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.