9 steps to a client referral system that gets the leads flowing
How highly do you value leads in your business?
For any small or medium business, leads should be the most highly prized currency — to be consistently sought and converted.
Without a steady flow of new opportunities, how do you grow? How do you take things to the next level? How do you prepare for the future?
There is one simple lead generation system that EVERY single business should be using and MANY are not — even though it’s absolutely FREE.
It is practically guaranteed to bring in a steady flow of opportunities if you design a system around it; yet most businesses either treat it as an afterthought or let it take care of itself completely.
LinkedIn? Facebook? Events? Webinars?
No. We’re talking about client referrals.
The low-hanging fruit
Many business owners admit that they get most of their clients by “word-of-mouth”. But ask them what system they use and they stare back blankly.
At the same time, they waste marketing dollars on campaigns (SEO, social media, paid search) designed to generate leads but which often don’t live up to expectations.
The truth is that they could be MUCH more effective in tapping into the large pool of warm leads right there under their noses!
Client referrals really are the low-hanging fruit when it comes to generating leads. Why spend more of your valuable resources to climb the ladder and pick the apples at the top of the tree if there are plenty of crisp and tasty ones lower down? It makes no sense.
To start realising the potential of client referrals, get smarter about designing a system around them. It should not be a matter of hope.
By following the nine steps below, you can implement a system that allows you to pick the lowest- hanging fruit much easier…
Your 9-step lead referral system
1. Get clear on your value proposition
What are you able to provide that most other businesses cannot?
For your client referral system to work in the long run, you need to understand your key selling points: why you’re unique. Peel back the ‘layers’ of your business and define what makes you special.
Keep this in mind, as you will use it to ‘sell’ the idea of your business to existing clients and to new ones.
Ask yourself: Why would businesses refer their clients to me rather than to one of the many thousands of businesses out there?
2. Trim your existing client list?
This step may seem a little odd. But many business owners are busy looking after low-value or ‘problem’ clients that result in limited time to properly serve higher value clients — or to take on new business.
If you are “flat out” looking after problem clients who bring little value to your business, find a way to trim them so that you can focus on more profitable new business: perhaps recommend them to another business that can better serve their needs? You may even be able to earn a referral fee from it!
3. Start by asking the question to your closest clients
The best way to get referrals is to simply ask the question. Yet this can be a perceived obstacle for some business owners. They feel awkward in asking for business and prefer to appear “flat chat” all the time.
There’s no harm in being busy but — as per point two above — what are you busy with? Profitable business or fire-fighting? The day you stop asking for new business is the day your firm stops growing.
If you have invested time in building relationships with your most valued clients, there is no reason why you cannot approach them by email or in the next meeting for a couple of names of businesses owners who would benefit from the unique service you provide (defined in point 1 above).
Start with the real low-hanging fruit to gain practice and confidence for asking the rest of your database.
4. Segment your database: Ask the right question in the right way
Once you are comfortable with asking the question, you need to systemise it so that it becomes part of your process of doing business.
You should consistently ask the question of both existing and new clients — and even of prospects.
For instance, with a prospect who has downloaded a free eBook or received a free business health check-up and found it useful, is it possible that they know others who would find these resources useful?
Most likely there would be: so your lead referral system can include those who are not yet clients of yours.
If you have not segmented your database, you will need to identify clients by their value, how long they have been with you, or what stage of the sales funnel they have reached.
You cannot shape your questions to a client of 10 years in the same way as you would ask a client of three weeks or a prospect who is not yet with you.
5. Set expectations from day one
Even before a prospect becomes a client, start setting the expectation for referrals.
Make it clear when they sign up: should they find your services of as much value as you would expect (just like all the other clients you show them via testimonials), you will request at least two referrals from them.
You can even specify “after the job is done”, “after one month”, or “after six months” (if they become an ongoing client).
6. Deliver on the expectation
After you’ve set the expectation and the time comes around, make sure you ask for the referrals as promised.
Automate reminders for this part of the process.
Decide whether you will ask only for contact details (email address, phone number) or a face-to-face introduction. A meeting may be possible if there is an urgent need for your services.
If there is no immediate need, request the details of businesses who may appreciate receiving your newsletter. You can include them in your mailing list or refer blog posts to them to help build the relationship over time.
7. Expand your horizons
Lead referral is not confined to your clients. As a business owner, you probably have a vast network of professional service experts such as accountants, lawyers, financial planners, banking contacts, etc.
Think a little laterally here and include these professionals in your referral system — start expanding beyond your immediate circle.
8. Get creative
Get creative with your ongoing referral system. Include a line in your email signature asking clients or prospects if they know anyone who would benefit from the value you provide (defined in Step 1, remember!)
Alternatively arrange special events that provide clients with value adds — and ask them to bring two business associates for free.
9. Show your appreciation
Whenever you receive a referred lead, don’t forget to thank the referrer — whether or not it results in business for you.
The fact that they have trusted you enough to refer one or more of their valued network to you is an excellent sign that you are doing the right things.
Show that you appreciate the relationship — a verbal or emailed ‘thank you’ may be enough. Or you may like to take it a step further and send a card or gift.
What could this look like for your business?
The maths on client referrals is as simple as it is eye-opening.
Say a business has 100 clients. And say that each client is worth around $5,000 per year to you.
Conservatively, imagine that one in three of these clients are able to refer two other businesses to you per year — and you have a 50% conversion rate on the referrals.
Before you start your referral program you have:
100 clients x $5,000 = $500,000 revenue
After the first year of your referral program you have:
The original 100 clients x $5,000 = $500,000 revenue
+
(100 x 33%) = 33 clients who referred x 2 referrals each = 66 referrals x 50% conversion rate = 33 new clients x $5000 each = $165,000 in new revenue.
TOTAL REVENUE NOW: $665,000 (33% growth)
Then imagine this compounded over the years. It’s excellent growth for your business just from referrals. Plus, you have all your other marketing activities bringing in other leads.
Few businesses can afford to let such an opportunity pass as they build their futures.
Implement the nine steps above and you will be well on the road to securing a steady flow of leads to your business from your existing client base and your prospects.
Need help with your accounting?
When you're looking for ways to save money, it's easy to focus on the big expenses. But sometimes the easiest savings are sitting in the things you pay for every month without really thinking about them. Subscriptions, unused services and small recurring expenses can quietly add up over time. Here are five simple things worth checking. 1. Audit Your Subscriptions Start by looking at all the subscriptions you're currently paying for. Go through your Apple App Store or Google Play Store accounts and check what you're being charged for each month. You may find subscriptions you've forgotten about, apps you no longer use or services that are automatically renewing. Even a few dollars here and there can add up to a significant annual expense. 2. Cancel Services You Don't Use If you've paid for a service that you haven't used in the past month, ask yourself whether you really need it. Unused streaming services, apps, memberships and other recurring payments can continue taking money from your account long after you've stopped using them. Cancelling an unnecessary subscription is one of the easiest ways to stop the leakage. 3. Negotiate Better Deals If you've been with the same provider for a long time, don't assume you're already getting the best deal. It may be worth contacting your provider and asking whether there is a better plan or rate available. This could apply to a range of services where you're a long-term customer. A few minutes spent asking the question could result in ongoing savings. 4. Set Reminders for Renewals Free trials and annual subscriptions can be easy to forget about. Set a reminder for when a free trial ends or when a subscription is due to renew. That gives you the opportunity to decide whether you still want the service before you're charged again. Your calendar or phone can prompt you. 5. Track Your Spending Small expenses are easy to overlook when they're spread across multiple accounts and services. Using a budgeting app or regularly reviewing your transactions can help identify areas where you're spending more than you realise. You may discover recurring payments or habits that no longer represent good value. Small Changes Can Add Up Saving money doesn't always require a major lifestyle change. Sometimes it's simply about paying attention to where your money is going and cutting expenses you no longer need. The article provided makes the same point: regularly reviewing subscriptions and cutting back on unnecessary expenses can help build a stronger financial foundation. saving costs things to look at At Ascent Accountants, we can help you look at the bigger picture of your finances and identify opportunities to make your money work harder for you.
Finding a caveat on a property you're looking to buy can be an unwelcome surprise. A caveat can prevent certain dealings with a property from being registered, which can delay a sale or prevent a purchaser from settling until the issue has been dealt with. It can also create problems with finance because lenders generally require clear title. First, What Is a Caveat? A caveat is a legal notice recorded against a property. Importantly, a caveat may only be lodged by a person or entity with a legal or equitable proprietary interest in the land. It effectively acts as a statutory injunction, preventing the Registrar of Titles from registering certain dealings with the property, such as transfers, mortgages or leases, unless the caveat is withdrawn, removed by court order or otherwise lapses. caveat on properties Why Might a Caveat Be Lodged? There are several reasons why a caveat may be placed on a property. These can include securing a debt owed by the borrower, protecting a buyer's equitable interest in land under a contract of sale, or protecting an unregistered or equitable mortgage. A caveat can therefore indicate that another party has an interest in the property that needs to be resolved. How Can a Caveat Affect a Property Purchase? If you're buying a property with a caveat on the title, it can complicate the transaction. For example, the sale may be delayed or prevented from proceeding until the caveat has been dealt with. It can also affect finance. Lenders generally require clear title, so an unresolved caveat may make it difficult to obtain or finalise finance. What Should You Look Out For? If a caveat appears on a property, you're considering buying, don't simply assume it will disappear before settlement. Find out: Why the caveat has been lodged. Who has lodged it. What interest the caveator is claiming. Whether the caveat needs to be withdrawn or formally removed. Whether it could affect your ability to settle or obtain finance. The type of caveat matters too. The source material identifies different types, including absolute caveats, subject-to-claim caveats, caveats lodged after notice, improper dealing with caveats and registered proprietor's caveats. caveat on properties How Is a Caveat Removed? There are several possible ways of dealing with a caveat, depending on the circumstances. These can include withdrawal by the caveator, statutory removal or court resolution. A withdrawal generally needs to be signed by the caveator and lodged electronically where required. There is also a process for applying for removal under section 138B of the Transfer of Land Act 1893. caveat on properties The caveator has 21 days after being served with the relevant notice to act, although the Supreme Court may order an extension in some circumstances. Don't Let a Caveat Catch You by Surprise If you're buying or selling property, understanding what is recorded on the title is an important part of the process. An unexpected caveat doesn't necessarily mean a property deal can't proceed, but it does mean there is an issue that needs to be understood and dealt with. At Ascent Property Co, we can help you understand the financial implications of a property transaction and work alongside your legal advisers to help you make informed decisions.
Are you using the logbook method to claim car expenses? The ATO has been increasing its audit focus on car expense claims, with particular attention being paid to both whether logbooks meet the requirements, and if the business-use percentage has been calculated correctly. Here are eight common areas that could cause potential issues with your claim. 1. Keeping a logbook in the wrong income year A valid logbook must be kept in the first income year in which you use the logbook method to claim car expenses. After that, a new logbook is generally required every five years. If you're not sure whether your current logbook is still valid, it's worth checking before relying on it for your tax return. 2. Not keeping the logbook for the full 12 weeks A valid logbook needs to cover a continuous period of at least 12 weeks. The 12-week period can cross from one income year into another, provided it includes part of the relevant income year. 3. Choosing your busiest 12 weeks It can be tempting to choose a 12-week period when you were doing more business driving than usual. But the business-use percentage from a 12-week logbook isn't automatically the percentage you can apply for the entire year. Your calculation needs to consider variations in how the car was used throughout the year. 4. Forgetting about a replacement car If you replace your car during the income year, you can't simply transfer your existing logbook to the new vehicle due to changes in usage. If you want to rely on the existing logbook for the replacement car, there are nomination requirements that need to be met. Otherwise, a new logbook may be required. 5. Writing vague descriptions of business trips The details matter. A logbook needs to record the relevant details of each business journey, including the dates, odometer readings, kilometres travelled and the purpose of the journey. Entries such as "business trip", "client visit" or "customer visit" may not be enough . The description should explain why the journey was made. 6. Reconstructing your logbook later Your logbook should be kept as you make the journeys, or as soon as possible afterwards. Inconsistent entries, duplicated dates, identical odometer readings or records that don't line up with other information can raise questions about whether the logbook was reconstructed from memory. 7. Getting business and private kilometres wrong Your business-use percentage needs to be based on a reasonable estimate of your business kilometres for the year. That means considering changes in your work, holidays, leave, changes in employment duties, changes in your work location and other variations in how the vehicle was used. 8. Forgetting your odometer records and receipts A logbook is only part of the record-keeping requirements. You also need odometer records for the relevant period, and car expenses such as registration, insurance and servicing generally need to be supported by appropriate records. What Should You Do? If you use the logbook method, don't assume that having a 12-week logbook automatically makes your claim correct and compliant. The ATO's increased scrutiny means it's important to make sure your logbook is valid, your entries are accurate and your business-use percentage reflects how the vehicle was used throughout the year. At Ascent Accountants, we can help you review your car expense records and make sure your logbook and business-use calculation meet the requirements before you claim.
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A new way to claim work-related expenses is coming for the 2027 tax return — but there is an important catch. From 1 July 2026, eligible taxpayers can claim a standard deduction of up to $1,000 for certain work-related expenses, without having to substantiate each expense individually. Sounds simple enough. But before you assume you can claim $1,000 on top of everything else, there are a few things you need to know. The $1,000 Is the Maximum The new standard deduction is capped at $1,000. It is designed to cover certain common work-related expenses, such as work-related phone and internet, home office expenses, stationery and some travel expenses. You can't claim the $1,000 and then claim those same expenses again separately. If you have actual work-related expenses of more than $1,000, you can continue to claim your actual expenses under the existing rules, provided you meet the requirements and have the records to support them. Do I Still Need to Keep My Receipts? Yes: and this is where it is worth being organised. If you use the standard deduction, you don't need to substantiate the individual expenses covered by it. But if you think your actual work-related expenses could be more than $1,000, keeping your receipts and records throughout the year will allow you to claim your actual expenses instead. There are also some deductions that aren't covered by the standard deduction and can still be claimed separately if you are eligible. It's for Your 2027 Tax Return The new deduction applies from the 2026–27 financial year, so you won't use it for the tax return you are preparing now. It will first apply to your 2027 tax return, lodged from July 2027. Is the $1,000 a $1,000 Tax Refund? No. The $1,000 is a deduction from your taxable income. It doesn't mean you'll receive an extra $1,000 back from the ATO. The value of the deduction will depend on your individual tax circumstances. What Should You Do Now? The best thing you can do is keep track of your work-related expenses throughout the 2026–27 financial year. When it comes time to prepare your 2027 tax return, we can look at your circumstances and determine whether the standard deduction or claiming your actual expenses is likely to give you the better outcome. At Ascent Accountants, we can help you make sense of the new rules and make sure you're claiming the deductions you're entitled to: without claiming the same expense twice!
