A Reality Check for the Top 3 Referral Delusions

by: Christel Wintels

     “Give your head a shake!” is a common retort to some of the less-than-brilliant things we’ve all been known to think and say (out loud) from time to time, especially when it comes to business referrals and where they come from.  No, it’s not time for the “cabbage patch” talk, but it is time to dispel the myths of where the best referrals originate!

Delusion #1: You should always get a referral when you’re in front of the referral source.

The truth is - if your referral strategy requires you to be present in order to get a referral, you’re putting severe limits on your capacity to generate new business.  Why limit yourself? Instead, train your referral team to listen for the expression of a need and then swiftly act upon them on your behalf by offering your business card or a personal introduction.

Delusion #2:  To maximize your chances of getting good referrals, it’s best to move from one networking group to another at regular intervals.

Dr. Ivan Misner refers to this approach as “scorched earth networking”… and it’s about as friendly as it sounds.  Smart business people today understand that the best way to build a business is through relationships.  And those relationships take time to develop.

Thinking, “I’ll just join such-and-such group for six months, get all the business I can, and then I’ll move on” is a complete fallacy.  It would be like planting a cactus in the desert, waiting for six months, and at the end of that time, saying “well, it’s not working here. I’m going to dig it up and go plant it somewhere else.”  As crazy as that sounds, it’s also exactly what misguided people do when they join networking groups.  Plain and simple:  it’s a bad idea to move around unless you’ve got serious issues with that networking group. You want to stay and build relationships - whether you’re talking about a Chamber, Board of Trade, a service club or other network. Avoid “scorched earth networking.”

Delusion #3: Your best and only source of referrals is your customer.

Totally delusional. The reason some people fall into this trap is that they’ve been conditioned to believe it. They’ve never really pursued any other potential referral sources. Let me clarify. I’m not saying customers aren’t a source of referrals - but they’re not the only source and they may not be the best source. While customers are a great referral source, also know that if you can develop relationships with other businesses, they could be an even better source of referrals.  Why?  When you work with other businesses that are compatible with your own, you create symbiosis with them - when you’re referring to them, they’re referring to you!

In closing, stop shaking your head, start shaking hands! Network for the long term, and build your business brilliantly through good solid referral sources. Didn't hurt a bit, did it?  

Posted in: Managing your Business