Give Valuable Information, Get More Referralsstring(45) "Give Valuable Information, Get More Referrals"

July 5, 2010
, , , , , , , , Building Relationships, Giving, Networking, Networking Prep, Networking Tactics, Referrals 3

Last week I posted a blog on the benefits of turning to your network for advice. It’s also very important to remember that everyone benefits when you give valuable advice to your network.

Think about how you can give your prospective referral sources valuable advice related to your specialty or profession, such as advance notice of a change in procedures that will affect them, tips on how to initiate the changes they will need to make, or other information that can help your network members achieve satisfaction or success.

One of your goals is to get network members to feel that you are a link to privileged information–that you’re an insider. The advice you give may lead your prospective sources to seek you out for answers to their questions or to feel that you’re looking out for their best interests. It’s a great way to remind your prospective referral sources of what you do.

Use these tips to help pinpoint what to share with your network and how to share it with them:

  • List the topics that you feel comfortable giving advice on, then list network members who might need advice on each topic.
  • Decide whether you will apply this tactic formally, such as by newsletter, or informally, such as in a personal note.
  • Decide how frequently you will send updates.
  • Ask your sources to name others who might benefit from your advice.
  • Periodically ask your network members whether they find your advice useful.
  • Tell your network members to let you know if they don’t wish to receive your updates.

Offering valuable information to your network will not only help them, more important for you, it will keep you on their minds and encourage them to refer you and speak highly of your professional knowledge.

Get Your Act Togetherstring(21) "Get Your Act Together"

June 28, 2010
, , , , , , , , , , , , , , , , , , Networking, Networking Prep 10

Let’s face it: As a businessperson, you’ve got a lot going on. There are people to see, places to go and a whole lot of stuff to do. Can you do all this, and look and act presentable at all times, too?

Quite frankly, getting and keeping your act together can be a little overwhelming for even the sanest of people, so here are some tips:

1. Look the part before going to a networking event.  You’d be surprised how many people fall short in the fundamental area of appearance. If it’s a chamber of commerce networking breakfast, don’t dress casually–wear a good suit or outfit. You need to be well-rested and clearheaded when attending a morning networking session; make a conscious effort to get plenty of sleep the night before. If you’re not a morning person, hit the sack earlier than usual, so you don’t look like the walking dead. Regardless of how many cups of coffee you’ve had, people can tell if you’re not all there.

2. Make sure your body language sends the right message. When it comes to forming networking relationships, most of the important information–trustworthiness, friendliness, sincerity, openness–is communicated through nonverbal cues such as posture, facial expression and hand gestures. When engaging in conversation, look the other person directly in the eye and stay focused on what he’s saying. Lean a bit into the conversation rather than away from it; don’t stand rigid, with your arms crossed.

3. Be prepared. Make sure you know which pocket your business cards are in, and have plenty on hand. Nothing screams, “One of these days I’ve got to get organized!” louder than handing a potential referral partner someone else’s card.

4. Remember to smile. Studies have shown that if you smile when you talk, you seem more open and forthright. Obviously you don’t want to go overboard with this, and start grinning and shaking hands like a hyperactive clown; just show that you’re having a good time, and that will send the right message.

Perception is reality when it comes to meeting people for the first time. If people perceive you as not being right for them, they simply won’t be inclined to refer business to you, regardless of the work you can actually do. However, by keeping the above tips in mind, you’ll go a long way toward creating the right impression in the blink of an eye.

Become a Customer to Become a High Prioritystring(43) "Become a Customer to Become a High Priority"

June 17, 2010
, , , , , , , , , , , , Building Relationships, Business, Connections, Marketing/Sales, Networking, Networking Prep, Networking Tactics 2

One of the friendliest and most natural ways to make contact with a referral source is to buy her products or services, whether in large or small dollar amounts.  It’s important to note that the purchase doesn’t necessarily have to be from her primary line of business–perhaps a ticket to a fundraiser, a used car, a computer, even a box of Girl Scout cookies from her daughter.

By purchasing something from your network member/referral source, you become one of her customers. As a customer, you are high on her priority list; she will be more inclined to do business with you and give you information, support and referrals.  This approach also increases your source’s interest in getting to know you and staying in touch.

Tips for purchasing from your network:

  • Analyze how you are spending your money now.
  • Decide how much you want to spend.
  • Test your relationship with the people you buy from now. Do they know you? Do you benefit from doing business with them?
  • Identify the products and services your sources offer that you want or need–or the purchase of which might benefit your business in the long run.
  • Are you buying products and services from people and organizations that see you as an individual? Do the people you buy from know your name and think of you as their customer? There’s a big difference between being a customer of Sears and being a customer of Joe’s Shoe Store.
  • Use your purchasing power in a way that gives you more benefits and builds relationships.  Buy at least half of your products and services from people you know; however, don’t do it in a way that makes them feel obligated to buy things from you.

It’s Not WHAT You Know, But WHO You Know–True or False?string(67) "It’s Not WHAT You Know, But WHO You Know–True or False?"

June 1, 2010
, , , , , , , , , , , , Connections, Emotional Intelligence, Introducing Yourself, Networking, Networking Prep, Referrals, Self Development, Social Capital, Success 5

How many times have you heard the phrase “It’s not what you know, but who you know” when it comes to determining success??  I’m willing to bet that over the course of your life to this point, you’ve heard it a lot.  Do you think it’s true?  Well, it’s not–it’s false.  It’s not what you know, or who you know–it’s how well you know them that really counts.

Here’s the difference.  How many people do you know?  Open up your e-mail address book and count the names.  You know as many people as are listed n your e-mail address book and probably a lot more.  Now, reach into your pocket and pull out your car keys.  How many of the people you know would you hand your car keys to?

Surely, now you understand that the importance of how well you know a person.  A contact is a person you know but with whom you have not yet established a strong relationship.  A connection, on the other hand, is someone who know you and trusts you because you’ve taken the time to establish credibility with that person.

Your network must not only be broad but also deep.  When you rely on others to cross-market your business or promote your program to a client, you’re not asking a simple favor.  For true referral networking, you need relationships that are deeper than mere contacts; you need strong connections, established well in advance.

So, beginning this week, focus on taking the time and energy to cultivate deep relationships by giving your referral sources anything and everything you can to help them succeed.  These will be the relationships you can count on when you need powerful connections because it really isn’t what you know or who you know–it’s how well you know them, how well they know you, and how well they know the people you want to meet.

Why Word of Mouth?string(18) "Why Word of Mouth?"

May 27, 2010
, , , , , , , , , , , , Business, Marketing/Sales, Networking, Networking Prep, Referrals, Word of Mouth 4

One of the most important things I’ve learned over the years is that the secret to success–without a little bit of hard work–is still a secret!  Word of mouth marketing is a solid foundation for building any successful enterprise and, like anything else that brings great rewards, it takes time, effort, and dedication (a.k.a.–a “little bit of hard work” ;-)).

Developing a word-of-mouth marketing program is an effective, potentially lucrative way of generating more business.  The reason I said it takes “a little bit” of hard work is because it’s not even hard work when you consider the alternatives:

1.  Increase your advertising budget

2.  Develop an effective public-relations campaign

3.  Pick up the phone and start cold-calling

The first two alternatives can be ridiculously expensive and the third is time-consuming and frustrating.  However, a structured word-of-mouth marketing program is also personally empowering: it’s one of the few things that you, or someone who works for you, can do (other than cold-calling) that directly affects your success.  Why wait for people to walk in your door?  Why sit idly by, hoping that your existing clients or customers will refer you to others?  With a structured word-of-mouth program you don’t have to wait for the results of your last PR campaign to kick in.

A word-of-mouth program will give you control and allow you to take ownership for the business development of your company.  Such a program has worked for thousands of people in all types of businesses and will work for you as well.

Whoopee in the Cornfieldsstring(25) "Whoopee in the Cornfields"

May 24, 2010
, , , , , , , , , , , BNI, Emotional Intelligence, Networking, Networking Prep, Referrals, Self Development, Social Capital 3

Here’s the thing with networking: If you want to get more business, you have to  be willing to give business to other businesspeople. That’s why I founded my networking organization, BNI, on the central, guiding philosophy of giving benefit to others–Givers Gain®. It’s an ethical theme that is common to all religions, all cultures: Treat others the way you want to be treated. If you want to get referrals, do the best job you can of giving referrals to others.

I’d like to share with you a story that I originally heard from one of my BNI directors, Art Radtke, which will help you remember this concept.  It was originally called “Sex in the Cornfields,” but I figured “Whoopee in the Cornfields” would be a more decorous title. 😉

Whoopee in the Cornfields

A farmer in Nebraska won the state fair four times in a row with his corn. Nobody had ever done that before, so the paper sent someone out to interview him.

The reporter asked, “What is your secret? Do you use special corn seed?”

The farmer said, “Absolutely. I develop my own corn seed, and that’s an important aspect of it.”

“Well, then, that’s your secret,” said the reporter. “You plant a type of corn that’s different from your neighbors.”

“No, I also give it to my neighbors,” said the farmer.

“You give it to your neighbors?” asked the incredulous reporter. “Why in the world would you give your award-winning corn to your neighbors?”

“The farmer said, “Well, you’ve got to understand how corn is pollinated. It’s pollinated from neighboring fields. And if you’ve got fields around you that don’t have this top-quality corn, your field is not going to grow top-quality corn either. But if my neighbor’s field has this really strong corn, I have awesome corn. And that’s how I’ve won at the Nebraska State Fair the last four years in a row.”

This story is a great metaphor for how networking works.  Put simply, if you’re going to be an effective networker, you need to go into networking with a commitment to helping other people because that is how you’ll be helped in return.

Time Equals Money in Networkingstring(31) "Time Equals Money in Networking"

May 6, 2010
, , , , , , , Business, Networking, Referral Institute, Referrals, Survey 6

The secret to getting more business through networking is . . . spend more time doing it! OK, well, it’s a little more complicated than that because you have to spend time doing the right things.  However, based on the recently completed Referral Institute study on business networking, we finally have a definitive answer about how the amount of time spent networking impacts the amount of business that is generated.

The most dramatic statistic I have found shows that people who said “networking played a role” in their success spent an average of 6.5 hours a week participating in networking activities. On the other hand, the majority of people who claimed that “networking did NOT play a role” in their success spent only 2 hours or less per week developing their network.

What does this mean? It means there is a direct correlation between the amount of time you devote to the networking process and the degree of success that you realize from it. To illustrate this further, there is a graph below which demonstrates the “average” percentage of business generated from someone’s networking efforts in comparison with the amount of time spent on networking activities.  Here you can clearly see that people who are spending between five to nine hours a week networking are generating (on average) 50 percent of their total business from this activity. 

People who spend, on average, more than 20 hours a week networking are getting almost 70 percent of their business through referrals.

Based on this study, it is clear that people who devote six hours a week or more to networking are generating a large percentage of their business through their efforts. So, it’s time to ask yourself . . . how much time are you spending developing your personal network and what kind of results are you starting to see?

Guardian at the Gatestring(20) "Guardian at the Gate"

April 22, 2010
, , , , , , , , Connections, Marketing/Sales, Networking, Networking Prep, Referrals, Word of Mouth 2

When I started my first business, I knew I wanted referrals to play a key part in my overall growth strategy, and I began to realize I wasn’t the only one trying to get more sales through referrals.  A lot of other business professionals were trying to do the same thing.

So I thought, “What if I became the hub?”  If all the other people out there were trying to do the same thing as I was, why couldn’t I position myself as the gatekeeper of sorts between other people’s networks? Then, if someone was buying a new home and needed a real estate agent but didn’t have one in her own network, she would come to me and see whom I knew.

How did that help my business?

1.  It encouraged me to continue building and deepening my relationships with others, even if I didn’t think they could help me right away. Our natural tendency is to nurture relationships with those we feel can help us the most. But the fact is, we never know whom another person knows, so we should take every opportunity to build relationships with all those we make contact with.  Bob Smith might not be a good referral partner for me, but he could be ideal for Jane Doe, another person I know.

2.  Becoming a gatekeeper had a positive effect on my credibility. I wanted to be the go-to guy in the business community–the person others came to if they needed a referral for anything.  This meant that I would be deepening relationships with people I might not otherwise have gotten to know.  Since people do business with the people they like and trust, whom do you think got their referrals when they needed someone with my products and services? . . . Bingo! 🙂

When you’re networking, make an effort to build relationships with people who may be good referral partners for others in your network, and try to connect them with each other.  I guarantee if you do this consistently, you’ll get more referrals in the long run.

Referrals Are Not Equalstring(23) "Referrals Are Not Equal"

March 22, 2010
, Networking, Referrals 1

Last week I wrote a blog explaining that all referrals are not equal and that there are different levels of referrals.

The more time and effort your source puts into qualifying, educating and encouraging the prospect before you become involved, the higher the quality and level of that referral.  In level 4 through level 6 referrals, the quality of the referral is higher than level 1 through level 3 referrals.  Here’s why . . .

Level 4: General testimonial or letter of recommendation. Getting a referral source to say or write nice things about you is a major accomplishment.  His willingness to communicate positively about you and your business shows that you’ve built a moderate level of trust with him.  Of course, testimonials and letters of recommendation are fairly common in the business world, so their impact on the average person is limited.

Level 5: Letter of introduction and promotion. This is the first level of referral that truly involves a modicum of effort on the part of your referral source.  Unlike the letter of recommendation, which requires little more than a written endorsement, the note or letter of introduction implies a more substantive relationship between you and the referral source, and it usually includes background information and a description of your product or service as filtered through the lens of the author.  It also implies that the prospect will be hearing from you.

Adding the element of promotion increases the effectiveness of your referral source’s effort on your behalf.  Promotion is advocacy–an outright recommendation of your product or service with a description of its features and benefits.

Level 6: Introductory call and promotion. Another level up in terms of effort is the referral source who makes a personal phone call on your behalf.  It takes preparation and effort, but a telephone call from your source is more effective than a letter for paving your way to communicate with the prospect.  Including a promotion makes it even more favorable.

If you’re given a level 1 referral, you still have to do 95 percent of the work to close (which is not much better than a cold call) so the referral levels listed above are definitely more desirable than the referral levels I wrote about last week.  However, what you really want to get is a level 9 or 10 referral because with those, the person giving you the referral has already done most of the work for you.

Come back next week to find out the difference between referral levels 7, 8, 9 and 10–as I promised last week, this is where it gets good!

A Referral Is a Referral, Right? Wrongstring(38) "A Referral Is a Referral, Right? Wrong"

March 18, 2010
, Ivan Misner, Referrals 1

A referral is better than a cold call because you have the name of the prospect and, if you’re fortunate, you can use the name of the referral source to open the door. What more could you hope for? Actually, there’s quite a bit more you can expect from referrals that have been properly developed by their sources.

You see, all referrals are not equal.  Referrals come in many different grades and they vary in quality according to how much involvement your referral source has invested in preparing the referral for you.

Here are the first three levels of referrals:

1.  Name and contact information only. This isn’t much better than having just a name to call.  It only indicates that your referral source has done just enough work to provide you with a phone number, address or some other way of contacting the prospect.

2.  Literature, biography and company information. When a referral source offers to give a contact your marketing literature or other information about your business, all you can be certain of is that the prospect will see the materials.  The prospect’s interest in your product or service will depend solely on the impact of your marketing message.

3.  Authorization to use name. Once a referral source has authorized you to use her name, you can feel fairly certain that you’ve established a good level of credibility with her.  By allowing you to say that she endorses your product or service, your source has given you valuable leverage with the prospect; however, the problem with this level of referral is that the burden of developing the prospect still rests on you.  Once you’ve conveyed that your referral source recommends you and your business, the task of selling really begins.

Think about the referrals you’ve gotten over the past couple of months.  Now, think about which referrals fall into each of the three categories above.  I’d love to hear your comments about the different results you’ve gotten from level 1, level 2 and level 3 referrals, so I encourage you to post your experiences below.

I’ll tell you more about level 4 through level 6 referrals next week; and in two weeks, I’ll get to the really good stuff . . . level 7 through level 10 referrals!

Simple Recognition Is Sometimes the Best Rewardstring(47) "Simple Recognition Is Sometimes the Best Reward"

October 29, 2009
, , , , , , , , Networking, Networking Prep, Referrals 4

Rather than receiving a finder’s fee, for most referral sources  it is more important to be recognized as a person who can direct others to the goods and services provided by skilled, highly competent, trustworthy people.

Over the years I’ve witnessed time and again that most people will do more for simple recognition than for money. However, for those who expect a finder’s fee, this is a good thing to know in advance if you want to keep the relationship healthy, active and profitable.

You will find that different motivators will inspire different members of your referral team, and this is a matter in which understanding the various behavioral styles of people can be helpful.

People who are embarrassed by being in the spotlight, even for accolades and applause, might prefer their rewards low-key and private–perhaps a simple thank you or an evening cruise on your boat if you are a boat owner.  Those who like public recognition might prefer seeing their name showcased on your bulletin board.  Still others may be more highly motivated by an inexpensive but thoughtful gift than by a more substantial cash reward–a bottle of wine from a winery near their hometown or a coffee table book about their favorite travel destination.

The point is, simple recognition really resonates with most people and, more often than not, simply recognizing people in the way they prefer to be recognized is a far better reward and incentive for them to refer you to others than offering them a cash finder’s fee.

If you’re in the habit of recognizing people as a way of thanking them for referrals, please leave a comment about what’s worked for you and even what hasn’t.  Then check back next week to read my story about a way in which someone recognized me that kept me motivated to refer that person over and over again!

The Nature of a Referral Relationshipstring(37) "The Nature of a Referral Relationship"

October 19, 2009
, , Marketing/Sales, Networking, Networking Prep, Referrals, Word of Mouth 5

Over the years, I’ve run into countless people who believe that joining groups and organizations and becoming active by volunteering, taking on responsibilities and working side-by-side with other people on a common goal will cause people to get to know them and refer business to them.  However, this is not how things work.

Granted, it’s easy to think that if you rub elbows with someone long enough he or she will spontaneously start sending you business opportunities. But that’s really nothing more than an entitlement mentality.

Getting referrals usually takes three things: visibility, credibility and profitability.  Ordinary participation in an organization, even a strong-contact referral group, will get you visibility and perhaps some credibility; it won’t automatically get you profitability.  That takes a much more focused approach, along with some explicit talk about the kinds of referrals you want.

By nature, referral relationships are rewarding and valuable when they are created purposefully and by design. If you are assuming that the idea of giving you referrals is going to pop into someone’s head spontaneously if you hang around long enough, you are definitely misunderstanding what a referral relationship is supposed to be.

Woody Allen once said that “90 percent of success is just showing up,” but he wasn’t talking about referral marketing.  “Just showing up” will get you a seat at the table, but you have to pass the food to others and snag your own steak whenever it comes around.  It’s not “netsit” or “neteat“–it’s network!”  If you want to build your business through referrals, you have to learn how to deliberately work the networks to which you belong.

You see, participating in a group is one thing; performing is another.  To get referrals, you have to perform.  If you don’t perform–talk specifics about your business, your specialties and your ideal referral, and refer business to others in your group–how are they going to know what you do and what you need?  You have to take specific actions to let people know how they can refer business to you.  Being a good citizen is the right thing to do, but it’s not enough to get you the referrals you need to run your business by word-of-mouth marketing–you need to actively feed and water your referral relationships, so to speak, in order to significantly grow your business through referrals.

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