Getting a New Referral Is a Done Deal . . . True or False?string(58) "Getting a New Referral Is a Done Deal . . . True or False?"

When one of your business contacts passes you a new referral, does that mean the prospect is ready to hear a presentation on your product or service?  Repeat after me . . . NO.  Assume nothing.

When an associate passes you a referral, say thanks, then start digging for more information.  Exactly what does the prospect do?  What products or services does he want from you?  Will your offerings truly fulfill his needs?  What is his behavioral style?  What are his business goals?  How large is his company?

Don’t skip steps in your sales process.  Before you approach the prospect, you need to decide on a strategy based on whatever you can find out about him–the same as you would when preparing for any sale.  Just because the prospect was referred to you doesn’t mean the sale is a done deal.  All you’ve really received is an opportunity to approach the prospect with a favorable introduction.  Whether the prospect becomes a client or not depends on how well you convince him that what you offer, at the price and under the conditions that you offer it, will fulfill his needs.

There’s quite a difference between a basic referral and one that’s well developed, and there are many different levels in between.  Listed here from least to most valuable, you should consider which level this referral represents:

  • Name and contact information only–Unfortunately, this is what many of your potential sources probably think the first time you say the word referral to them.  It does represent a certain level of trust in you, but the networking value of this kind of referral is low.  It’s better than nothing–but not much.
  • Authorization to use name–If he says, “Tell ’em Joe sent you,” you can be fairly sure you’ve established a good level of credibility with him.  This gives you some leverage, but the work of developing the prospect still falls on you.
  • Testimonial or letter of introduction–If your source trusts you enough to say nice things about you, try getting him to go a bit further and write you a letter of introduction or recommendation, including background information on you and some words about your product or service.
  • Introduction call–A personal phone call on your behalf, preparing the prospect to hear from you, takes significant time and effort in preparation.
  • Letter of introduction and phone call promotion–A letter that’s followed up by a phone call advocating your business represents a high level of commitment by your referral source and has a great deal of influence on the prospect.
  • Meeting–By arranging and working out the details for a meeting between you and the prospect, your source moves beyond the role of promoter to that of facilitator, or even business agent.  This demonstrates to your prospect a deep level of trust in you.
  • Face-to-face introduction and promotion–Combining an in-person introduction with promotion demonstrates that your source is engaged in selling your product or service rather than just facilitating your sales effort.
  • Closed deal–Your referral source describes the features and benefits of your product or service, then closes the sale before you even contact the prospect.  All you have to do is deliver the goods and collect the money.  This is obviously the best kind of referral you can get.  To get to this level of referral, you’ll have to work with your sources and tell them what you’d like from them.  This takes time and education.

The better your source knows you and is confident of your character and your business, the more often you’ll get the higher-level referrals.  But keep in mind that you need to be making high-level referrals for your sources too.  It really is true . . . what goes around comes around.

What can you do this week in an effort to generate more high level referrals for your referral sources? For those of you who share your ideas in the comment forum below, I’ll send a free copy of my book Masters of Sales to everyone who posts their thoughts by the end of the week (Sunday, 5/5/13).  Once you leave your comment, send your name and your mailing address to erin@bni.com in order to receive your book (Erin is my Communications Supervisor and she will only use your contact information in order to ensure you receive your book–your information will not be shared).  Thanks!

5 Pointers on Giving Referralsstring(30) "5 Pointers on Giving Referrals"

Since business referrals are the principal tools and the valued currency of networking, you should make sure that yours are both timely and appropriate.  Here are five important points to consider in giving a good referral:

 

1. Listen for needs from the people you meet.  When you meet someone who expresses a need, tell her you know a person whose business can provide the product or service she’s looking for.  Tell her about your business experience, if any, with that person.  Give her the business card of the person you’re referring, and ask for hers.

2. Ask whether it is okay for the person or business you are referring to call.  This helps determine how hot the referral is.  If she says yes, fill out a referral slip (or use the back of your card) and give it to the person you referred.

3. When giving a referral to someone, be careful not to misrepresent the quality of the referral.  Your honesty about the prospect will be appreciated, even if the referral is tepid.

4. Whenever you have a hot referral for someone, don’t hang onto it.  Call the person you’ve referred right away; hot referrals have a way of cooling off quickly.  Provide as much information as possible about the prospect, including the prospect’s name, address, phone number, occupation, and any relevant information about the product or service the prospect is looking for.

5. Avoid giving bad referrals, such as:

  • News about a meeting for business owners, a chamber mixer, or any other business meeting.  This is an announcement, and potentially good information to have, but not a referral.
  • Providing someone with a better source for obtaining products.  Again, this is good information for someone, but not a business referral.
  • Giving the same referral to three different people in the same profession.
  • Referring someone to a prospect without telling the prospect that you have done so.
  • Giving someone a referral but telling him or her not to use your name with the prospect.

These tips will certainly help you get and stay on the right track in regard to giving referrals and if you have additional referral-giving tips to share, I’d love to hear them.  Please post your tips in the comment forum below. Thanks!

Training Referral Sources to Generate Referrals for Youstring(55) "Training Referral Sources to Generate Referrals for You"

If you interact with your clients, customers, referral sources, and contacts with a referral mind-set, show them that you are a giver, help others, and continually and strategically give referrals, you’re modeling the behavior you want others to exhibit toward you.  By itself, however, that’s not enough to train them to give you referrals.

Contacts who are not involved in your strong-contact network may not be aware of what is involved  in the kind of true referral networking that you are conducting.  Often you will have to coach them as you go, letting them know exactly what you are doing, why you are doing it, and what they may expect from your efforts.

Let’s say you’ve heard about a colleague whose stolen credit cards have been used to run up some big charges: “Stephanie, I’ve been talking with a colleague about your identity-theft problem and have arranged for him to send you a number of internet links that will help you quickly straighten out your credit problems.  I also know a lawyer who specializes in this field.  Would you like for me to contact him for you?  I hope you’ll keep me updated on your progress, and let me know if there’s any other way I can help.”

Similarly, if you’re passing a referral to an untrained but potentially valuable referral partner, let him know exactly what you’re doing and suggest ways he can reciprocate: “Jim, I know a specialist who provides the exact services you say you need.  I’ve known him for fifteen years and have used him many times.  He’s good, and he’s trustworthy.  May I ask him to call you?  And by the way, if you know a general contractor who constructs steel-frame buildings in the Valley and can use the new kind of fasteners I sell, would you please consider giving me a referral?”

By talking openly about what you’re doing, you’re not only modeling the behavior you want from your potential referral partner, you’re getting him to think about it, which is an essential part of learning.  You’re also asking him to practice it in a way that will help him repeat the behavior later.  It’s not a guarantee that he will reciprocate, but it makes it more likely that he will get the idea and respond in kind–at first, out of simple gratitude; later, out of the realization that a continuing referral relationship is good business for both of you.

One of the best ways to train a referral source is to go to a professional referral-training seminar and take your source with you.  This way, you will both be trained by an expert and will be speaking the same language–the language of referrals.

If you have an additional tactic for training referral sources to generate referrals for you, I’d love to hear it.  Please share it in the comment forum below. Thanks!

Coin-operated Networking vs. Givers Gain ®string(43) "Coin-operated Networking vs. Givers Gain ®"

Are you using coin-operated networking? In this short video, I discuss coin-operated networking vs. Givers Gain networking and I explain why the transactional process (I will give you this, now you have to give me that) doesn’t work because there is always a scorecard. The value of the referrals may also be the different — think of the monetary value for two referrals to a florist vs. two referrals to a realtor.

If you try to use coin-operated networking, it will absolutely, categorically fail.  To get maximum results from your networking efforts, it is imperative to understand the full concept of Givers Gain.  When you work with other people and genuinely invest yourself in creating good rapport and trust with them, you will be able to build strong, mutually beneficial relationships over time.

Actively seek out ways to support and offer assistance to others in your network and help them achieve their goals and get where they want to be.  A good way to begin is to give them something that will help them. Use the gift of giving: if someone expresses a problem in their business, send them an article that may help them. By doing so, you have just opened the door to a business relationship, without asking for anything in return.

The process is about farming, not hunting.

If you have an example about how you’ve used farming as opposed to hunting, please share it by leaving a comment.  Thanks!

The Most Crucial Component for Referral Successstring(47) "The Most Crucial Component for Referral Success"

At a recent Referral Institute Conference, I was interviewed by Tiffanie Kellog (Trainer for the Referral Institute in Tampa, Florida) about the most crucial component for referral success.  Before you watch this short video where I give Tiffanie my answer, try to come up with a couple of possibilities for what my answer may likely be. 

After watching the video, I would love for you to share in the comment forum below what your initial guess or guesses were regarding what you thought my answer was going to be.  I’m very interested to see how many people had a pretty accurate idea of what I would say and how many people were completely surprised by the answer.  As always, I very much appreciate your input and participation in getting a conversation started–thanks!

Knowledge Networking vs. Referral Networkingstring(44) "Knowledge Networking vs. Referral Networking"

Most people are involved in at least two types of formal networking groups.  The first is intraprofessional networking, or “Knowledge Networking,” as Megatrends author John Naisbitt calls it.  Knowledge Networks foster self-help, information exchange, improved productivity and work life, and shared resources, according to Naisbitt, who cited networking as one of the ten megatrends impacting our society.

The second type of networking is interprofessional networking: multidisciplinary professionals and occupational types who network to increase each other’s business.  In fact, the primary purpose of most interprofessional networking groups is to increase one another’s business through referrals.

In good interprofessional networking, participants get either the majority of their business or their best business through referrals.  Organizations such as the Chamber of Commerce, Jaycees, and BNI® are typical groups in this category.  Different groups offer different strengths and weaknesses in helping to generate word-of-mouth business and it’s important to look closely at the makeup and structure of the various organizations that you might join before selecting those that best fit your needs.

If you haven’t had much success in business organizations in the past, don’t let that get in the way of doing what needs to be done to build your business through word of mouth today.  The best way to begin the process of building a referral-based business is in a group or groups of other business professionals.  The only alternative is to meet one person at a time, which inevitably means you’re going to be working harder, not smarter.

The only people who are going to make referrals for you consistently are people who know you and trust you: your friends, associates, customers, patients, clients, peers, and family members.  Strangers are not going to consistently give you business.  You need to start spending time with the right people in structured professional environments.

If you’re interested in building your business through referral networking, here are four tips to help you do it efficiently:

  • Join several different types of networking groups and diversify your word-of-mouth activities.
  • Develop your company into a Hub Firm, a firm that other companies rely on to coordinate efforts in providing effective services.
  • Don’t be a cave dweller.  Get out and meet other business professionals in the myriad of business organizations which exist for that purpose.
  • The only people who are going to make referrals for you consistently are people who know you and trust you.  You need to start spending time with the right people in structured professional environments.

Do you have any additional tips or tactics which you’ve found particularly effective in building a referral-based business?  What has worked best for you?  I would love to hear your insights so please share your thoughts in the comment forum below.  Thanks!

Lollipop Entrepreneurstring(21) "Lollipop Entrepreneur"

Understanding your behavioral style and how it relates to your networking is extremely valuable.  Most importantly, learning how to identify behavioral styles in others and learning how to adapt your own approach to those different styles can really make a difference in your referability.

Often times your behavioral style can be observed at a fairly young age.  When I was 11 years old, I missed the bus to school one day. The school was only a little over two miles away and I had time, so I started walking.

Along the way I passed a gas station that had a small store attached to it. My eye caught some awesome looking lollipops – big, red, strawberry-flavored suckers. They only cost a nickel so I bought four or five of them and headed on to school. A friend saw what I had and asked if he could buy one. I said sure – for a dime. He bought it right away! That day I sold all the lollipops except the one I kept for myself . . . and I saw a great business opportunity.

The next day I walked to school again, this time buying a dozen lollipops. I sold them all before school let out for the day. I did this the next day, and the next . . . for almost a month, very happy with my margin and the money that I was starting to see growing from my lollipop enterprise.

That was my first experience in business, and it was obvious from that early time in my life that I was a “Go-Getter” behavioral style.  I am pleased to share with you that I have just released a new book with co-authors Tony Alessandra (one of the world’s leading experts on behavioral profiles) and Dawn Lyons (probably the world’s leading expert on how behavioral profiles relate to referral marketing).

How has your behavioral approach to networking and referral marketing helped or hurt your efforts.   I’d love to hear your story.

For more information on the newly-released book I mention above, please go to one of the links below.

Room Full of Referrals – Digital Version

Room Full of Referrals – Soft Cover Version

 

Are You Overlooking the Importance of Storytelling in Business?string(63) "Are You Overlooking the Importance of Storytelling in Business?"


When you tell a story, is it compelling?

In this short video, I’m joined by Deanna Tucci-Schmitt, a successful business owner and master networker, who shares the reason why storytelling is such an integral part of business.  She reminds us that stories are much easier to remember than statistics and facts.  When you tell your business’ facts in story form, your “story” is retained, retold, and often referred.

After watching the video, please share how telling some of the key stories about your business has gotten you more business in the past, or how they might possibly help you obtain more business in the future.

Andrew Hall’s “Referral Magic”string(48) "Andrew Hall’s “Referral Magic”"

How specific are you when asking for referrals?  Do you say you want business from “somebody”. . . or “anybody”. . . or do you give the name of the specific person you want to meet?

Joining me in this brief video is Andrew Hall, a master networker based in China. Watch as Andrew tells an engaging story about the importance of being specific, or as he calls it, “Referral Magic.”

After watching the video, please leave your thoughts, comments, and/or feedback in the comment forum below . . . are you now thinking twice about how specific you are when asking for referrals?  Are you going to make a conscious effort to be more specific in your “ask” when asking for referrals in the future, or do you maybe have a tactic for being specific that you can share in order to help others? . . .

Have a Positive and Supportive Attitudestring(39) "Have a Positive and Supportive Attitude"

The First Law of Notable Networking: Have a Positive and Supportive Attitude

Good networking involves providing a positive and supportive environment to other business people.  Remember this: Notable Networking is predicated upon the concept that Givers Gain®

If you freely give business to others, they will give business to you.  This concept is based on the age-old notion that “what goes around, comes around.”  If I give business to you, you’ll give business to me, and we will both do better as a result.  Networking is like a savings account: if you keep investing wisely, you can draw upon it when you need it.  One enthusiastic networker who belongs to a formal networking group told me, “The longer I’m in the group, the better I get at networking and the more referrals I get.  In addition, it seems that the more referrals I get, the higher the percentage that I close!  By developing long-term relationships, I am gaining the trust of the other members, which makes it easier to receive and close the referrals that are passed to me.”

A positive, supportive attitude also includes the way you present yourself to other people.  Everyone likes to do business with an enthusiastic optimist.  If you join a networking group, remain focused on the reason you’re there.  I see far too many people go to networks and get caught up in the irrelevant nitpicking: “The food’s no good,” “The speaker was mediocre,” “This room’s not very nice,” and so on.

With the quibblers, I share this anecdote: An airline attendant once responded to a passenger’s complaints about the quality of his dinner by asking him, “When you go to a French restaurant, do you usually order an airline ticket?”  The same rationale applies to networking meetings.  The quality of the food and the speaker should be secondary to the quality of the contacts you are making.  Don’t lose sight of your purpose.

It’s not Net-Sit or Net-Eat, it’s Net-WORK!  If you want your network to work for you, then you have to work your network in a positive and supportive manner.

In many ways, the First Law of Notable Networking involves more than attitude; it’s a way of life and a good way to do business.  When you constantly and consciously keep other people in your mind, they will do the same for you.

I’ll be posting about the Second and Third Laws of Notable Networking over the next couple of weeks so be sure to check back if you want to learn even more about how to succeed as a networker.

*Can you think of a person in your network who exemplifies the First Law of Notable Networking?  If so, take this opportunity to carry out the First Law yourself and showing them your support by recognizing that person in the comments section below.  Tell us who they are and what they do that makes them such a shining example of this First Law of Notable Networking.

The Three Laws of Notable Networkingstring(36) "The Three Laws of Notable Networking"

Over the last few decades, I’ve met individuals who have developed such incredible networking skills that they get almost 100 percent of their business through referrals.  They’ve been successful at building a word-of-mouth-based business because they’re as committed to giving referrals as they are to following up on the referrals they get.  What does it take to achieve results like these?

There are three requirements or laws for becoming a Notable (or effective) Networker.  Without applying these laws, you would find it impossible to work your networks effectively.

At face value the laws seem simple, but don’t let first impressions deceive you.  Behind these simple-sounding principles lies a comprehensive set of requirements and obligations.  If you don’t heed these laws, you will invest many hours and some dollars into networking groups but get a poor return on your investment.

The Three Laws of Notable Networking Are:

  1. Have a Positive and Supportive Attitude
  2. Learn How to Use Networking Tools Effectively
  3. Networking Is an Acquired Skill

Over the next few weeks, I’ll be going into detail about each of the above laws so be sure to come back to learn more about how you can become a truly Notable Networker and get optimum results from all of your networking efforts and investments.

Also, if you have a story about how you’ve used one or more of the above laws to achieve success in networking, please share it in the comments section below so we can all learn from your successes.  Thanks!

The Fine Line Between Comedy and Competencystring(43) "The Fine Line Between Comedy and Competency"

TR Garland (pictured with me in the photo below) is a friend of mine and co-author of one of my most recent #1 best-selling books called “Building The Ultimate Network.”  He’s also considered a top trainer for the Referral Institute. 

For some time now, we’ve both observed a need to drill down on one of the most important and foundational concepts to networking – The VCP Process®.  Nine months ago, we started a much-anticipated 12-part monthly series of blog posts which addresses this and contains some very timely information for networkers across the globe.  Today, we’re proud to share with you Part 9 of the series.  Enjoy.

THE FINE LINE BETWEEN COMEDY AND COMPETENCY

(Part 9 of 12 of the “Navigating The VCP Process® To Networking” Series)

In Part 1, Part 2, Part 3 , Part 4, and Part 5 of this series, we introduced and re-introduced the concept and steps of The VCP Process® to Networking for our readers through brief anecdotes, relevant comparisons, and sometimes even humorous situations.  For Parts 6 and 7 we even shared with you video trainings from the both of us.

Last month in Part 8, we suggested some behaviors that you can use on a weekly basis to increase the number of referrals you receive.  And, as a result, we got a couple phone calls complimenting us about how last month’s blog post clearly outlined what type of behaviors a successful networker should be practicing on a weekly and monthly basis – and we were asked to provide more.

Exactly three weeks ago, I posted in this very blog about The Ten Commandments of Networking a Mixer.  I’ve been talking about these specific 10 guidelines for years that I recommend people follow when attending Chamber functions, Association meetings, and various business mixers.  I’ve been interviewed on radio and television before and many times I bring up these same 10 guidelines.  And I’m so committed that they should be a part of a successful networker’s toolbox that these same 10 guidelines are taught in-depth in Referral Institute regions all across the globe.

After reading my recent blog post about the Ten Commandments of Networking a Mixer, TR came to me with a smirk on his face and began some mischievous questioning.  He started by mentioning Harvey Mackay’s “take” on the same exact topic.  Now, Harvey is a friend of mine and I’ve even invited him to speak to my networking organization before (of course the audience absolutely loved him).  So, I proceeded to ask TR where he was going with his questioning.

TR replied, “In Chapter 71 [Yes, Harvey’s books have that many chapters] of “Dig Your Well Before You’re Thirsty”, Harvey writes about The Ten Commandments of Networking as wellAnd, according to him, Commandment #2 is:

~I will NOT confuse visibility with credibility – mine or anyone else’s~

Ivan, I believe that’s a pretty powerful guideline that successful networkers should follow.  Why is this Commandment not included in YOUR list?

After a very long pause, I proceeded to explain that it’s okay for different people to have different viewpoints.  And this led into a very productive conversation about how one person’s viewpoint isn’t correct, and one person’s viewpoint isn’t incorrect – they are just different.  And, this leads us to the relevance of the above story into today’s blog post in which we fulfill our blog readers’ request to provide MORE DETAILS on exactly what type of behaviors a successful networker should be practicing on a monthly basis.

In an effort to move their network (or audience) through the VCP Process to Networking®, many business professionals who are members of Strong Contact Networks like BNI meet on a weekly basis.  And, each week they are given an opportunity to say something about themselves or their business – usually about 1 to 2 minutes.  Every week, these professionals each make a choice on which topic, messaging, and subsequent behavior to display or exhibit while they are addressing the entire group or meeting.

Today, we’d like to bring attention to 2 options one could choose from:

  1. Displaying behaviors to be perceived as LIKEABLE
  2. Displaying behaviors to be perceived as COMPETENT

Which is right?  Which is wrong?  Which is right for you?  Which is wrong for you?

These are all good questions to ask and this leads us back to what my response to TR was earlier which is:  One person’s viewpoint isn’t correct, and one person’s viewpoint isn’t incorrect – they are just different.  And, let me add – choose wisely.

Therefore, someone who week in and week out chooses to use their 1 to 2 minutes to display behaviors to encourage people to like them is most certainly entitled to do so.  Some examples of these types of behaviors are:

  • Delivering jokes
  • Performing attention-getting skits
  • Rhyming
  • Reciting a poem

However, if you choose these behaviors we kindly ask that you not lose sight of the goal which is to move your network through the VCP Process® from Visibility to Credibility all the way to Profitability.  And, if people only know you for your jokes, they may surely like you and remember you (i.e. Visibility) but you may risk not ever providing them with enough information that proves you are good at what you do – which ultimately increases your chance of getting referrals from them (i.e. Credibility).

On the other hand, someone who chooses to use their 1 to 2 minutes to display behaviors to impress people and prove they are good at what they do is certainly entitled to do so.  Some examples of these types of behaviors are:

  • Sharing client testimonials
  • Announcing achievements
  • Explaining why they are “better” than their competition

However, if your network only hears sound bites of your successes and don’t ever really get the chance to truly know you as a person (i.e. the likability factor), you may risk alienating yourself as someone only focused on work.  Or worse yet, they may consider you boring.

Therein explains the fine line between comedy and competency that today’s business networkers face.  And, some may even consider it a challenge.   When moving your network through the VCP Process®, it’s recommended that you first get someone to LIKE you through various Visibility behaviors.  But, it cannot stop there.  It’s encouraged that you then commit to displaying various Credibility-building behaviors so that they believe you have the COMPETENCY in your profession to handle their referrals.  Then, you will you increase your chances of consistently pulling your network all the way to Profitability and receiving a steady stream of referrals.

In closing, today’s focus has been simply to expand your thought process on exactly what options you have available to you when it comes to which behaviors you can choose to display to your network on a weekly or monthly basis.  Displaying behaviors that allow you to be perceived as both LIKEABLE and COMPETENT is our recommended solution.  Combine them together and interchange them back and forth when relevant to make sure your network truly likes you and also believes you will take great care of their referrals.  One without the other or used too infrequently may not deliver you the results you expect from your networking efforts.

We thank you for reading today’s post and extend an invitation to be on the lookout for next month’s contribution to this series – Part 10 called “Authenticity is the ‘New’ Audacity.”

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