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Great Referrals Aren't Accidents

Guest post by: Ivan R. Misner

Article Overview: Make networking part of your relationship-building strategy, and you'll see real results.

Great Referrals Aren't Accidents

Just like casting for fish, the process of meeting people, staying in touch, and then asking for their business is something that requires patience and practice.

A few years ago, a long-standing member of a business networking organization was talking about canceling his membership--not because he wasn't getting enough referrals, but because his referrals were coincidental.

That's right. Despite a full year of getting great referrals, Mike (names have been changed to protect the foolhardy) didn't feel the results proved that networking was a viable business strategy for getting more referrals. He felt that the business he got was based on "chance occurrences"--one person knowing another, who happened to know him--and despite the fact that he kept getting these referrals as a result of his networking contacts, it couldn't possibly last. So he left the group.

Even though Mike's misguided reasoning led him down the wrong road, it raises a good question, and understanding the answer could help your business. The question is: Despite its chance nature, is networking something you can count on as a consistent means of getting more business? Of course it is.

Mike's situation boiled down to two things--repeatability and understanding. His training told him that the way to get more business was to target a niche customer by calling people from a demographics-based list. If he didn't have enough business, he needed to make more calls. Exactly how many more? He could figure that out, too, because the amount of business he got was directly proportional to the number of people he talked to. It was a repeatable process that he fully understood.

On the other hand, clients he got from referrals always had a story that he couldn't see being easily repeated. Sally knew Jim, who ran into Sue, who happened to be in his group and referred Mike the business. This understanding led Mike to conclude that the results were coincidental and couldn't possibly be repeated.

Mike's reasoning wasn't entirely off-track, just flawed. If you focus on the specific people who gave you the referral, rather than the process and relationships that allowed it to happen, then it's unlikely you will consistently get more business from networking.

But if you step back and ask, "Is it possible that somebody will know someone else who's looking for my services and will give me that referral?" Well, there's that repeatability--especially if you focus on building relationships--because there's always a "somebody."

NetworkingIs aLong and Winding Road

When it comes to networking and passing referrals, it's not about who's giving what to whom, and it's hardly a straight line. If you're thinking, "For every referral I give, I can expect one in return," it's time to put that idea to rest. Reciprocity is nice, but networking just doesn't work that way.

Think of referral-giving in the context of the Abundance Mindset, which is the awareness that there's more than enough business to go around. If you hear of a business opportunity that would be well-suited for a referral partner--in other words, not your kind of business--think of it as "excess business." When you pass this kind of excess business to others in the form of a referral, you'll wind up attracting more prospects who want to work with you.

Call it a gift from the referral gods, but when you do good things for others, those good things have a way of making their way back to you--often from a different person or group of people. Even if it seems that you're not directly benefiting from the referrals you're giving others, take note of all the other business that just happens to come your way.

• The guy who stumbles across your website and gives you a call.
• The old prospect you haven't heard from in months who suddenly wants to get together for lunch.
• The inactive client who wants to renew his contract with you.

Even though it seems happenstance, some or all of these occurrences are likely to be new business you attracted by giving away excess business (in the form of referrals) to people you know.

Network With a Net

Referral networking is a lot like catching fish by casting a net. Each fish comes to the net by a different path--each has a unique "story" that is not repeated. You don't focus on a particular fish and then try to get it to come to the net--in fact, you probably don't even see the fish until you pull in the net. Instead, you focus on the action of setting the net. You know that if you set your net correctly and consistently, fish will eventually come, no matter what path they take to get there.

The same is true for getting referrals. You don't have to worry about how a specific referral got to you because you understand the process of setting your net.

And the best part is your net can be working for you all the time. You don't have to be there whenever someone you know runs into someone else who could use your services--this means you can be "fishing" in many different ponds simultaneously and reaping tons of new business. This is especially true when you've become a referral gatekeeper and begin to get referrals not only from your own network of contacts but from the networks of others as well.

When it comes to networking, there is no coincidence about referrals. They are the inevitable cumulative result of the day-to-day activities of relationship-building. And even though those efforts can't be measured as easily as cold calls, the results are far more powerful.

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Article Tags: networking, networking strategy, referrals, relationships



Related Forum Posts
Re: Quote of the Day - "Referred customers are easier to deal wi - Great, but doesn't this link back to another post: "how others see you"? Referrals are an important part of your business, earning the respect of the referrer largely depends on how other see and value you. How you handle the referral customer helps determined whether they pass you onto others Negative news still travel farther and wider then positive news.
Re: Did you buy into the iPhone 3G craze? - Kevin, Arent you the EBay guy?? oh well, we all make mistakes....like me buying new tires at Active Green & Ross after I blew out a tire on the 401. I let the guy scare me into the sale and then when I took my care into my mechanic he told me I got hosed....and to never let anyone scare you into buying stuff again.... anyway, I'm glad you got the new battery in any case. I think we will soon be able to go completely without contracts so we arent held hostage... J
Kevin, are u an ebay expert? - [quote="TheRainmaker":3j4dw900]Kevin, Arent you the EBay guy?? oh well, we all make mistakes....like me buying new tires at Active Green & Ross after I blew out a tire on the 401. I let the guy scare me into the sale and then when I took my care into my mechanic he told me I got hosed....and to never let anyone scare you into buying stuff again.... anyway, I'm glad you got the new battery in any case. I think we will soon be able to go completely without contracts so we arent held hostage... J[/quote:3j4dw900] Are you an Ebay expert? If yes do you have any report on your expertise?
Re: How do you get your clients? - I think staying away from gathering clients strictly online when first starting out is probably a good idea. Your first few clients could maybe be people you know, or know through somebody that may require some of your services. Another good way of gaining new clientel is offering your first few clients completely free service in exchange for placing your business card or promotional material in their business if you're doing b2b sales. Referrals are the lifeblood of many small businesses.
Re: How to Promote Your Blog – The Definitive Guide to Promoting - Great information. Thanks so much for your help. I'm looking into google indexing right now and I'll be improving SEO moving forward. I checked out your blog and sites, too. Great content. Thank you...


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