The Cheapest, Most Effective Ways to Find New Bookkeeping Clients

Ask any bookkeeper where they get new clients from, and I can almost guarantee most will say by word-of-mouth.  The reason for this is because we are in a “trust business”. 

As bookkeepers, we are in a position where we have intimate knowledge of our client’s financial situation are privy to their most sensitive information. So, if a business owner is in need of a bookkeeper they can trust, they usually ask around for a recommendation from a peer or trusted advisor.

So, as bookkeepers, how do we position ourselves to be the ones being recommended? One of the easiest, lowest cost, and more effective ways is to implement a referral strategy.

A referral strategy is a planned approach that businesses use to encourage their satisfied clients, business partners, or industry contacts to recommend their products or services to others. The objective of a referral strategy is to leverage the power of positive word-of-mouth and social proof.

A successful referral strategy will see happy clients or industry partners effectively become your ambassadors, generating qualified leads for your business.

Creating a referral strategy involves identifying potential referral sources and creating a simple process that encourages and track referrals.  It’s one of the lowest-cost methods of generating new leads, yet one of the most successful.

Despite the low cost of conversion and the high rate of success, many bookkeepers I speak to don't have a referral strategy in place. Perhaps it is so simple that they overlook it - thinking they need a flashy high cost marketing campaign, need to engage specialists, or need to prioritise digital marketing and social media. While all those things can be effective, and have their place, I often suggest that they start with the basics when it comes to lead generation  - namely a good networking strategy and a solid referral strategy.

Not only is a good referral strategy one of the most affordable ways of generating leads for your bookkeeping business, it is also one of the most targeted in terms of attracting qualified leads. A qualified lead is one that is most likely to take action and become an ideal client. And you increase your chances of attracted qualified leads if they are referred to you by people who already know and use your services, and know the type of client you are looking for.

You can develop a referral strategy that caters to the stage in the business lifecycle you are in, and that is relevant to your niche, ideal client profile, and business needs.

My Top Tips for Developing a Successful Referral Strategy for Your Bookkeeping Practice

1 – Ensure You Always Deliver Outstanding Services

The foundation of any successful referral strategy is providing exceptional services to existing clients and building strong, valuable relationships with industry partners and networks. Satisfied, happy clients, and partners who already have a high level of trust in you, and a positive rapport with you, are more likely to refer others to you.

Quality service delivery, and positive relationship building must be top of mind through the entire life cycle of each of your clients. Put some thought into how you may be able to elevate or reinforce your performance across the below areas. 

• Accuracy.
• Timeliness.
• Professionalism.
• Communication.
• Outcome and value delivery.
• Consistency and reliability.

2 – Identify & Reach Out to Ideal Referral Sources

Identify and list out those clients and industry partners/networks who you feel could potentially refer bookkeeping clients to you. You’ll be surprised how many opportunities there are once you sit down and start listing them all out - you may want to start with the below.

• Current clients.
• Accountants.
• Financial Advisors.
• CFO’s.
• Bank Managers.
• Start-up Incubators or co-working spaces.
• Lawyers.
• Industry Software Providers or Suppliers.
• Business Coaches / Consultants.
• Partner-up with a personal finance blogger.
• Franchise consultants.
• Virtual Assistants (not able to provide tax/bas services).
• Business Network Groups.
• Friends and Family.
• Insurance Brokers.

Once you have identified a number of potential referrals sources, think about how a referral relationship could be mutually rewarding. A referral partnership should benefit both parties involved, though the value that you provide to your referrers may take many forms, such as:

• Brand affiliation and industry authority - it may strengthen the referrers business to be associated with your own and it may also give them the opportunity to strengthen their own relationship with their client. By established a network of trusted providers for their clients, they create a service suite of 'approved / recommended' advisors who they know will deliver on service and value expectations.
• Reciprocal referral program - you may be able to referrer relevant clients to them also.
• Incentives - you may wish to set up a more formal affiliate program where the referrer receives a monetary or in kind reward for successful referrals. Tread carefully here as you only want to set this up with partners who you know will refer you for the right reasons - ie, being the best person / practice for the client (rather than for the incentive). Otherwise, you could be inundated with referrals who are not the right fit, are potentially D-class clients, and have been referred to you only to cash in on the incentive. This presents a problem on multiple levels. Also be sure to check with industry regulators to see if / how you need to disclose kick-backs.

3 - Educate Your Referral Sources

Make sure your referral sources understand the value you bring as a bookkeeper. Explain your services clearly and highlight the benefits clients receive from working with you. Provide them with information about your services and your niche to share with potential leads.  But most importantly, make sure they know who your Ideal Client is!  There is nothing worse than receiving a low-quality referral that is not a good fit but feeling obligated to then take that client on (side note - don't hesitate to politely decline a referral if they are not a fit).

4 – Nurture Your Referrers

It’s always nice touch to reward your referral sources with a gift as a token of appreciation for successful referrals. This can motivate your referral sources to actively refer you to others.  It could be a simple as a bottle of wine or a basket of goodies delivered to their office - these small tokens of appreciation will be highly valued!

5 - Ask for Referrals

When was the last time you actually asked for a referral?  Never hesitate to ask your satisfied clients and business connections for referrals. Most people are willing to refer others if they've had a positive experience. Request referrals during moments of high satisfaction or after completing a successful project or hitting a milestone.

6 - The Power of a Good Review

Leverage online platforms and tools to encourage referrals. Encourage clients to leave positive reviews or provide testimonials of your bookkeeping services to share on platforms like Google, Facebook or Linked-In. Positive online reviews, comments and testimonials generate valuable social proof, trust, awareness, authority and credibility. 

7 - Network and Collaborate

Attend industry events, seminars, and networking sessions to connect with potential referral sources and other professionals. Be it in person or across digital platforms, networking and building relationships with complementary service providers can lead to valuable referrals.  And remember, networking is not a magic bullet!  Don’t expect a flood of leads from attending just one event or joining one online group - be a regular, join in the conversation, build relationships and gain trust. Put in the work and you will get the rewards!

8 - Stay in Touch / Communicate Regularly

Maintain regular communication with your clients and referral sources. Send out newsletters, updates, or valuable content related to bookkeeping and business. Staying top-of-mind increases the likelihood of receiving referrals. 

9 - Measure and Adjust

Continuously monitor the success of your referral strategy and reset / refine as needed. Track the number of referrals received and converted into clients. Analyse which referral sources are the most productive / successful, and nurture them.  Identify the sources with lower quality referrals and adjust your approach accordingly.

10 - Document Your Referral Strategy

Developing a formal referral program should be part of your overall business and marketing strategy. Consider including elements such as:

• Referrer criteria and outreach strategy - who will you approach and how you will reach them?
• Value proposition - what you are asking from your referrer, and what you can provide in return?
• Referrer Info Pack - Summary of Ideal Client Profile, Niche, Service Menu and any important info so your referrers know what type of clients you are looking for.
• Measurement mechanisms - how will you measure success and conversion rates?