Referrals are the lifeblood of many businesses. In fact, I have many friends that hustle for a year or two to build their client base and live off of referrals—no more cold calling.

    But for whatever reason, we in the catering and restaurant business hesitate to create and consistently use a referral system. My son Jerrod takes karate from David Deaton Karate. Mr. Deaton has an MBA and is not only an advertising expert, but one of the most polished marketers I know.

    Earlier this year my son Jerrod was mailied a letter from Mr. Deaton offering a $25 gift certificate in exchange for referrals. He pestered his Mom until she helped him fill out the referral form. He used the $25 certificate to buy a bow staff.

    The offer for the referral is strong enough to get a fair number into the studio and his staff is trained to convert enough into regulars to lower his customer acquisition cost from traditional media. He uses an offshoot of this every other Saturday where kids get a gold star for their uniform if they bring a friend to demo day on a Saturday.

    If my son would refer his friends for a gift certificate or a star, how many warm catering or party room prospects could you get from your clients for a little bonus gift? Whether sending your customers a letter requesting referrals or holding a catering open house with rewards for current customers that bring guests (prospects), referrals have a place in your arsenal.  

    And don't forget the built in goodwill that comes with a referral lowers resistance to buying your catering and party room services.