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Be Referable

Written by: Bill Warner

Article Overview: We have all heard the old saying, "it's not what you know, it's who you know." Well, there is a lot to be said about that. Look back on the business you have won recently. How much of it came by referral from someone you know, versus a cold call to a prospect or an inquiry directly to you or through your website? Like many of the business people I meet, the majority of their business comes by referral.

Be Referable

We have all heard the old saying, "it's not what you know, it's who you know." Well, there is a lot to be said about that. Look back on the business you have won recently. How much of it came by referral from someone you know, versus a cold call to a prospect or an inquiry directly to you or through your website? Like many of the business people I meet, the majority of their business comes by referral.

The issue with creating a strong referral base is that the networking required to create it takes a lot of time and there doesn't seem to be much immediate result. Nevertheless, why is it a good idea to spend time on this anyway?

Be Referable

Jim Valvano, when I asked him how he won the NCAA basketball championship, simply said that "he always tried to be in a position to win." He didn't always win, but he aggressively created situations that had the potential to win. By intelligently pursuing these situations he often won big. In business, we have to create situations that will put us in a position of winning new business relationships.

Fundamentally, this means you have to be referable. The more people in the business community that know you, have respect for you, and are willing to tell others, the greater are your chances of winning new business. Being referable means:
* Business people know who you are
** Customers
** Competitors
** Service providers
** Suppliers
** Potential alliance partners
** Industry influencers
** Media
* What you do is understood in simple terms
* The value you create is easily explained
* Your positive reputation precedes you

By having the business community know these things about you and your business, the greater the chances that they will tell others, thus giving you a chance to win a new business relationship.

How to Become Referable

Becoming referable is a long term and continuous activity where you take all reasonable opportunities to meet people and get them to know what you are all about. This has to be done in a sincere and thoughtful way and with the attitude that you will give some of yourself before you expect anything in return. Here are some typical actions you can take to become lastingly referable:
* Take the time to meet business leaders in your industry by simply having a casual meeting with them where you are sincerely interested in learning about their business; not hyping your wares. Find a way to help them in some simple way and do it without asking for a favor in return. Most of them will ask you what they can do for you without you ever asking them. Don't worry. The favor you have done will come back to you later as a referral.
* Find ways to keep a "drum beat" about you and your business rolling. This can be done with a newsletter, industry articles, blogs, speaking engagements and simply showing up at networking events where you meet people in your referral network. In a value added way, people have to be constantly and consistently reminded about you and your business. Just like search engine optimization keeps you high on the first page of a search, this keeps you high on their list of the people who could refer you to a new customer or partner.
* Spend time in volunteer work with organizations that match your passion, that are providing a valued service, where you can add value and whose members you would like to meet. Be sincere about helping the organization and follow through with some form of helpful service. This will enable you to meet the people within the organization and establish a positive reputation. You don't have to sell your business to them. The ones who care about it will simply ask you and want to know more. You will become referable by your participation and presence.

The Benefits

If you spend the time to continually enhance your position as a referable person and business, it will eventually pay off. Don't expect immediate results. It takes many months and sometimes years to be recognized and respected. This means a lot of giving before receiving.

It often amazes me when I get a call from someone I helped over a year ago who now needs business help or knows someone who does. When these kinds of things start to happen to you, you know that your work to become lastingly referable is paying off.

Being referable will lead to many new business relationships:
* New customer prospects referred to you by the people who have confidence in you and your business
* Potential business partners that you might not have been able to contact without a referral
* Additional suppliers that might be a better choice for your business
* A wide selection of business service providers that could help your business as well as your customers' businesses
* Public recognition that could lead you to new relationships

On the flip side of the coin, you become a more effective referral agent. The more business connections you have will enable you to refer business assistance to the people and businesses that you are trying to help. Providing referrals is one of the most valuable favors you can provide to others. You just may get a referral in return.

This Is Networking With a Purpose

Some people call this networking. I call it networking with a value added purpose. Provide value to the people you network with and you will get many fold that value in return. This is not a series of one time events. It's a constant drum beat of value added communication with your network, enabling them to remember you first when they see an opportunity that might need help from your business.

Related Articles
  The Four Habits of Highly Referable People
  How to Get More Referrals
  How to Attract Referred Leads
  Are There Holes In Your Network?
  Who Do We Appreciate

Article Tags: alliance partners, business community, business relationship, business relationships, cold call, continuous activity, industry influencers, jim valvano, ncaa, ncaa basketball championship, networking, new business, referral base, reputation, service providers



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