consultant?

As a consultant, you must be an industry expert who does certain tasks in a business. You proactively provide advice or suggestions to professionals and business owners.

When working with a client, you understand and analyze the context of the situation or problem before you advise the best course of action. But you don't involve yourself to work out the solution itself.

Types of Consultants

• Business Consultant: This refers to an advisor who finds lapses and bottlenecks in a business's operation. An entrepreneur might seek your help to improve their performance, efficiency, or whatever.
• Sales Consultant: A sales consultant is responsible for developing better sales processes, and identifying ways to boost sales performance. Sometimes, they also offer sales training to a sales team.
• Marketing Consultant: If a business needs help to attract more prospects and get more customers, they have to hire a marketing consultant.
• Accounting Consultant: This is someone who analyzes an organization's financials and provides guidance for better financial decision-making.
• Technology Consultant: Businesses need an expert like a technology consultant who improves their efficiency through technical advice and solutions.
• Legal Consultant: This is typically a legal professional who guides and assists a company on a specific legal matter.
• Public Relations Consultant: If a business needs to improve their public image and gain more publicity, they hire a PR consultant.

What are the qualifications for a consultant?

The qualifications for consultants are quite subjective and flexible. But if you're interested in pursuing a consulting business, you must possess the following:

• A bachelor's degree (often paired with an advanced degree)
• Certification from an industry organization
• Years of experience in the niche you're working in

Aside from the basics, you must also consider what your prospects and clients value from a consultant.

How can you become a consultant?

Choose an area of expertise.

Take some time to assess yourself. What are your strengths? Skills you can further develop?

Now if you have a few ideas in mind, answer these questions:

• Can I provide valuable advice and knowledge in this certain niche?
• ‍Do I have the experience to be considered an authority figure in this field?
• Is there a demand for this industry?

Overall, think about all the areas you excel in or projects where you get the most positive feedback. Most importantly, consider the things you're most passionate about.

Set your goals.

Consulting is business. You can't just dive in and start looking for prospects. Set your goals and create a clear path you want to follow. Do you want to make it a part-time or full-time business? Do you see yourself working with your own team?

Become certified.

It's true that certifications have their own perks. They prove that you've met a certain standard of competence, which gives you an edge over other consultants. And you can get one depending on your niche. For instance, if you're aiming to be a marketing coach, you can get a 1-Page Marketing Plan Certification from Lean Marketing.

Pick your target market.

Aside from choosing your niche, you should also pick your target market. And make sure that you know them very well by answering these questions.

• Where do they live?
• What are their pain points?
• Who are you targeting? Businesses or professionals?
• What motivates your target market?
• Who are your competitors?

Expand your network.

One of the most effective ways to get clients is through networking. Meaning, you need to engage with your target market—even if all of them won't seek your services. Also, it's great to connect with other consultants.

Create a system for attracting and getting clients.

You can't just sit and wait for a miracle to happen. You need a strategy for finding, attracting, and closing clients.

What is a mentor?

A mentor focuses on helping a person (mentee) and not on helping to solve a certain issue or situation. It's generally a leadership role.

They act as trusted guides and advisors. They've usually worked in a management or leadership position and have faced the same challenges as their mentees, which makes them qualified to share knowledge and experience with their mentees.

Basically, if you're the type of person who always shares "Been there, done that" solutions and have achieved success, you're probably fit to become a mentor.

As a mentor, you have to inspire and build your client's trust. This makes it easier for them to share their concerns and goals with you.

Types of Mentors

• Traditional Mentors: This refers to general mentoring. It can be a senior and a seasoned professional, who earned more years of experience than you do in a certain field.
• Reverse Mentors: As the name suggests, it's the complete opposite of a traditional mentor when it comes to age. This refers to a young professional who has gained more experience and has proven expertise in a specific industry. If you want to be one, you must be open to working with senior professionals.
• Peer Mentors: If you're still working in a corporate environment, you can present yourself as a peer mentor to a colleague. Just make sure both of you have the same level of responsibility, and often encounter the same types of issues and situations.
• Aspirational Mentors: Can you mentor someone in one sitting and genuinely inspire them to make a change? Then you must be an aspirational mentor. This focuses on inspiring someone to do what works effectively for them.
• Practical Mentors: If you can provide pragmatic, tangible advice that someone can apply immediately, then consider being a practical mentor.
• Coping Mentors: This refers to a mentor who finds ways to help a person cope with stressful situations. In this specialization, you have to be a great listener.
• Identity Mentors: If you want to mentor someone on how to adapt or understand a certain group, this is the right specialization for you.

What are the qualifications for a mentor?

Just like in consulting, the qualifications vary. But the bare minimum for mentoring still stands to be a degree holder, certified by a recognized organization, and years of experience in a leadership or management position.

How can you become a mentor?

Create a plan.

Before you become a certified mentor, you should know what value you can provide through mentoring. Think of your objectives once you enter this field. Then, make a list of resources and other investments you need. How much time and money are you willing to invest?

Choose a specific area you want to mentor in.

So how do you set mentorship areas you want to focus on? You can simply list all the areas you're good at and consider the knowledge and skills you want to share.

Choose a mentee.

When becoming a professional mentor, it's important to choose the right mentee. Make sure they'll find value in your service and they can benefit from your guidance.

Start mentoring.

Once you've picked your mentee, start working together. It's important to discuss and set rules, schedules, goals, and everything you need to make the mentorship effective.

Hold your mentee accountable.

As you guide and support your mentee, watch for improvement and follow up for changes or updates. This strengthens your relationship with your client and makes the program effective.

Make changes and improvements.

Mentorship is a continuous learning experience. As your mentee learns from you, you also learn from them. It's give-and-take. Remember, you can only get better at it through experience and practice.

What's the difference between a consultant and a mentor?

Consultants and mentors differ in five general areas. Understanding these differences will determine how you approach training, developing new projects, building relationships, and establishing your process.

1. Scope

Consulting requires less time because it's straightforward. For example, a client has a certain problem in the workplace and the consultant will be brought in to fix it. When it’s done, it's done. There's no constant communication between the two parties unless there's repeat business.

On the other hand, mentoring requires more time to build a strong mentor-mentee relationship because it’s built on mutual trust and respect. Unlike consulting, this covers a mentee’s different aspects of life, whether about their business or career.

2. Goal/Purpose

Consultants solve specific and tangible goals. They also help their clients develop specific skills to achieve the goals on their own. Their job is done once they've accomplished this.

Meanwhile, instead of aiming to achieve a certain goal, mentors are there to guide the mentee until they change for the better. They’re focused on improving a mentee’s skills, attitude and mindset.

3. Area of Focus

A consultant looks at the big picture. For example, business consultants help to come up with solutions in the workplace.

On the other hand, mentors simply focus on one person at a time. They spend time and effort to hone their mentee’s skills through personal development.

4. Approach

Let's say consultants prefer keeping things systemized. They utilize certain agendas when meeting a client. For example, an established business hires a marketing consultant. They want to know how to set up a sales funnel and rework their campaigns. In short, the approach is formal and mostly involves professional or work-related concerns.

Mentoring involves a strong mentor-mentee relationship. Mentors work with mentees on a personal level. At times, a mentee’s personal issues come into play and are worked through. The relationship is comparable to a close family member or a colleague who offers some help and expert advice.

5. Experience

Consultants simply focus on solving the problem or doing a certain task, then that's it. They don't have to further involve themselves in someone's business. And they can have clients from different industries. A prospect can seek consulting services unless it requires specific skills.

This is quite the opposite of mentorship. As I said, mentors are personally involved with their mentees. Mentors need to be more experienced and qualified than their client in the same field. This gives mentors an edge to guide and support their mentee.

Where does a coach stand?

Now that you know the difference between mentorship and consulting, where does coaching stand?

Let's define coaching first.

ICF's default definition of coaching is "partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential."

Now what makes it different? Here are the top characteristics of a coach.

• A coach works equally with a professional or a business owner. They partner with people to help find answers and solutions. Coaching doesn't tolerate spoon feeding; coaches offer extra support and advice to help people discover goals.
• A coach provides accountability. In a coaching program, they usually create a plan or strategy that both parties must implement and follow. Coaches also provide a solid support system to help individuals improve and move forward.
• Coaches don't involve themselves in the past. If you're a business owner seeking help from a coach, you stay in the present and future. Coaches focus on the current situation you're in and where you’re heading.

Do they overlap?

Yes, they do. This is one of the reasons why the terms coaching, mentorship, and consulting are often used interchangeably.

They all have a common denominator: to offer individuals, companies, and organizations help.

‍So sometimes, you'll see a business coach who also offers a bit of mentoring. And a mentor will say that they also offer life coaching services. A consultant may focus on one-off projects but they can also become a coach if a business owner needs their help in the long term.The thing is, help can be offered and manifested in a lot of ways. This is largely what makes them different from one another. If you're still undecided on which road you want to take, consider answering these questions:

• Whom do you want to work with? Are you open to working with everyone or do you prefer working with people in the same field as yours?
• What projects do you want to work on? One-off, short-term, or long-term projects?
• Do you want to provide the answers and solutions? Or do you only want to support your clients in finding the answers and solutions on their own?
• Do you want to focus on a problem or a person?

Take it to the next level.

Give yourself a moment to assess what you want to do and whom you want to be. Are you ready for some action?

Learn how to become a coach, consultant or mentor through my 12-week certification training and:

• Get access to private weekly live training
• Read and use my team’s library of SOPs
• Earn an official certification after finishing the program
• Be part of our reseller program (Course and Recruitment Service)
• And more!

I've worked with a lot of business owners throughout the years and helped them get the results they want to achieve.  I’d love to help you fulfill your personal, business and career goals too. Let’s see if my coaching certification program is the right fit for you. Learn more here.

There’s a ton of confusion as to what branding is? I like to simplify.

A brand is the personality of a company. It's the first thing consumers think of, or feel, when they see a company's logo or product or hear their name. In fact, you can use the word “personality” as a direct substitute for “brand” to instantly clarify its meaning.

So let's unpack everything you need to know about branding.

Brand Definition

A quick Google search gives the following diverse range of answers for the term brand:

1. “It is the emotional and psychological relationship you have with your customers.”
2. “A type of product manufactured by a particular company under a particular name.”
3. “The name, term, design, symbol, or any other feature that identifies one seller’s product distinct from those of other sellers.”
4. “It is the idea or image of a specific product or service that consumers connect with by identifying the name, logo, slogan, or design of the company who owns the idea or image.”
5. Advertising guru, David Ogilvy, defined the term brand as the "intangible sum of a products attributes."

If you think of your company or brand as a person. What attributes make up its personality?

• What’s its name?
• What does it wear? (i.e., this is the brand's visual identity, so the design. What images do you use, what are your brand colours)
• How does it communicate? (i.e., brand positioning—the benefits you want your target market to think of when they think of your brand)
• What are its core values and what does it stand for? (i.e., brand promise, value proposition)
• With whom does it associate? (i.e., target market)
• Is it well-known? (i.e., brand awareness—the extent to which consumers are familiar with the qualities or image of a particular brand of goods or services.)

Brand personality varies dramatically between businesses. For example Toyota's target audience isn't the same as Rolls Royce which is a luxury brand. So your brand experience is very different.

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Unpacking Brand Awareness

Brand awareness is consumers ability to recognize your brand or brand elements in different environments. For example, if your logo includes your brand name and an icon, could you remove the company name.

If consumers are able to identify an ad as representative of your brand without you having to state it, that's good brand awareness.

Some small businesses look at the flashy advertising campaigns of well-known brands like Apple and Coca-Cola, and get caught up thinking they also need to spend time, money, and effort building brand awareness.

That’s putting the cart before the horse.

Do You Want to Grow Your Business Rapidly?

Then you need to market it. But not just any marketing will do. In my new 1-Page Marketing Plan Course I show you the exact techniques I've used to start, grow, and exit several multi-million dollar businesses, so you can too.

Tell Me More

How To Build A Brand

What came first, the sales or the brand awareness?

The sales, of course.

It’s true that as a company gets bigger, brand awareness feeds sales. However, don’t look at what they do now as big companies. Look at what these businesses did to get big in the first place.

When they were small, they certainly didn’t put huge amounts of money into their marketing with flashy ads on social media and brand-awareness campaigns. They hustled, they closed deals and they sold their products. If Apple, Dove, and Nike didn’t concentrate on sales to begin with, they wouldn’t exist today and, certainly, there would be no awareness of them.

So that’s why I tell small business owners, “The best form of brand building is selling.”

What better way for someone to understand your brand personality than by buying from you.

Branding is something you do after someone has bought from you rather than something you do to induce them to buy from you.

Trying to emulate the advertising practices of large businesses is a major mistake. (And I’ll go into this more, shortly)

If you’re in the startup phase, you’ll want to focus on direct response to build sales momentum, but I digress.

The Difference Between A Brand And Brand Name

There’s a lot of jargon around branding and it can seem more complicated than it actually is. And, you know, it’s even trickier because the definition of “a brand” has changed over time.

So let’s take a moment to head back to the slaughterhouses in the early 1900s to trace its roots. I know. Not pleasant. I’ll be quick.

Back then, cattle ranchers in the US started “branding” their animals with hot or branding irons so it would be easier to recognize the ranch each animal was from. And just like that, the word “brand” was born.

But over 100 years later, the meaning has changed, and now the mark burned onto the hide of a cow would fall into the “brand name” category. Why?  

Because you can actually see it and identify it as a product deriving from a specific company, whether it’s on a website, packaging, information in a newsletter or blog, a cow, etc.

And now, “brand” is used to refer to the perception customers have about a product or service; it only exists in someone’s mind. So yeah, a brand’s name plays a part in this, but there’s a lot more.

You can also use PR to build your brand name. See for yourself.

Remember my definition of a brand? I see it as the personality of a business. It's the first thing you think of, or how you feel, when you see a logo or hear its name.

For example:

• Tiffany’s packaging—the little, robin-egg blue box (romance? special moments? wealth?)
• YouTube (entertainment? entrepreneurship? stardom?)
• Nike (speed? fashion? controversy?)
• Coca-cola (nostalgia? celebration? pleasure?)

So brand and brand names are totally different. Now let’s move on.

What is Brand Equity?  

I once heard it described as customers crossing the road to buy from you even though there’s a supplier of an equivalent product on their side of the road.

Brand equity can manifest itself in the form of

• customer loyalty,
• repeat business, or
• even a price premium you can charge for your product or service.

For me, nothing illustrates this better than seeing droves of people lining up for the latest Apple gadget or limited edition Nike shoes while their competitors with plentiful stock and no lines get much lower demand.

This kind of equity is born out of amazing previous customer experiences, which turn customers into raving fans. This is something that simply can’t be bought with hype-filled awareness campaigns.

The advice I’d give to any small-to-medium business wanting to work on branding is, focus on sales and create raving-fan customers after the sale.

Brand Identity vs. Brand Image

So in a nutshell:

• Brand identity (you can control this): It’s the voice you give your product or service.
• Brand image (you can’t control this): It’s what your customers hear.

What Is Brand Strategy?

And you know what I’m going to say in the end. It all boils down to making sales and creating raving-fan customers for small- to medium-sized businesses, so you don’t have to sweat it.

But it’s always good to be able to identify what not to sweat.

Ok, so large-company marketing is also sometimes known as mass marketing. It's used by major brands such as Coca-Cola, Google, and Apple who have massive advertising budget and a strategy about how to use that money.  

The goal of this type of advertising is to remind customers and prospects about your brand as well as the products and services you offer.

The idea is that the more times you run ads from your brand, the more likely people are to have it at the top of their consciousness when they go to make a purchasing decision.

It's an effective brand strategy; however, it's very expensive to successfully pull off and takes a lot of time. You have to saturate various types of advertising media—TV, print, radio, and internet—on a very regular basis and over an extended period of time.

However, a major problem arises when small businesses try to imitate Coca-Cola, Samsung or Apple. The few times they run their ads is like a drop in the ocean.

It’s nowhere near enough to reach the consciousness of their target audience, which is bombarded with thousands of brand messages each day. They get drowned out and see little or no return for their investment.

Following the path of other successful businesses is smart, but it’s vital that you understand the full strategy you’re investing in and that you’re able to execute it.

Brand strategy from an outside observer’s perspective can be very different from the reality. If you’re following a strategy that has different priorities than yours, or has a vastly different budget, then it’s highly unlikely it'll generate the results you need.

Why Is Branding Important?

Now, diving in a bit deeper, I want to address a couple other topics—assets and value propositions—and how they relate to building your brand:

How do tangible and intangible assets differ

What kind of asset is a company’s brand? So assets are basically everything a company owns, and they fall into two categories:

• Tangible assets: are physical and include cash, inventory, purchased items like equipment, buildings, and investments.
• Intangible assets: non-physical including accounts receivable, patents, intellectual property, copyrights, trademarks, your company’s name.

To break it down, intangible assets are seen as having more long-term value than tangible assets because tangible assets are expendable. For example, the brand name Apple Inc. is of greater long-term value than thousands of warehouses full of the latest iPhone.

So yes, building your brand name will be a valuable intangible asset to your company.

What are the elements of an effective value proposition

Will it help build brand loyalty? So simply put, a value proposition is a statement about the value a business offers its customers through its products or services. You can usually find this in the “About Us” page or a mission statement.

You create a value proposition when you answer the following:

• What are your company’s core values and what does it stand for? (i.e., brand promise, value proposition)

Simple, right?

And to flesh it out more, you could read for hours about creating an effective value proposition for your company, but I’ll sum up the key elements:

• Understand your target market (what brings them both joy and pain)
• Connect with them (by being real)
• Add massive value to their lives (this will create raving-fan customers and brand loyalty)

Why Invest In Branding?

Unless you’re Nike, Google, Microsoft or another big-name company with a massive advertising budget, don’t invest in branding. Your customer base don't care about this.

For small- to medium-sized businesses, the best form of brand building is selling.

Because like I mentioned earlier, it's something you do after someone has bought from you. Rather than something you do to persuade them to buy from you.

In the same way you can get a sense of someone’s personality after you’ve dealt with them, the same thing goes for your company and it's brand.

As a small business owner your focus should be around creating raving-fan customers. If you do this correctly, your brand will build itself.

If you enjoyed this article, you may also enjoy our article on How to Create a Lead Magnet that Converts in 6 Steps. As a small business owner, it’s the smarter way to acquire leads for your business and build your authority.

Have you ever worked with a marketing coach? Or are you planning to work with one?

I know there's always skepticism amongst business owners when it comes to this. I'm a marketing coach myself, and I'm used to hearing misconceptions about what I do.

One common concern is money going down the drain without a high return. Others say they don't need coaching because their businesses aren't failing, and a quick fix isn't what they're looking for.

These are false assumptions.

• First, you can’t simplify coaching as a tool.
• Second, coaching is not only for failing businesses; it helps the good become the best.
• And third, coaching doesn’t provide band-aid solutions.

So I'm going to simplify it for you. As a coach, I help entrepreneurs achieve the success they envision for their businesses.

Do you need help to get off the ground? Are you trying to upscale your business? No matter what your definition of success is, a marketing coach will help you make that happen.

But let's start by explaining what a marketing coach does before getting into why you need to hire one.

What is a marketing coach?

A marketing coach is an expert consultant who works closely with business owners to help you build your own marketing capabilities. With their help you can more easily identify challenges and build a fully systemized approach to marketing.

This coach has years of experience generally marketing high-growth businesses. Their job is to understand your business values, mission, and goals, and to advise strategies for success.

What do marketing coaches do?

Much like any other coach, a marketing coach works with you to refine your skills, advise your decision-making, and help you achieve your business goals. Each coach is different. They follow a specific process in coaching sessions with business owners.

But everything starts with a series of questions you have to answer. They have to learn everything they can about your brand—from your target market to your current marketing assets and marketing efforts.

And just as every business is unique, a coach will ask you about your goals.

• Do you need help identifying your niche? Follow my 8-step process to finding your niche.
• Do you need help developing a marketing plan?
• Do you want to grow your team further?
• Do you want to increase sales and business revenue?
• What matters to you?

Once your goals are set, the coach will step in, help you focus your efforts, iron out your marketing plan, and give you a clear path to future success.

You'll have a reliable source of information and advice from a professional with a good track record who knows the ins and outs of marketing products and service-based businesses.

If you're considering coaching but aren't sure whether group or 1:1 coaching is best for you, check out this article.

What Services Does A Marketing Coach Offer?

Marketing coaches are versatile and flexible in the services they offer. They can help small, local businesses, startups, large corporations, and international companies. Many of them only focus on certain niches, which means that not all coaches take on any client or company.

And like I said, marketing coaches don't simply exist to help entrepreneurs with businesses falling apart.

Aside from helping them overcome the dreaded growth plateau, a coach can also help you create new marketing strategies to attract high-value clients. This includes:

• crafting your marketing plan
• building a business system or your website
• identifying a lead magnet and building marketing assets
• choosing tools for your remote team (if you have one)
• defining goals
• and implementing business strategies.

What's a Small Business Marketing Coach?

The goals and challenges of a small business can differ from a consultant for a big business.

For example, a local bakery would definitely have a different set of goals than a fast-food chain that caters to a global client base.

A small business marketing coach specializes in developing marketing strategies and marketing plans for small businesses. A huge part of their role is to learn everything about the business and develop a marketing strategy that helps them reach their goals.

Here are three ways a marketing coach can benefit your small business?

1. Helping you get the right marketing tools in place. Don't kid yourself. Tools are essential to your business success. They automate mundane processes and help to improve your customer experience.
2. The right marketing processes and team. Your people are key to building a profitable business, but you also need the right processes. Without these, your team will be butting their heads up against the same problems day in and day out.
3. Helping you build the right assets. An asset is anything that helps you connect with your audience and build that all-important relationship.

5 Reasons Why You Need to Hire a Good Marketing Coach

1. You need more support.

It's true. You know your business better than anyone else. But really, is this enough of a reason to do everything on your own?

I get it that some business owners think they don't need any help with marketing. But the reality is, your strategy always has room for improvement.

‍Eric Schmidt, the former CEO of Google, hired a coach even when the business was growing exponentially. And it was one of the best decisions he made.

So simply put, you don't have to be a one-person show forever. Being a solopreneur isn't sustainable in the long run.

Or, you don't have to push yourself to make all the decisions impulsively. When in doubt or skepticism, a marketing coach can be your trusted confidante. They can be someone who provides that reliable support to help you face the problems and challenges of your business.

2. Your business isn't growing.

Perhaps you've been running your business for years, but it isn't growing as fast as you’d hoped.

The number one reason why businesses fail to scale is that things don’t get done. And this happens because you either don’t have time to do it or don’t want to do it.

If this currently happens to you right now, you need to change your mindset.

There are different types of people you need on your team. And a marketing coach can help you hire the right people to upscale your business.

3. You're doing random acts of marketing.

So let's say you're using Facebook Ads, cold calling, digital marketing, and all of that. If it's working for you, then great. But think about it. Implementing tactics without a solid strategy leads to the “bright shiny object syndrome,” which keeps you chasing the wrong things.

‍You need a strategy, which is the big-picture planning you do prior to the tactics.

So instead of doing random acts of marketing, a coach will help you build and manage a solid marketing plan that fulfills your goals and objectives.

4. Your business has gaps you can't see.

Sometimes, when you're way too focused on running your business, you miss spotting areas that need outside help. You might be able to build a sales funnel, send monthly newsletters, or post on social media. But again, these don't constitute a marketing strategy.

A marketing coach will review current gaps in your business, identify low-hanging fruit opportunities, and recommend the best course of action to take.

5. You need freedom and autonomy.

When was the last time you went out with your family without thinking about your business? Do you sleep eight hours a night? Can you still maintain a work-life balance?

If you answer "no" to all or most of these questions, it's time to consider hiring a marketing coach.

Again, you might know everything about your business, but a coach is an expert. They understand the ins and outs of marketing, which means that they can deliver results faster and more efficiently.

You can hire a marketing coach, and you'll get the freedom to do other things that you value—both in your business and your personal life.

How much does coaching cost?

Really it depends on the coach and the type of service they provide their customers. In general, you're looking at anywhere between $100 to $1,000 per session. Having said that, most professional coaches will offer the business owner a package deal.

‍Before you sign on to become a client, do a little research to be sure you're the right fit.

1. What's their track record like? Ask to see a few client testimonials. Check for Google reviews. The more 5-star reviews, the better.
2. Request to speak to existing customers/clients to discover what strategies were advised and agreed on, what kind of knowledge was shared, and how successful they were in achieving key goals.
3. Review the consultant's coaching process and be sure that you can free up your team to focus your marketing efforts on strategies that get results (for example, building a business system, choosing the right tools for your team, and updating your website and social media accounts).
4. Most importantly, if you can't make time to implement you won't increase your clients, sales, and market share.

Knowing this can give you the confidence you need to invest your time and money in a marketing consultant

Who is the best business coach in the world?

The best coach is a marketing consultant that's three or four steps ahead of you. Many business owners make the mistake of hiring a consultant who's at the top of their game, for example Gary Vaynerchuk.

‍He's incredibly successful, and yes, he'd be a great coach, if you've built a multi-million dollar business. But, if you're bringing in just under a million dollars in profit, he's probably not the right consultant for you.

Gary invests a small fortune in marketing, but he's already built a massive raving customer base. So basically, many of his strategies will be costly and would require a team of professionals to help get the job done.

He's not going to help you to build a system, create a contact form, or tinker on your website. He'd focus on high-level strategy.

So if you want to create wealth and achieve realistic goals, you're better off hiring online consultants that are already where you want to be businesswise.

So, Do You Need a Marketing Coach or Agency Help?

If you don't want to bring your marketing in-house I'd say hire an agency. There are pros and cons. For example, hiring an advertising agency is more costly than bringing your marketing internally. You're also not building your intellectual property.

But if you'd like to take charge of marketing your small business, and build an internal marketing team, you need marketing coaching.

Now that you know the benefits of investing in marketing consultants, where do you stand?

There's so much hype out there. There are many bright, shiny objects that people tell you to follow when it comes to your marketing—Facebook ads, SEO, digital marketing, social media, cold calling, you name it.

But what you really need is marketing clarity. You need to know what to do from a marketing perspective. And instead of doing random acts of marketing and simply throwing stuff on the wall, you can follow and implement a marketing strategy that grows your revenue and makes your business more successful than you could ever have imagined.

And this is what a good marketing coach can offer you. To recap, with business coaching you get:

• Extra help, guidance, and support
• More time and freedom to do what you want
• A solid marketing plan that fills gaps and ensures business growth

If you think this is what your business needs right now, sign up on my 1:1 coaching program.

If you want to start a coaching business, get the low down on everything you need by now. We'll be sharing our top tips for building a world-class coaching business.

Are you thinking about launching a coaching business or investing in coaching to further your career or improve your personal life?

While this article focuses on coaches, it can still be helpful to someone looking to hire a coach. You'll learn what is the difference between group coaching and one-on-one coaching, what to expect from coaching sessions, and the benefits.

For coaches, I'll show you how to choose the right program for your coaching business and make it a success.

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‍

But first, let's look at the impact successful coaching has. According to the Institute of Coaching:

• 80% of people who went on a coaching program boosted their self-confidence
• Over 70% improved their work performance, communication skills, and relationships
• 86% of companies were encouraged to invest again in coaching.

Coaching changed my life. I've paid for both group programs and private one-on-one sessions.

I owe my success to the many life and business coaches who helped me focus my attention on my goals, rewire my mindset and save me time and money. Their guidance and knowledge are the reason I was able to build several multi-million-dollar businesses.

So if you have the goal of becoming a successful business coach, here's what you need to know.

What is One-on-One Coaching?

Also known as individual coaching, it's designed to help people create change in their lives. This can mean a lot of things, but it’s typically improving a skill, building a system, or achieving personal goals.

Individual coaching is popular and common practice among businesses and organizations, especially in executive and management roles.

What are the Benefits of One-on-One or Individual Coaching?

It’s Tailored to Individual Needs

This is the biggest benefit of one-on-one coaching. You meet your clients’ individual needs. For example, in a private session, professionals are more comfortable sharing their challenges, problems, concerns, and questions. The more they open up, the easier it is to help them find the right answers and solutions.

As a coach, you can follow a specific agenda or strategy depending on the nature of your coaching business, but you can adapt your content and solutions to meet specific needs. This strategy provides the greatest value to your clients. Trust me, they'll love it.

It Builds Stronger Relationships with Your Clients

Coaching is much more effective with a solid working relationship. And since you only have to work with one person at a time, you get to know your clients better. This means you have more time to listen and understand what they're going through, empathize with them, and deliver the best service possible.

In return, a client will slowly learn to trust you, feel more comfortable working with you, and be willing to collaborate to achieve their goals.

In short, one-on-one coaching is more personal and creates stronger working relationships.

It’s Easy to Hold People Accountable

With one-on-one coaching, it's easier to hold your clients accountable. While you can do the same training with a group, it's more challenging. You'll find there are those who rarely participate in group discussions or simply don't attend sessions.

Focusing on one client lets you put more energy into their training, address their setbacks more quickly, and hold them accountable.

What are the Disadvantages of One-on-One or Individual Coaching?

It Consumes More Time

A coaching session can take anywhere from five minutes to three hours. I like to cap mine at one hour. But you do spend more time sharing knowledge, troubleshooting, and helping to drive that business forward. Group training is certainly a less time-consuming process.

You Have to Charge Higher Fees

Because individual coaching is more time-consuming, you have to charge more. This is the only way to make it cost-effective.

Sure, you may attract high-value prospects, but it can also limit your target market to businesses and organizations that can afford your services. On the other hand, other business people will prefer group coaching since it's more affordable. In an industry full of popular and competent coaches, you need to strategize and beat the competition.

It Takes Longer to Upscale

Coaching is business. So if you're looking for a business model that's faster and easier to upscale, individual coaching is not practical. It takes time to get more people to sign up for your coaching program. And this can affect your profit unless you can raise your pricing in a short period of time.

What is Group Coaching?

Group coaching is about gathering a group of individuals within an organization or from different companies and helping them work towards a shared goal.

In my case, I help entrepreneurs and business owners to make better marketing decisions and scale their companies.

You, as the coach, serve as the facilitator of a session while participants in a group work together to gain insights, support one another, and take action toward specific goals.

In group coaching, you can coach different individuals working from various parts of a company. They don't need to be connected or related in any way.

This allows you to coach them in a variety of areas, whether it's about managing conflicts, communicating with other people, or honing interpersonal skills.

What are the Benefits of Group Coaching?

You Meet and Learn from Other People

For other people, working in groups is much more fun and effective. You get to meet other people who you resonate with, and this can be very powerful. Maybe you have similar backgrounds or you’re currently going through relatable life challenges.

In my case, I help entrepreneurs and businesses achieve the success they want for themselves. And as someone who has built a business from the ground up, it feels more rewarding to work with a group who has had the same challenges as I’ve had.

Since this requires you to work with business people and professionals from different backgrounds, you can create a group coaching community where everyone can support one another.

On a different note, this can expand your network too.

You Spend Less Time and Earn More

Coaching groups allows you to maximize your time wisely. For example, you can coach twenty to a hundred business people in less than two hours. That's just two to ten times higher than what you get from one-on-one coaching.

Remember, time is money. Group coaching allows more room for more clients in a specific timeframe. And this results in a higher profit.

It’s More Scalable

A group coaching program is a one-to-many business model. Meaning, you can schedule multiple coaching sessions at a time, and track the number of participants in every coaching group.

Do this constantly, make sure you have a steady stream of clients, and your coaching business will skyrocket sooner than you know. Simply put, group coaching is easier to scale than individual coaching.

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What are the Disadvantages of Group Coaching?

It Feels Less Personal

There's one thing that lacks in a group coaching program: personalization (more on why one-to-one personal experiences are important here).

Considering that you have to coach between twenty to a hundred professionals in every session, you don't have much time to talk to each of them. In return, you won’t always be able to get the full picture.

Other coaches tend to deliver generic solutions that don't really solve specific business problems. And you have to be more careful about this.

It's Challenging to Work with a Group

Working with a group is a challenging process. Just think about coaching a bunch of people with different goals, perspectives, and personalities at the same time.

It requires extra effort, patience, and a higher level of understanding. You might even ask for help from other coaches to make your program more valuable.

You'll meet some people who will try to take over the room, actively participate in the discussion, and outshine others who may be more reserved.

Simply put, a group coaching client may get more value while others fade into the background without meeting their goals.

So when coaching a group of people, it boils down to finding their common ground and making sure you help them overcome specific challenges.

You Need to Target More Clients

Whether you like it or not, you need to have better numbers in a group coaching program.

People are sheep. They tend to join coaching programs that have the highest number of participants. If you can't sign up people, you'll have a hard time filling an empty room.

So just like what other coaches do, you need to create and implement a solid marketing strategy that will attract and win over more coaching clients

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How do you build a successful group coaching program?

Whether you intend to launch a life coaching business or, like me, a marketing coaching business, these principles apply.

1. Keep your numbers small

You want everyone to engage equally in the group. Anything over 20, and there will be people whose voices go unheard. They won't get the results they need to make meaningful changes in their business or life.

So keep your numbers small. Because if you don't deliver results, you're likely to generate bad reviews, and that won't help your program.

2. Find the common goal

You want to create groups with common interests. If they're from vastly different industries, this can create friction and increase your churn rate.

But if you've built a group of like-minded individuals, you'll be covering topics they find relatable and valuable.

3. Get their feedback

Don't be afraid to ask group members what they like about your service and where there is room for improvement. Listening and acting on those lacks helps you deliver a world class coaching service.

4. Hold people accountable

Group coaching is about more than just sharing knowledge. Your job is to help move someone from point A to point B, and you can only do that if you identify goals and hold them accountable.

Check-in with them regularly to see if they're acting upon your advice and making tangible changes. If they're stuck, ask what's holding them back and how you can help them to move forward.

5. Celebrate individual wins

Remember, this isn't about you, it's about helping others to achieve. Whether that's a happier marriage, financial stability, or a healthy and fitter body doesn't matter.

When we celebrate our group wins, we acknowledge their hard work and encourage them to keep going.

I like to ask my group what is one thing they've achieved in the past week or month that they'd like to celebrate. What can you ask yours?

6. Tell someone when they're ready to graduate

I've got clients who have achieved amazing things while working with me as a coach, but there comes a time when I can't teach them anything else.

A good coach recognizes when there's still work to be done and when someone is ready to fly the nest. That's when you give them their wings.

7. Promote it

If you want your coaching program to be a success you need to promote it. Launch it to your email list, talk about it on your social channels, mention it on podcasts and share it with affiliates.

If someone has done coaching before they're more inclined to try it again, and using affiliates to promote your group on your behalf is a great way to attract high-value clients.

8. Go Digital

If you can offer group coaching sessions virtually, that's massively powerful. You can access a wider audience and avoid travel.

Successful digital web services require the right tools. You'll need a Zoom account, Google Workspace, Asana, or some other project management tool.

Group vs 1:1 - Are you ready to choose, coach?

To recap, group and individual coaching have their own perks and disadvantages. Both can be done over the phone, online, or in person. And you might find that it pays to offer group and private 1:1 training sessions.

No matter which service you choose, make sure you're committed to greatly impacting other people's lives.

Are you ready to make this commitment to yourself and change your life?

Let's work together to achieve the success you’ve always dreamt of. Become a business coach, build your lifestyle business, and get the big ticket to financial freedom.

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