Leads Referrals

Leads are not Referralsstring(23) "Leads are not Referrals"

July 23, 2020
, , Referrals 1

So, what is the difference between referrals and leads? When I attended networking groups many years ago, they encouraged us to pass leads among us. However, in BNI, we believe in the power of referrals. These two words may sound alike as they both seek out new clients for the person you are referring to. However, there is more than semantics in the difference between leads and referrals. It is important to understand those differences so that we give and receive only qualified referrals, rather than leads.

Leads

A lead is a contact that may come from any number of sources. This contact is generally not expecting your call. If a Realtor gives an insurance agent their new home buyers’ contact list, they would be considered leads. Unfortunately, the prospects are not expecting a call from the insurance agent. Therefore, it is not much better than a cold-call. The agent will most likely receive a cold response from the phonecall.

Referrals

A referral is the opportunity to do business with someone who is in the market to buy your product or service and who has been told about you by a mutual friend or associate. In other words, they know who you are and what you do when you contact them. It is stronger than just a “lead”. The prospect has talked to your mutual acquaintance and is generally expecting the call. Hence, they are “referred”.

A common misconception about the difference between leads and referrals is that a referral is guaranteed business. This is not the case – as always, your business is your responsibility. Once a referral source has given you a contact name, it is up to you to do the rest. A qualified referral is an open door to put your best foot forward. A referral is better than a lead. You can use the name of the referral source to open the door.

Qualified Referrals

Are you passing qualified referrals to your networking partners based upon these three criteria?

  • When someone expresses that they may be interested in a product or service, have a conversation with them to determine if their needs fit the services offered by the person or organization you have in mind.
  • If the needs do fit, share with the potential referral that you know someone who may be a fit to help them and explain how you know your referral partner.
  • If the potential referral appears receptive to this connection, ask if you can share their contact information with the person who can provide the product or service.

Qualified referrals have been previously vetted by the person giving the referral. There is reason to believe the product or service is desired by the potential customer. The effectiveness of your referral network in providing you with quality referrals depends on the amount of work you do to develop the sources in your network.  A referral is almost always better than a lead. But don’t forget that there are many levels of a referral which depends on the development of the relationships that you nurture.

Different Levels of Referrals

The levels of referrals vary in quality according to how much involvement your referral source has invested in preparing the referral for you. The more time and effort your referral source puts into qualifying, educating, and encouraging the prospect before you become involved, the higher the quality the referral should be. Conversely, if your referral source only passes a prospect’s name to you, most of the work of developing that prospect into a customer falls on you, and the likelihood of turning that prospect into a customer diminishes significantly.

The best referrals you can give are the referrals where the person is expecting their call. Let them know that this person that you are referring to them is going to be giving them a call. Then when the potential client does call the business you are referring to, they will get a warm reception. That sure beats the heck out of cold calling any day of the week.

How to Uncover Referral Opportunities by Reading the Newspaperstring(62) "How to Uncover Referral Opportunities by Reading the Newspaper"

January 19, 2015
, , Building Relationships, Business, Networking, Networking Prep, Networking Tactics, Referrals, Strategy 5

Most people read the newspaper to gain insight into local and world events and news–and that’s all.  I’m suggesting that you try reading the paper a little differently–to look for opportunities for referrals.

Photo courtesy of njaj at FreeDigitalPhotos.net

Photo courtesy of njaj at FreeDigitalPhotos.net

Pick up your local newspaper and scan the front page. Turn to the local section, then the business news, and then the lifestyle section. The paper is teeming with opportunities for you to act as a gatekeeper for the people in your network. Every page presents problems or significant issues of one kind or another.

What are people saying? Who is talking about problems or changes in her company or industry?  What is happening that could have a direct impact on you or someone in your network?  Who is in need of the services of someone you know?  Where are there networking opportunities for you and your marketing team?

So why not start out by reading the paper this week with referral intent for two people in your network?  Find each of them an opportunity or a lead that they might capitalize on through their network.  Then find your own business a lead or two on which you can capitalize, and begin to ask your network for help in making the connection for you.

Clearly, these are more “leads” than actual “referrals.” However, there’s nothing wrong with telling a business associate about the details you just read about relating to a new company moving into town.  It’s good to show your referral partners you are looking out for them and–you never know–it could turn into something good.

Try this strategy out and then please come back and leave a comment to let me know how it worked out–I’m very interested to see what happens!

Want to Achieve Networking Success with the Opposite Sex?–Advice for Women & Menstring(91) "Want to Achieve Networking Success with the Opposite Sex?–Advice for Women & Men"

July 2, 2012
, , , , , , , , , , , , , , , , , , , Book, Building Relationships, Business, Business Networking and Sex, Gender, Marketing/Sales, Networking, Networking Prep, Networking Tactics, Relationships, Success, Survey 2

Last week I posted a summary of the conclusions my Business Networking and Sex co-authors and I came to after surveying over 12,000 people and conducting months of research.  I promised that this week I would post advice for both women and men in achieving networking success with the opposite sex so below I’ve outlined some key tips Frank De Raffele, Hazel Walker, and I put together.

We Say . . .

We’re all trying to get to the same place.  It will be much more profitable for all of us if we can help each other along the way.  Here are a few things to guide your success in networking with the complementary gender:

For the Ladies

  • Don’t get stuck in the credibility phase of the VCP Process®.  Ask for what you want.
  • When asking for help, communicate clearly exactly what it is that you want.
  • Make time for networking.
  • When speaking to men, try to impress them and share your accomplishments.
  • When spoken to inappropriately, speak up about it immediately.
  • Dress for business at business events.
  • Put systems in place to track your business.
  • Stay in contact with and follow up on leads, referrals, and acquaintances made.
  • Diversify your networks.
  • Remember that networking is ultimately about getting business, so ask for both business and referrals.
  • Convey an image to others that you are a serious businessperson, in all that you do.
  • Get educated about referral systems.
  • Don’t lump all men into the same group.

For the Guys

  • Slow down and build the relationship.
  • Work through the VCP Process® in the proper order of its phases.  Don’t race through the credibility phase.
  • Make and maintain eye contact.
  • Listen and ask relational questions.
  • Don’t assume that women don’t take their business seriously.
  • Don’t hit on women at networking events.
  • Edit what you are about to say, using filters to sift out what is not business appropriate.
  • Stay in contact with and follow up on leads, referrals, and acquaintances made.
  • Stay informed about the best, most current, and cutting-edge networking practices.
  • Develop and use systems for your networking activities.
  • Make time for networking.
  • Speak to relate, not just to impress.
  • Remember that women are at networking events for business gain, just as you are.

The difference between the genders when it comes to networking is a great advantage, not a disadvantage.  By following the tips we have outlined above, you should be able to develop more productive relationships with members of both sexes.  Also, be sure to visit www.BusinessNetworkingAndSex.com if you would like to follow the latest developments on the subject of business networking and the genders.