How to Get and Give Quality Referrals

By now I’m sure everyone has heard of the term networking – and has been out there meeting and greeting other businesses for many years. But do we really understand what SHOULD be involved in networking? That I’m not so sure of.

 

The overall concept of networking is to meet people in other businesses and to exchange cards and numbers. According to www.dictionary.com, networking is: a supportive system of sharing information and services among individuals and groups having a common interest. This, on the surface, is easily accomplished.

 

“Hi, I’m Nancy from Business Success Unlimited. Here’s my card.” You can give out a lot of business cards that way (and get them as well). But what is really accomplished here? Not much except getting rid of your cards.

There are actually a couple of forms of networking that go on in the business world on a regular basis. There are events such as an "After Hours Get Together" where people stand around and chat while munching on snacks and balancing a glass in the other hand. Here you have people bumping into you greeting you, asking you what you do and then moving on. You have very little time to get to know the other person, and most of the time the object seems to be to hand out as many cards as possible.

The other type of regular networking is a weekly or monthly meeting where people sit around a table, introduce themselves and share leads or referrals with each other. Today’s article will discuss this type of networking in more detail.

A referral group, as this type of meeting is often called, is a great form of marketing as you have a ready made audience that’s mission is to support other people in the group. However, all too often it seems that (in this form of networking as well as the other forms) people decide to get out there and network with only themselves in mind. In other words a “gimme attitude”. I can tell you right now, this is NOT going to work well for you. 

How this type of networking should work is that you go into a networking event or meeting with the idea that you can help others. YOU become their marketing arm. When you help provide them with quality leads (we’ll discuss this later), then they will, in turn, provide the same to you. How do you do this?

Called Spheres of Influence, most people have a circle of some 200 others that they know. And each of those 200 knows another 200 – an ever widening ripple of contacts for a business network to connect with. Here’s a scenario of how it might translate: 

Joe Realtor has been getting requests from his new home buyers/sellers for someone that can come into the home and fix little things like power washing or carpet cleaning. He asks the others in his networking group if they know of any really good handymen that can handle this type of job. Charlie Home Builder says, oh yeah. I have a great handyman service that I use all the time. Let me get in touch with him and have him call you. His name, by the way, is Harley Homebody.

Later that day, Harley calls Joe and they set up a time to meet and talk a little about what they both do and are looking for. Eventually, Joe has someone that he feels comfortable referring his clients to (his clients become happy campers) and Harley gets a lot of new business and can become repeat or additional referrals.

This is a simplistic way of describing how referral networking operates, but it gives you a good idea of a very possible end result when done correctly. But, another thing to keep in mind is the difference between leads and referrals. Often people in these groups are pressured into thinking that they have to provide names ... This can be anything from “I think I heard my neighbor next door say he was going to sell his house. Hey Joe, why don’t you give them a call.” to I saw a little league team that needs new t-shirts. Ms. Printer, why don’t you track down the Paulie’s Pizza and Sub Shop and tell them about your t-shirt printing business.” These are called LEADS and are basically nothing more than cold calls – or at the very best, lukewarm calls.

A referral, on the other hand, is like the previous example of the handyman. The person GIVING the referral makes sure that it is something that is really wanted and then does what he or she can do to arrange a “meet” between the two people that will be conducting the business together. The way to start getting these referrals is through creating a sense of trust between yourself and the other members of your group. It is not always quick and easy, but it is well worth it in the long run.

It can be very frustrating for someone to get lead after lead after lead and to have nothing ever materialize. You wouldn’t want to be in that situation would you? So, here are a few tips to get you started in the networking arena:

 

1. Make sure that when you provide a referral its one that you KNOW should be pursued. Talk to the person wanting the work first to make sure that he or she should be expecting a contact from the referral recipient. Then let the “recipient” know that they should call so and so, as that person is expecting their call. 

2. Always be on the lookout within your circle of 200 for people who need the services of those in your network and actively market their businesses for them with these 200 contacts. If you hear of someone needing something, talk to them right away to find out what it is they need and how someone in your group might be of service to them.

3. On the other side, if you are the recipient, follow up with that referral right away. Don’t let it grow cold and then become frustrated because it doesn’t pan out. When given a name/number/email, contact them right away. Tell them that you got their name (or whatever) from your colleague and was told that they needed x service – something you would be happy to sit down with them and discuss. Have your credentials ready and your praise for the colleague that gave you their name.

4. Don’t sit back and expect to start receiving referrals right away. It is a process in which you must earn the trust and respect of the others in the group. This can be done, in part, by following tips 1, 2 and 3 above. Also, you always need to provide the best quality service to your clients (and this includes the others in your group) that you can. By providing top quality the others know that you do what you say and they will feel comfortable giving others your name... Remember, its their reputation on the line (as well as yours) if you screw up the work they have referred you for.

Marketing and sales are two of the most important ways that a small business gets their clients and their revenues. Referral groups are a great, and inexpensive way to do that marketing and sales. Remember these tips and get out there and start networking. You’ll begin to reap the benefits soon.