I love referrals. Hearing my phone ring, with a pre-qualified new client on the other end of the line, asking if they can work with me, is the sweetest sound on earth. I didn’t have to convince them I was a valuable resource. I didn’t have to “sell” them anything. I didn’t have to explain what I do, spend any money on marketing, or defend my pricing. They came to me, ready to sign on the dotted line. Referrals are magical that way.
Did I tell you I love referrals?
Of course, you know that referrals don’t just happen. They aren’t that magical. You have to set the stage, you have to do something first, in order to get them. And what you have to do is to have these two things in place, first — because without them, referrals just won’t happen.
#1. You need to have a consistently great product and/or service
I can hear you now, saying, “That’s a no-brainer, Marcia, geeze. I know that.” Of course you do. Just keep it in mind — it has to be great, and it has to be consistently great. No one refers anyone who doesn’t have a consistently great product and/or service.
#2. You need to have a rock solid reputation for taking care of people, for doing what you say you’ll do, for fulfilling on your promises
Did you ever sign up for something because their promotion was so good, only to be let down when you got the product, even if it was still a good product? Uh huh, me too. As soon as my check had cleared the bank, the person I so excitedly and hopefully signed up with was gone, leaving me with their assistant, while they went off to make another sale. I still got a good product, but I didn’t feel taken care of. Do you think I whole-heartedly refer them? Huh uh, no. I don’t.
You see, the thing about referrals is that they reflect on the person giving them. That’s so important that I’m going to say it again: the thing about referrals is that they reflect on the person giving them. That means that if Billy Bob refers you to his cousin Ted and your product isn’t consistently great and Ted gets some of the not-so-great product, he’ll tell Billy Bob, and Billy Bob will feel like a schmuck for referring you to Ted. Do you think he’ll refer you again? Nah. He won’t.
And if Anne Marie refers you to her boss and you don’t take care of him like you said you would, and don’t do what you say you’ll do — oh my goodness, how do you think that’s going to play out? Anne Marie is going to be mighty upset with you, and there go any future referrals from her.
Referrals imply a huge feeling of trust — huge — that your product will be great and that you’ll really take care of the person they’re recommending. The referrer wants to look good by referring you, not like a jerk for referring you.
If you’re into research and quantification, Fred Reichheld wrote an excellent book on this subject called The Ultimate Question. Extensive research was undertaken by Reichheld’s firm, Bain & Company, that determined this one question, “How likely is it that you would recommend this company to a friend or colleague?” allowed companies to measure the organization’s performance through its customers’ eyes, and in industry after industry, is the single most reliable indicator of a company’s ability to grow.
Start asking yourself how likely it is that your clients would refer you or your company. Or just ask your clients.
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{ 7 comments… read them below or add one }
Hi Marcia,
I totally agree. I’ve worked from referrals only for years now. Never have to worry about getting clients and it’s because of all the right reasons such as you’ve written so perfectly here. Great advice!
After reading this, Marcia, I can certainly see the “risks” involved in giving someone a referral that turns out to be less-than-stellar.
What if? What if? What if?
I believe the same concept holds true in friendships and other relationships. WHO YOU HANG OUT WITH matters. You are a direct reflection of those individuals.
Wonderful pointers!
Melanie
Wow, Deb, congratulations — you’re in the perfect situation, and so glad to hear it. That’s where we all want to be!
Melanie, you’re right. So much of what we do reflects on us. Food for thought, huh?
Marcia
Hi Marcia,
You are so right! Referrals are great, but the way that to build a referral network is to sell people on you, not on “your stuff”!
Congrats on post 23 of the 30 Day Blog Challenge! I’m hot on your heals at #18! What a fun challenge.
D’vorah
Hi D’vorah,
YES! Of course, you’re absolutely correct. It all works together, don’t you think? You couldn’t really “sell” people on you, if you didn’t have a great product or service to offer, and a rock solid reputation for fulfilling your promises. There’d be nothing for the referrals to “buy,” or anything for them to do when they got there.
And yes, I’m thoroughly enjoying the challenge, but here’s a little secret just between the 2 of us, don’t tell Connie — I’ll be glad when it’s over and I can slack off to 2 or 3 posts a week!!
I heard what you told D’vorah, Marcia!
And if you think, for one minute, that we’re going to let you slack off … think again! You’re going to have so many thorns poking you in the side, the only thing that will get rid of the pain is publishing another blog post! :-)
All fun aside, I’m looking forward to a little respite myself. I can’t believe that some of the people in this challenge have already entered the 100 posts in 100 days from EzineArticles. Not this kid! I’m thinking about going at it again in June when Jeanette Cates starts her 30-day challenge.
So don’t look for me to be showing up on the radar much for the last three weeks in May. Not that I’ll be sleeping or anything. I’ll be getting back to the mechanics and routine of working my business.
This sure has been fun, though.
Melanie
Aha! You were listening! Dang.
But yes, I need a bit of my old routine back, too. The good thing is that now, my routine has changed, and it’ll include more blog posting — just not EVERY day. And, I met some great people through this, like you!
M