Relationships + Referrals = Revenuestring(35) "Relationships + Referrals = Revenue"

Successful business networking is based on developing relationships with the people in our networks. When people get to know, like and trust each other, they are willing to make introductions and referrals to contacts in their other networks. Those referrals can turn into new customers and clients, adding new sales for our business. That is how Relationships + Referrals = Revenue.

Relationships

To create success and harmony in our lives, it is important to build and maintain our  relationships – in our home, in our work, and in our community.

HOME
We get busy with day-to-day life, especially if we are working from home, and sometimes we take our family for granted. Remember to:
      – Be grateful. Tell the people in our homelife how much we appreciate them. Be specific, be sincere, and tell them often.
      – Show gratitude in a way that means something to them. We often treat others the way we like to be treated. Understanding behavior styles and recognizing the preferences of the people in our lives allows us to share our gratitude in a more meaningful way.  

WORK
Whether we are an entrepreneur or an employee, we spend a lot of time at work. We have business relationships with our team and co-workers.
Remember to:
      – Say thank you. YOU know how much you appreciate them, let them hear it.
      – Be helpful – ask, “How can I help you?” to create beneficial teamwork.
      – Avoid the “it’s not my job” attitude. Expect that everyone contributes in whatever way is needed to achieve success for all.

COMMUNITY
We are part of the community that we live in, whether it is small or large. Our community pulls together when times get tough and celebrates together when things go well.
Remember to:
      – Get involved with a service organization or a service project in your community.
      – Commit to regular attendance and participation with the groups you are part of.
      – Contribute your time, treasure, or talent to help others.

Referrals

We know that it takes time for others to have the confidence in us to get referrals from our network. When we have invested the time to establish strong relationships, and have given referrals to our networking partners, we move from visibility to credibility in the VCP Process®.  Remember to:
      – Actively listen and look for potential referrals for members of your network.
      – Follow up with networking partners to learn how the referrals you gave turned out.
      – Thank your referral partners for connecting with and taking care of the people you referred to them.

Revenue

We can only move to the “P” in the VCP Process – Profitability, after we have obtained credibility with our referral partners. This is after we have built strong and deep relationships, asked others how we can help them, and given referrals to them. That is when we begin to receive referrals for our business, and the revenue comes naturally as a result. Those referrals may come directly from people we gave referrals to, however, they often come from other indirect sources. When we give to others, in our home, our work, our community, it comes back to us in a variety of ways.

In BNI, we call this Givers Gain® and it is our principal Core Value. It is based on the age-old concept of what goes around comes around. Our relationships bring us referrals, which lead to revenue. When you help others, and they help you, everyone does better.

Don’t Keep Score

Don’t Keep Scorestring(18) "Don’t Keep Score"

When it comes to business networking and passing along referrals, it’s not about who’s giving what to whom. There is no rule that says, “For every referral you give, you can expect one in return.” Similarly, when you hand out more referrals, it does not mean that other business professionals will automatically do the same. It just doesn’t work that way in referral marketing.

If you hear of a business opportunity that would be well suited for a referral partner – not a competitor – 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.

There are plenty of fish in the water. Most fishermen don’t see themselves in competition with the other person whose fishing boat is a hundred yards away. They know there is a plentitude of fish, enough for everyone. In fact, if they pass each other on the way back to the shore, they’ll probably wave to each other and ask if they did well and how many fish they caught.

Do Good Things for Others

The principle of “sowing and reaping” states that when you do good things for other people, those good things have a way of coming 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 are giving to others, take note of all the other business that “just happens” to come your way:

  •         The person who checks out your website because a friend shared your blog post on social media 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 contacts you to say they want to renew their contract with you.

Even though it seems like happenstance, some or all of that is likely to be new business you attracted by giving away other business, in the form of referrals, to people you know. You can attract new business through the relationship-building process you commit to and can strive to become a networking catalyst to ensure that these things happen on a regular basis.

I recommend that you don’t keep score. Instead, think of giving referrals in the context of the “abundance mind-set,” which is the awareness that there’s more than enough business to go around.

What is your experience with receiving more after giving more?

The-Willing-Conversation

The Willing Conversationstring(24) "The Willing Conversation"

Do you recall playing with magnets as a child? Depending on which way you turned the magnets, they were either attracted to or repelled by one another. As an adult, we may find ourselves feeling six years old again when we make a phone call to a referral who turns out to not be a referral at all. Similar to a magnet turned the wrong direction, you are not being embraced. Rather, you are being resisted. The referral you were given that should have been a “warm introduction” quickly turns into a cold call.

We all want good referrals – people who want to talk to us. We want to give and receive referrals that are willing conversations about the products and services we offer. To receive more effective referrals from the members of our business networking group, we must help them understand our business and our target market enough to identify a good referral for us.

Here are four tips to follow that can lead to more willing conversations.

  1. The Needs Assessment

It is our responsibility to be very clear and specific with our referral partners about what constitutes a good referral. This is a combination of an ideal prospect profile and the problems that we can solve for them.

This is an example of a clearly defined target market is for a corporate coach:
A small to medium-sized company with fewer than one hundred employees. They are closely held, often family-owned, and regional with locations in three or fewer states. They pride themselves on higher-than-average retention of their employees due to a reputation of treating them like family. They are in a competitive industry and are committed to gaining an advantage.

  1. Your Unique Selling Proposition

Do you have dozens or hundreds of competitors in your marketplace? You probably do. That means your Unique Selling Proposition (USP) is very important because it allows you to stand out among your competition.

Your USP is a brief description of the purpose of your business, stated in the most concise and compelling way possible, in order to help others understand the unique value of what you do. Your USP tells people the type of client you work with and the benefits you provide to them.

What are you saying that makes you stand out? What do you do that your competition cannot touch? At the very least, figure out what you do better than your rivals and go beyond simply saying “good customer service”.

  1. Why Are You in Business?

What is your passion? Why do you go to work? Unfortunately, one of the most popular answers to this question is “To make money.” That’s the worst answer a business professional can ever give.

Why are you in your profession? How do you change lives? That’s what the referral partners in your business networking group need to know. Remember, passion is referable. You need to go deep and identify your “why” if you want to truly connect with people on a personal level.  

  1. What is Your Emotionally Charged Connection?

Your Emotionally Charged Connection (ECC) is a phrase, leading to a story, that your referral partners can recite when referring to you.

We all have an ECC. It was something that happened to you, often during childhood, that lays the groundwork for who you are as a person. It can be positive or it can be negative. Many people are not consciously aware of their Emotionally Charged Connection, yet it is the reason we get up in the morning and do the things we do every day.  It’s driven by the heart, not the checkbook or the head–there’s a big difference.
You can read about my ECC here.

The better you become at sharing the information in these tips with your business networking group, the more likely you are to feel like the magnet that attracts instead of the magnet that repels. Your referral partners will be able to give you good referrals that lead to the willing conversation.

What have you shared with your network that has helped you gain willing conversations with prospective customers?

Networking Is All About Referralsstring(33) "Networking Is All About Referrals"

Yes, it is true that networking IS all about referrals. However, it may not be all business referrals. Even business networking may not be all about business referrals. It can be about sharing ideas, resources, contacts, and information that will help others be successful in their business. Networking is more than just passing referrals for business. Networking can also be about helping others improve their personal, social, and spiritual lives.

Mindset and Skill Set

Networking takes both a mindset and a skill set.
A mindset is a mental attitude or inclination. A skill set is a collection of skills and abilities that can be applied to a professional or creative endeavor.

The mindset for successful networking is helping people – the concept of Givers Gain®
and the law of reciprocity. The skill set is knowing the appropriate techniques and applying them in the right situations. Having the right attitude is half of what is needed. However, if you don’t apply the skill set, it doesn’t matter how good the mindset is.

Conversely, many people acquire a good skill set but fail to develop the right mindset. That is the transactional versus relational approach to networking.

Transactional vs. Relational

If you are focused on the transaction – simply making a sale, you are never going to create the relationship and trust needed to generate the business referrals you seek. I’ve seen so many people say, “Hello, it’s nice to meet you,” and then jump right into business without getting to know the other person at all.

A survey I did for my book, Business Networking and Sex (not what you think), showed that people who focused first on building relationships and then on business, scored higher in success. They said that they were much more successful at networking than people who focused first on business and then relationships.

Remember, it’s great to have a large network, but if your network is a mile wide with lots of people and very few deep relationships, it will never be powerful. A deep network contains the contacts that you know well and who know you very well, too. Those are the contacts who develop referral opportunities for their networking partners.

Yes, networking is all about referrals. And those referrals become possible when you change your plan from focusing on business transactions to focusing on building business relationships. When you invest time in business networking and really get to know your fellow networkers, amazing things can happen.

What networking success have you had by building strong business relationships? I’d like to hear your story in the comment section.

Referrals Work Both Ways

Referrals Work Both Waysstring(24) "Referrals Work Both Ways"

When you receive a referral from your networking group, it directly benefits your business. When you give a referral to someone in your group, it strengthens your network while benefiting your referral partner.

If you have a growing customer base, you’re going to be generating a lot more business for your referral partners. To strengthen your referral network and keep your business growing, you need to make sure your networking partners can handle all the referrals you will be providing.

Because referrals work both ways, it is important to build trust and develop deep relationships with your fellow networking members. You want to have One-to-One meetings with them; get to know them and their business well enough to understand the scope of their services and products. You can ask them detailed questions about their company to find out who their ideal customers are and how they are able to best serve them. This will help you identify possible referrals for them. You may want to ask about their plans for business growth to determine if they can accommodate the potential increase in clients from future referrals.

When you offer your referral partner a business opportunity they can’t handle, several things can happen. They may try to provide the product or service but do a poor job, upsetting the customer – your friend or colleague – which can damage your reputation.

They may pass the referral along to another businessperson that you don’t know, taking control of your referral relationship away from you and putting your reputation at risk. Or they may decline the referral, forcing you to spend additional time finding another person to give the referral to. You may have to go outside your network to put the prospect in touch with someone who can get the job done, which defeats the purpose of your referral network. You may even have to admit to your contact that you cannot help them after all.

Your ability to handle referrals from your network is equally important to your network’s ability to handle referrals from you. If your business grows big and strong but your referral network doesn’t, you will eventually become a network of one.

To keep this from happening, recruit new people and new professions to extend your network for the benefit of all members and take every opportunity to enhance your networking partners’ businesses. A true master networker works on building not just their own business, but the businesses of their fellow networkers, too.

How I Learned About the Power of Testimonials

How I Learned About the Power of Testimonialsstring(45) "How I Learned About the Power of Testimonials"

I learned about the power of testimonials in 1985 shortly after I started BNI®, the networking group I founded to get referrals for my consulting business.
At that time, there was only one chapter. During our weekly meetings, we followed an agenda similar to the one that over 10,400 BNI chapters use today. During the meeting, each member gave a weekly presentation about their business. Then we introduced our visitors, followed by our featured speaker’s presentation. After that, we passed referrals.

During this last part, if you had a referral to give to fellow members, you stood up when your turn came and said, “I have two referrals for Joe and one for Angela, and here’s what they are.” If you didn’t have any referrals, you simply said, “Pass,” and the next person would take their turn.

We’d been meeting for about two months, and at the end of one meeting the chiropractor in our group came to me and said, “Ivan, I haven’t gotten a single referral yet. I know it takes time, but here’s what concerns me: Nobody has even come up to talk to me or asked a question about chiropractic care. How can they refer me?”

I said, “You’re right. You’ve got to get them to use you so they can refer you. Why don’t you offer a free initial consultation to get them to come in and see what you do and how it works? Then they’ll be able to refer you. Here’s an idea. At next week’s meeting, just stand up and offer everyone a free first visit—even throw in an X-ray and do an adjustment—so they can see what chiropractic care is really all about.”

The next week when he did that, only one person out of the entire group said they would take him up on his offer. The chiropractor came up to me at the end of the meeting and said, “Brilliant idea, Ivan. They didn’t exactly flock to me.”

The Power of First-Hand Experience    

The following week, the meeting was moving along nicely, we were passing referrals, and it came around to this guy who had visited the chiropractor. He stood up, hesitated, looked at me, and said, “Ivan, I don’t have a referral today, but I don’t want to pass.”

As President of the chapter, I was running the meeting agenda, so I asked him, “Okay, then, uh . . . what do you want to do?” He said, “Well, I’d like to say a few words.” I said, “O-o-o-kay, well, uh, what do you want to say?”

He said, “Well, I just want to talk about Dr. Rubin. I had an X-ray done. He showed me all around his facility, explained all the things that he did, and then he did an adjustment.” He continued, “I’ve had lower back pain for about seven years. Nothing incapacitating, just a nagging ache that bothers me when I stand too long. For the first time in seven years, my back doesn’t hurt! You all are crazy if you don’t take him up on this offer! I just wanted to say that,” then he sat down.

I looked around the room and saw people picking up pens and filling out referral slips for the chiropractor. I thought, Wow! My agenda doesn’t work! You can’t just tell people to pass; you have to give them a chance to talk about the business they’ve done with other people! It’s critical!

That’s when we started the BNI Testimonial. From that point on, if you didn’t have a referral to give, you didn’t just pass. Instead, you gave a brief testimonial about the business you had done with another member of the group. That way, your experiences would become my experiences, and I could refer the member to somebody else.

My lesson about the power of good testimonials has helped BNI chapters around the world and can be beneficial to all networking groups. Without testimonials, networking groups are missing a great opportunity to generate more referrals for their members.

I invite you to share your experience about a good testimonial.

The Power of a Good Testimonialstring(31) "The Power of a Good Testimonial"

What is a testimonial and why does it matter?
A testimonial is a statement testifying to benefits received. It is based on personal knowledge or belief. A good testimonial can compel someone to action.

In business networking groups, a good testimonial from a trusted referral partner provides credibility for another person or company that can lead to new referrals from those who heard the testimonial.

The power of a good testimonial comes from the transference of trust, which creates the willingness to try those products and services personally, and/or recommend them to others.

Three Elements of a Good Testimonial

  1.   Focus on One Person

When sharing testimonials about people in your networking group, only talk about one person at a time. Talking about every single business where you had a good experience can be overwhelming to the person you’re conversing with. By focusing on ONE company in your testimonial, you can go into greater detail about the products and services you have used. Talk about your experience with that one businessperson and how good they were.

  1. Be Specific

Talking in generalities is ineffective. Saying “They’re great.” does very little to convey the extent of the positive experience you had. Instead, talk specifically about what makes your fellow member’s services good. What did they do right? How friendly, speedy, or communicative were they? How did you feel after the experience? The more specific you are, the better the testimonial will be remembered. Specific is terrific.

That phrase comes from Ken Blanchard’s book, The One Minute Manager, which says that effective praising must be specific.

  1. Give a First-Person Testimonial

Whenever possible, make the testimonial a first-person endorsement. Tell others about your personal experience with your networking group’s members, always being specific. Talk about the problem you had and the way that professional or company helped solve it.

If you have not yet used their products or services, have you personally talked to someone who has? If so, you can turn that third-person endorsement into a first-person testimonial by saying something like this:
“My client (or my friend, or my associate) told me that they hired this person to do this work for them and they did it really well. This is what they said…” Then be very specific about sharing the details of your client’s experience with that company, which will make the testimonial stronger. 

The power of a good testimonial is that it can become an instant referral multiplier. Remember that powerful testimonials focus on one person or company; they are first-person endorsements when possible; and they are very specific.
Have you experienced the power of a good testimonial? I would love to hear about it in the comments.

The Boomerang Effect

The Boomerang Effectstring(20) "The Boomerang Effect"

The foundation of building a successful word-of-mouth-based business involves giving referrals to others as well as connecting people so that they may increase their business.

If you know how to give good business referrals to others, and consistently make beneficial introductions to connect people to each other, you will enjoy the Boomerang Effect. The Boomerang Effect is having a referral that you gave out to someone else come back to you in the form of new business.

In the early years of BNI®  I received a referral from someone in Los Angeles to whom I had sent business in the past. That referral became my client and they referred three more people from all over the U.S. who did business with me, too. That particular boomerang kept coming back again and again.

Actively Listen for Good Referrals

To consistently give good business referrals to others you must become a good listener. Throughout your day, actively listen for people to express a need that is represented by someone in your personal network of contacts. Remember, a good networker has two ears and one mouth, and uses them proportionately.

Listen to what people have to say, especially when they share their frustration about a problem that needs solved. “My computer is SO slow!” “I need more vehicles for the company fleet.”  “Our office printer just quit working.” “We’re waiting for the insurance company to return my call – from 2 days ago!” Then refer them to a trusted member of your networking group who can provide the solution to their needs.

A Referral Is an Opportunity

Keep in mind that a referral is not a guaranteed sale. When you give a referral to your networking partner, it is an opportunity for them to talk with someone who is in the market to buy or use a particular product or service. You can view referrals as either hot, warm, or tepid.

Hot Referral – this is someone actively looking for a service or product right now who is personally introduced by you to your referral partner. You told the prospect about your business friend, how good they are at what they do, and shared your confidence about their professional ability to help them with their needs. They are ready to set an appointment or have a call as soon as possible.

Warm Referral – this is someone who has been shopping around and is willing to talk with another provider of that product or service. You have taken the time to give them some background information about your referral partner and perhaps told them a testimonial about someone in a similar situation that they previously helped. You offered to make an introduction and asked when they want your business friend to contact them.

Tepid Referral – this is someone who expresses an interest or wants to talk to someone in a certain profession, however they are not in the market to proceed at this moment. You told them you know a professional who will be glad to answer their questions and provide information to help them. You gave them your business contact’s name and phone number and asked if they would like to receive a call from them.

Sometimes a referral that you give to someone else boomerangs as new business for you. It may take days, weeks or even months to return to you, and it may be from someone else rather than coming directly from the person you gave the
original referral to. However, that IS the philosophy of Givers Gain® and it is based on the age-old concept of “what goes around comes around”.

Have you experienced the Boomerang Effect in your business? I invite you to share in the comments below.

How to Get Your Dream Referralstring(30) "How to Get Your Dream Referral"

An effective way to grow your business is with referral marketing. A referral is the opportunity to do business with someone who is in the market to buy your product or service and has been told about you by a mutual friend or associate. Business referrals made with a warm introduction are much more effective than an unsolicited cold call to a prospect.

Referrals in business are good; Dream Referrals are great! What IS a Dream Referral? A Dream Referral is one of those clients who will make a significant impact on your revenues for the year. It’s that wonderful customer that makes your smile, AND your company’s profits, bigger. However, before you can get your Dream Referral, you have to know who or what it is.

First – Identify Your Dream Referral

Have you ever said, “I want to meet anyone who needs my services.”? If you answered yes, has your generic request for a new contact ever resulted in a referral? Probably not. That type of ‘anyone’ request is much too vague.

One of the skills of networking is to remember that Specific is Terrific.
Describe your Dream Referral in detail:

  • Are they a person or a company?
  • What is their name or their title?
  • Where are they located?
  • What do they look like?
  • What is the exact type of business or profession that they are in?
  • How can you help them, what problem do they have?
  • Which of your products or services do they need?
  • What benefit will they receive from each of your products or services?

Next – Tell Others About Your Dream Referral

Now that you have identified exactly who and what you are looking for, teach your network what your Dream Referral looks like.

When referral marketing, if you use a catch phrase that is too broad and generic it will limit the effectiveness of the results that you get. Instead, be very descriptive as you talk to your networking partners, so descriptive that it is like that person is in the room with you. The more details you provide, the greater the likelihood that your referral partners will recognize that person when they come across them outside of the business networking meeting!

To increase and grow business through referrals, it is important that YOU know your own personal Dream Referral. Then you can educate your network on how to help you find it. If you do not know precisely who that ideal client is, your networking partners are unable to go out looking for them and connect you to them.

I would love to hear about YOUR Dream Referral in the comments below.

Symptoms of a Good Referralstring(27) "Symptoms of a Good Referral"

As a professional, do you want to get more referrals? Of course, everyone says YES. Here is a technique that you can use now that will directly lead to generating more word-of-mouth business for you.

Educate people on the “symptoms” of a good referral so when they’re out in the field and with other people, they will immediately know what to look for in a potential ideal client for you.

Identify the Problem to Get Relief

Think about it this way. If someone went to a medical professional and told them that they had a headache, sore throat, and were sneezing all the time, the doctor would probably ask if they spent a lot of time outdoors. If so, they might prescribe an anti-allergen treatment because, based on the symptoms, it sounds like the patient has seasonal allergies.

Notice that the description of the problem, the symptoms, came first and then came the plan for relief.

What if that could happen in your business?

Make it “Top of Mind”

Callan Rush, author of Wealth Through Workshops, refers to the “top-of-mind” problems of your prospective clients. Ask yourself: What is the greatest challenge that my customers face on a regular basis? What need does my target market have that my products or services can fill?

When you identify those problems, you can effectively share them when you are talking to others and include them in your marketing materials.

Share the Trigger Points

Think about the trigger points, an event or scenario, that happen in someone’s life which triggers that person to have a new need. For example, instead of a realtor saying, “If you know someone looking to buy or sell a home, let me know”, they can be more specific with the circumstances surrounding the target market before a future home buyer needs a real estate agent.

If first-time home buyers are the target market, the realtor can educate their network on some potential triggers leading up to the transaction of buying a house.

These triggers may include:

  • People who are recently engaged or getting married and need a place to live.
  • Couples who are expecting, or just had, a new baby and their place is too small.
  • Parents of college-age children who have left home, and their place is now too big.
    Or they want to buy a house for the college student rather than paying rent.

These are all symptoms of a good referral because they are related to activities that usually result in buying or selling a home. Coach your referral partners on how to spot the symptoms associated with people who need your produce or service as opposed to just saying “If you run into someone looking for a ____(fill in your industry), that would be a great referral.”

When you educate the people in your network about the specific symptoms or conditions that your business can solve, it becomes easier for them to give referrals to you.

I’d love to hear your comments about how you use this technique in your business.

building deep referral relationships

Get More Out of Networking by Building Deep Referral Relationshipsstring(66) "Get More Out of Networking by Building Deep Referral Relationships"

To become successful at networking, you need to be building deep referral relationships. Many people rely on referrals from others as a primary source of business. However, not everyone who relies on referrals is successful.

Many people have surface-level referral relationships.  They know just enough about a referral source’s business to get by. They probably could not tell you anything else about the business than you can read on their business card. They have not built enough social capital with their referral relationships to count on them when they need something.

Building deep referral relationships is almost completely dependent upon the social capital you have built with someone. Social capital is like financial capital. To amass financial capital, you have to invest and grow your assets. You have to have money in the bank before you can make a withdrawal.

Building Social Capital Is the Groundwork for Future Payoff

In this video, I discuss why Building Social Capital is one of the best investments you can make to secure future success for yourself and others with whom you network.

 

Do you have a personal story about social capital similar to the one I shared in this video about Alex? Please share your story in the comments below about how you have built great social capital with someone who is now just itching to help you in any way they can.

Are You Building Deep Referral Relationships?

Before you ask for a referral, make sure you have built a deep referral relationship first by knowing the following points about that person:

  • You believe they are an expert at what they do.
  • You trust them to do a great job and take great care of your referred prospects.
  • You have known each other for at least one year.
  • You understand at least three major products or services within their business and feel comfortable explaining them to others.
  • You know the names of their family members and have met them personally.
  • You have both asked each other how you can help grow your respective businesses.
  • You know at least five of their goals for the year, including personal and business goals.
  • You could call them at 9 p.m. if you needed anything.
  • You would not feel awkward asking them for help with either a personal or business challenge.
  • You enjoy the time you spend together.
  • You have regular appointments scheduled, both business and personal.
  • You enjoy seeing them achieve further success.
  • They are “top of mind” regularly.
  • You have open, honest talks about how you can help each other further.

Referral Relationships Reality Review:

  1. What conclusions do you have about the depth of your current referral relationships?
  2. Are your relationships more or less in line with these points?
  3. What points can you improve upon to deepen your relationships?

Over the years, people have asked me to promote something for them.  It happens to me almost daily on LinkedIn. Now, I don’t want to pick on LinkedIn.  It can happen on any social media platform. The majority of those who contact me have never actually met me or had a previous conversation with me. They never invested in the relationship, yet they wanted a withdrawal from it. Please stop and do not pitch to me (or anyone) on LinkedIn.

You may be shocked at the level of personal knowledge required for building deep referral relationships. I completely disagree if you believe that referrals should be all about business. Referrals are personal. It takes a lot to develop this type of relationship. When you give a referral, you give a little of your reputation away. You need to know the person that is going to affect your reputation but those who do will certainly succeed at building a business from referrals.

The PRICE System

The PRICE System For Your Referralsstring(35) "The PRICE System For Your Referrals"

The PRICE system is a commonly known management tool for tracking performance in a business context.  People who want to track, analyze, and manage their performance or the performance of others can use this system as a tool for accomplishing that. Many members of BNI have asked me about tracking the referrals they receive.  The PRICE system can be an excellent tool for you to manage and assess your referrals in BNI.  Furthermore, the system can be applied to individual members or the progress of an entire chapter, whichever you prefer.

The PRICE System is an acronym for

Pinpoint, Record, Involve, Coach, and Evaluate.

Pinpoint – involves determining the general theme(s) of the goals and objectives that you or your chapter may have.  It may be as simple as the total referrals you wish to receive.  It can, however, be more specific by breaking it down into inside or outside referrals (referrals from members or from people that members refer).  You can even decide to track referrals by the actual value of the referral.

Record – involves taking your goals and putting them in measurable and observable terms.  Measurable terms include things such as quantity, quality, or time frame.  This part of the process involves tracking your goals in writing.  It requires that you take the actual quantity or value of the goals you have established over a time period that you determine (we recommend one year) and record them as they occur.

Involve – requires clear communication and providing feedback to the other members of your chapter.  Share your PRICE goals or develop chapter PRICE goals that can be distributed and discussed with the chapter.  Discuss progress over time and make sure to review and discuss your PRICE goals regularly.

Coach – is one of the most important parts of a successful PRICE system.  Share your PRICE goals with your BNI chapter members.  Ask for their feedback.  Use your BNI chapter’s “members only group page” on Facebook to get feedback on your program. Ask the Leadership Team of your chapter for assistance, seek out a mentor from your chapter to help you (or volunteer to mentor someone else).

Evaluate – involves summarizing the data after a year to take a look at your progress.  Make sure to recognize your successes and determine future strategies to improve performance.

In business, you achieve what you measure. The Networking Scorecard™ App provides you with a mobile solution to measuring your networking efforts. The best management tool in the world is the one that is used regularly.  There is no magic to setting and tracking performance.  It is accomplished with simple but specific methods that are used consistently.  Success is the sum of small efforts that are repeated day in and day out.  Tracking your success is done the same way.

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