Every business needs and wants referrals. However, there is a kind of referral that you accept and a kind that you cultivate.
We are all happy to accept someone sending us a referral… someone we can turn into a customer. But, most of the time, these are random, occasional happenings. They happen when someone who knows us or our business likes us and mentions us to a friend, acquaintance, or business associate.
The referrer will happen upon the person, remember us, and refer the person to us. It may or may not be a good fit for us. Let’s call this a result of a referral source.
Most of us are happy to get any kind of referral, even those that may not be a great fit for us. After all, it’s a start… and the thought is what counts, right? And who doesn’t want a potential customer?
But, what if you could get people referred to you that were a really good fit for you and the product or service you provide? Wouldn’t that be wonderful? Isn’t that what we all want?
Additionally, some of us think that if we go to the right networking group, we will have that happen. (Sometimes these are called “leads groups” or “referral networks” or “networking groups”. ) I know people who get referrals from these groups, but most of them are merely being referral sources.
So, if we aren’t really looking for referral sources, what are we looking for? Referral partners.
Referral partners don’t just send you every person they run across. No, they send you pre-qualified, pre-sold customers.
Let’s look at an example to show you what I mean.
Let me introduce you to Marty who is looking for an auto mechanic to work on his car. While Marty is in Frank’s shop picking up an order he says, “Yeah, that car is starting to get old and its gas mileage is starting to drop. I need to take it to somebody and have it looked at. I used to work on my cars myself, but today with everything computer controlled, you need thousands of dollars of equipment just to check the oil.”
Frank says, “You know, I have a guy in my networking group who works on cars. Just a second, I’ve got his card here, somewhere. Here it is. Bill’s Auto Repair. Why don’t you try him out?”
Marty takes the card and heads off. He might or might not take his car to Bill’s.
Frank was a referral source. And kudos to Frank for remembering and trying to help out a fellow business owner.
But what if Frank was a referral partner?
Frank might say, “You’re in luck! I know a guy who’s a wizard at fixing cars. He’s owned his own shop for about 7 years, but he’s been in the business for twenty. He knows what he’s doing and he won’t give you the run-around. He’ll tell you what you need and what it will cost. He doesn’t pull any punches but he won’t recommend something that you don’t need. And he’ll tell you if it is something that can be put off. You know what? I wouldn’t have anybody else work on my car. Go to Bill’s Auto Repair and tell him that I sent you. He’ll take good care of you.”
Is Marty likely to take his car to Bill? Of course. And so would you if you were given that kind of referral. In fact, you would drive past 3 other auto repair places to get to Bill’s.
Remember, a referral partner sends you pre-qualified, pre-sold referrals. They aren’t just “leads”. They are potential customers who are ready to give you a try.
Naturally, our goal will be to cultivate referral partners rather than sources. But that’s a subject for another time.
Have you had an outstanding experience with networking or referrals? We would love to hear about it. Use the comments and share with us.