Creating the Right Referral Sources
Did you know that 88% of your network could
NOT generate a lead or a referral for you?
That’s right. Only 12% of your network is capable of creating a referral for you, of transferring the trust that they have in you.
And help you create the high quality referrals you so richly deserve, the life blood of business professionals.
And only a few members of your network can help you, no matter how well intentioned.
How can business professionals help themselves with referrals, with these sorts of odds, the 88% factor?
By creating referral sources.
By growing the 12% of their network who are their true supporters.
Why Referrals?
Ask any crowd of business professionals, “Why do you like to do business by referral?”
The answers are always the same:
- I feel so good about myself in the call. I am confident when I go to see a prospect when I am introduced by a referral
- It is much easier to close business (that’s the 34% closing rate average of a referral coming through)
- Price does not seem to be the main issue when the value of my services is made clear by my referral source or partner
And there is more. Studies show that there is more business generated in the first year of business because of the transfer of trust starting the relationship.
And that there is a greater likelihood of more referrals to follow from that relationship.
What would happen if you were to develop these key relationships further?
Here are the 5 steps to creating a whole new level of referrals with the 12% of your network who can really help you:
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Trust ~ Trust must exist in a relationship if a referral is created. It is the transfer of this trust that creates referrals. Think of trust as “social capital” that can be leveraged to develop business.
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Business Knowledge ~ This is the key change in the relationship which takes the relationship from the 88% crowd to the 12%. Selecting the right members of your network for this conversation is key. They must have the right attitude, motivation and be in a strategic position to help. And, of course, you must have the right mindset to manage this conversation. Reciprocity is king here.
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Needs ~ Understanding the needs of your prospects and communicating them clearly to your network member is critical. Just as you must learn the needs of their prospects.
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Solution ~ Learning the elements of the solution offered by your services, and that of your referral source is fundamental. And, of course, both parties must be able to articulate their solutions clearly.
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Appointment ~ The overall goal of this process is to create the all-important appointment. As you and your referral source grow in your mutual business knowledge, you will be able to raise the quality of your referrals.
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Stay tuned for lots more valuable takeaways on the topic of Referral Sources / Referral Partners in your Monday Morning Referral Tip.