How effective this catch-phrase was for our parent s in getting us to eat our vegetables, clean our room, or go to bed at a decent hour is debatable. But when it comes to motivating us to try a product or service, and it’s delivered by a trusted source with relevant reasons, it packs a different punch.

Statistics show that up to 45% of most businesses/brands are chosen based on the recommendations of others. Like many advertising ideas, that’s nothing new. A trip in the way-back machine shows this Faberge Organic Shampoo commercial with a memorable hook that supports the very notion from the data.

This spot also illustrates what is called referral lead generation-recognizing the sales potential available through a “warm market” including customers, vendors or other businesses that have an established association with your business or have purchased your products or services, and had a good experience.

A referral, however, is more than word of mouth. While it may begin as that, a referral goes further to encourage customers to participate in the sales process. Some different ways to grow referrals and save ad dollars:

• Permission-based emails to get the word out
  A Refer-a-Friend link for information to be easily forwarded to others
  An e-Newsletter to help you stay top of mind
  Audio/video testimonials to increase credibility and trust
  Affiliate web links for added exposure with reciprocal referral partnerships

Now, some companies consider the celebrity endorsement the ultimate referral . To me, it’s “faux real,” but I’ll save that for my next post-”Are you buying it?”