“Effective referral networking if done well is consistently the lowest cost form of marketing any business can employ to host sales, opportunities and profits”
Every business, particularly small, entrepreneurial or professional businesses, must have a powerful referral network and referral marketing system to grow their sales and business opportunities.
It is very unlikely (and terribly expensive) to “advertise your way to success” without substantial working capital, it simply can’t be done by the overwhelming majority of new and small businesses.
It is far more effective, cost friendly, and fun to create an effective network that grows your customers, supports your business goals, and genuinely makes you money.
Unfortunately, most business people confuse being effective at networking with passing out business cards and schmoozing at events. They are NOT the same at all.
Below are the 11 steps I recommend for creating an effective network that will help you build your business.
1. DO: Be visible and well-liked! Know lots of people and be sure they know you. Like-ability is a key attribute to being successful.
2. DON’T: Inappropriately use your acquaintances or membership lists to build your business’s marketing and sales lists. People hate being put on the spot or their activities hijacked for other purposes!
3. DO: Join and contribute to worthwhile groups and causes. You have to “put in” before you can “take out.” Be known as a generous person with a lot to give. Think of it each time like a bank account, you can’t ask for an overdraft before you build up some credit history.
4. DON’T: Grab the spotlight or Chair every committee you are on. Don’t turn down positions of leadership or responsibility (it’s a great way to build your reputation), but don’t be pushy either. Let people discover you and your skills!
5. DO: Show up! Whatever your current circle of friends and relationships, this week go someplace else! Continue to add new circles of influence and expand the range of your interests and involvements. Keep growing the circle but remember to keep in touch with your network! Plus if you have committed to a networking or referral marketing group, nothing kills credibility or reputation than flaky behaviour.
6. DON’T: Expect colleagues with similar expertise to be referral sources. They have their own businesses to run and are unlikely to share clients with you. Be realistic when reaching out to them.
7. DO: Reach beyond your profession or business for connections. Look to business owners, salespeople, managers and especially look out for “connectors”. Anyone who connects with many people in your business community and who does not compete with you is a potential partner.
8. DON’T: Rush into business relationships. Have coffee, get acquainted, but never push a business card or brochure on anyone i.e. seek to help NOT sell! Conveniently “forget” collateral at the office, and send a thoughtful follow-up note with the material a couple days later if you want to keep a “sales” relationship going.
9. DO: Make sure your business connections run both ways. Referring clients back to your referral sources before or after they do so is simply the “law of reciprocity” in action. This though must make business sense to both sides. Make sure your referrals provides increased income, more convenience, better outcomes, or other benefits for your referral sources. This is only fair.
10. DON’T: Panic or try to rush. Most successful businesses only need 3-10 great referral sources. Select and cultivate them wisely and patiently. It pays huge dividends in the long run!
11. DO: Have a plan for what customers or businesses you want to meet or be referred into. Other people can’t guess what you want or worse still they will waste your time with the wrong referrals if you are not CLEAR, PRECISE & FOCUSED on what your top targets are. Nothing screams professionalism and “refer me with confidence” than having that laser-like focus on your referral targets.
Above are my top 11 steps for effective referral marketing success for new and small businesses of all shapes, sizes and activities. All of these steps require hard work (we are not hobbyists after all), discipline, perseverance and a good plan, but will save you a fortune on any other method you might employ, and be more fun and profitable.