building a referral business | Dr. Ivan Misner®

_{A BNI Director once told me about a member who called him and said he was quitting his group because he wasn’t getting enough business. That very same day, the Director received a call from the Membership Committee of that same chapter. He asked if they could remove that member. He wasn’t following up on the referrals he was being given by other members. Don’t be this guy!}

_{When I hear stories like this I just shake my head in disbelief. Referrals don’t equal more business. Following up on referrals leads to more business. And yes, doing a good job and providing good customer service are important in order to keep getting referrals.}

_{If you get referrals and don’t follow up on them – you’re not going to get more business.}

_{When you give a referral, you give a little bit of your reputation away. If you give a referral with a strong recommendation and then the service provider doesn’t actually follow up with the contact – the service provider not only looks bad – you look bad for giving the referral!}

_{By the way, the group removed the member who wasn’t following up. I heard he now has a job at the Department of Motor Vehicles.}_{Repeat after me, “If you don’t follow up on referrals, you’re not going to get more business.” And then, you might have to take a job at the Department of Motor Vehicles.}

_{Following up on the referrals you get – – – is it me, or does that seem incredibly obvious? Please tell me – that’s incredibly obvious right?}

The best word-of-mouth programs I’ve seen happen by design, not by accident or wishful thinking. Unfortunately, many businesspeople view word of mouth somewhat like the weather: “Sure it’s important, but what can I do about it?”

Based on more than two decades of research, observation, and practical experience, I’ve found that in addition to focusing on the important issue of customer service, the average businessperson has much to do in order to build a referral business. Word of mouth can be planned and nurtured. Anyone, including business owners, entrepreneurs, sales representatives, staff employees, even individuals serving in a volunteer capacity in any field, can accomplish plenty with a well-structured and systematically executed word-of-mouth plan.

All too often I have seen businesspeople waiting for business to walk through the door. They think because they are good at what they do, people should be flocking to them. I’m afraid the truth is, it doesn’t work that way! You have to take charge, no matter what business you’re in or how good you are, and bring the business to you.

I once saw a cartoon strip of two large, ravenous-looking vultures perched on a tree limb, overlooking a dry desert plain. After quite a while, one vulture turns to the other and says, “Wait for something to die? Heck, let’s kill something!” So it is with word-of-mouth marketing. You can’t simply wait for people to come to you. If you do, one of your competitors who also provides good customer service will most likely find them before they show up at your doorstep.

If you want to succeed, you have to go get your business, or better yet, have someone else get it for you through referrals.