A Surprising Referral Sourcestring(28) "A Surprising Referral Source"

When it comes to effective business networking, we sometimes have to go beyond the obvious and look for new and different connections. Which leads to this question:
Can a director of a nonprofit organization be one of your best referral sources?
The answer is YES, they certainly can.

In a typical nonprofit, the board of directors is made up of many of the most influential people in the community. The people that you meet in and around a nonprofit organization also tend to have a service mindset.


The executive director of a large nonprofit typically has a huge network with many movers and shakers among their contacts in the business and philanthropic world. Remember – nonprofits need referrals, too. They depend on donations, and their donors, which are often large corporations, usually have a significant amount of business to give out. Among other services, nonprofit groups are some of the biggest purchasers of training, coaching, and consulting in the world, because they recruit a lot of nonprofessional volunteers to do their work.

Build Relationships Before Asking for Referrals

Remember, networking is about farming, not about hunting; you want to cultivate business relationships with the board of directors and members of the organization. You must build a solid foundation by giving and helping, by showing that you genuinely care about the cause and the community that the nonprofit serves.

This will assure that you avoid “premature solicitation” – asking for a sale or referral from someone who doesn’t even know who you are, or someone with whom there is no relationship. Investing your time to build solid relationships is essential for networking success in any organization.

As you build those relationships, you can also invite key members of the nonprofit organization to visit your business networking group, whether the meetings are in-person or online. Nonprofits can be very effective and very successful in established networking groups such as BNI®.

Yes, a director of a nonprofit organization can be a good and surprising referral source for a business. Getting involved with, and even serving on a nonprofit’s board of directors not only lets you contribute to your community and make deposits into your social capital account, it can also bring you opportunities to form high-value friendships and business relationships that can result in high-value referrals for you and your company.

7 Ways to Connect with Networking Partnersstring(42) "7 Ways to Connect with Networking Partners"

1.  Arrange a one-to-one meeting. Meeting a referral source in person is an excellent opportunity to learn more about his business and interests. Prepare some questions in advance so that the conversation flows smoothly. Be ready to give an update on your business and to ask lots of questions about your source’s interests.

2.  Extend an invitation. Invite a referral source to a networking event. Introducing her to other businesspeople you know gives your source an opportunity to meet others in your target market and may also provide new business opportunities.

3.  Set up an activity. A recreational activity, such as a golf outing, fishing trip, concert or play, is a great opportunity to let your referral source see a different side of you in an informal setting. The activity should be one that will give everybody time to relax, but it may also include an element of information such as a speech or educational presentation. To maximize the effectiveness of your time with your sources, you should invite no more than four people and spend at least one hour with each.

4.  Arrange a group activity for clients. Gathering your clients together creates an excellent environment for synergy and for raising your credibility with all. The one thing the people in this group will definitely have in common is you, so you’ll certainly be the focus of a good many conversations. Group activities may be social, such as a barbecue or a ball game, or they may be educational, such as a seminar or demonstration.

5.  Nominate a referral source. Watch for opportunities to nominate a referral source for an award. Local service and civic organizations often present annual awards recognizing contributions to a particular cause, and local periodicals often sponsor awards contests for businesspeople. Find out what groups and interests your referral source is involved in, and check to see if there is any form of recognition associated with them.

6.  Include a source in your newsletter. Even a brief mention of a referral source in your newsletter can pay dividends down the road, including the opportunity for your source to reciprocate with his newsletter.

7.  Arrange a speaking engagement. Help your referral source get in front of a group that would be interested in her business or area of expertise. Local chapters of service organizations, such as Rotary and Kiwanis, are always looking for good speakers. If you belong to a group that invites people to speak, use your contacts to help your source make the rounds among various chapters.

What are some other ways that you recommend to stay in contact with your networking partners?

6 Simple Actionsstring(16) "6 Simple Actions"

Last week I gave you a list of actions you can take to strengthen your relationships with your referral sources. I promised that in the next few weeks I would give you some more information on each action. So, since we all love it when things are easy, I’ll start by giving you further details on the six simplest actions you can take.

1.  Send a thank-you card.  Always a nice gesture, a handwritten thank-you card makes a great impression, especially in this age of electronic communication. Be sure to write a personalized note that mentions what you’re thanking your referral source for. SendOutCards.com is a great resource for this.

2.  Send a gift. A gift is always welcome. Like a thank-you card, a gift, however small or inexpensive, builds visibility and credibility with your referral source. Try to find out what your referral source likes (favorite foods, hobbies, etc.), and send a gift that is personalized to her tastes.

3.  Call a referral source. An occasional phone call is a good way to keep the relationship strong, if you take care to call only when it’s least likely to be an unwelcome interruption. It’s also a good idea to have a piece of news or some tidbit of information to pass along that will benefit or interest your source.

4.  Offer a referral. Giving your referral source a referral is a wonderful way to build your relationship. By helping build your source’s business, you create a debt of gratitude that will encourage your source to respond in kind.

5.  Display a source’s brochure. Doing a bit of sales work on behalf of a referral source can only enhance your relationship. If you have a public area for your business, offer to place your source’s materials where your clients can read them.

6.  Send an article of interest. Set up a file for holding newspaper and magazine clippings that may be of interest to people you would like to be your referral sources. Sending an article, especially one that is pertinent to your source’s current business or personal circumstances, says that you are thinking about your source’s needs.

These are some of the easiest ways to grow your networking relationships. Check back next Monday to read about some great actions you can take that will require a little more effort on your part.

6 Ways Your Referral Source Can Turn a Referral Into a Customerstring(63) "6 Ways Your Referral Source Can Turn a Referral Into a Customer"

Let’s say that upon getting a business referral, you simply take down the name and contact information of the potential customer from the referral source. Sometime later, you call the prospect and introduce yourself: “Hello, Ms. Prospect, my name is John Businessman. Larry Source recommended I call you.  I’m an accountant . . .”

Handling referrals this way, as you might expect, gets minimal results.  Your chance of converting the referral into a customer will be greater if your referral source:

  • makes the initial contact with the prospect (his acquaintance) to assess her need and, if appropriate, alerts her that you will be getting in touch
  • sends the prospect background information about you and your business
  • lets the prospect know the nature of his relationship with you
  • gives the prospect a brief description and endorsement of your products or services
  • arranges to introduce the prospect to you
  • follows up with the prospect after you contact her.

Unfortunately, if you don’t ask your prospective referral source to do some of these things, he probably won’t–not because he isn’t willing, but because he doesn’t know how these actions could make a big difference, doesn’t have enough information about you or your business, or simply doesn’t know how.

Make it your goal to communicate to your sources the actions you wish them to take and then provide them with all the materials necessary to accomplish those actions. If you do this, I guarantee you’ll get better-quality referrals that will more quickly turn into actual business.