Networking Tips: How to Give a Good Referral
Big Hug or Big Shrug?
I'm so honored when a networking contact refers me to someone. Just want to give them a big hug to thank them for thinking of me and, in some cases, steering some sales opportunities my way.
But for some referrals, I hate to say that I really don't want them. Really, I don't. And it's not that I don't want referrals. I just don't want bad referrals that will only waste my time, as well as possibly ruin my reputation and that of the referring party.
So what is a good referral?
What is a Referral?
Many networking groups and associations differentiate between "leads" and "referrals."
A lead is considered an unsubstantiated opportunity that merely points out potential for another. For example, someone notices that a new restaurant is opening and he alerts a marketing consultant in his network of the new restaurant. Typically, no personal introductions are made. The person who receives the lead often pursues it blindly. This is one step up from a cold call. As well, the person passing the lead may not even have permission to share any information with the salesperson. Later, we'll discuss why that's a problem, too.
A referral is considered a genuine, identified sales opportunity where someone knows of a current and real need of a friend, family member or colleague that could be handled by a networking partner. In these cases, the two parties are introduced to each other, identifying the need to be addressed. Consent to introduce is a key element of these introductions and is the first element in the following formula for more successful referrals.
Have you ever received a bad referral?
The C.A.R.E. Formula for a Good Referral
Giving a referral is a sign that you care about the people you are referring to each other. But a referral must meet some criteria in order to be of value to everyone. So here is a quick formula to test a potential referral opportunity BEFORE you engage anyone.
Using C.A.R.E. as an acronym, here are the elements of a good referral:
"C" is for Consent. Before you blindly blast off an email or social media connection to two potential referral connections, get consent from both. For example, say that you know Referral Partner A would be an excellent supplier or resource for Referral Partner B. Before you email contact info to either partner, you'll want to ask both separately and privately if they are interested in connecting. If both agree, then a connection is warranted. Additionally, in today's era of concern over data privacy and sharing of personal information, this aspect of sharing referrals is critical and cannot be ignored!
You might be thinking, "Why wouldn't Partner A be interested in connecting with Partner B as a potential customer?" Seriously, I have received innumerable forced referrals over the years that were totally inappropriate potential clients for me. These junk referrals not only wasted my time, but had the potential to harm my reputation since I was seen as someone who was unable to serve the prospective Partner B customer's needs. As well, Partner B could peg the person who made the referral as someone who doesn't have a competent network and/or who can't professionally evaluate sales opportunities. Which brings us to the next element in the formula...
"A" is for Actual. Sometimes people want to impress either the person they're referring or the person who will receive the referral. So they connect colleagues in their network, regardless of whether an actual opportunity exists or not. Can these lead to sales at some point in the future? Sure, it's possible. But sometimes it's a long shot. If no immediate or imminent need exists, don't personally connect the parties.
"R" is for Relevant. Just as with actual need, a referral must be relevant for both parties. For example, I am a self publishing coach for business books. So inquiries for people who are looking for an author agent for fiction are not relevant to me, even though both I and the author agent work with authors on books. Make sure that you understand both the needs of your friends or colleagues and the source you are referring to them.
"E" is for Exit and Evaluate. Once you have properly introduced two parties, it's usually best for you to exit the transaction picture and let them explore the potential opportunity themselves. However, it doesn't hurt to follow up and evaluate whether the referral was a success, after a sufficient amount of time has passed for the type of business and people you are referring. You do want to know whether you should refer these people to others in the future. As well, you want to get an idea if your referral radar is working properly. If it isn't, you'll want to get to know your network a whole lot better!
Checklist for a Good Referral
Here's a checklist of items that make up a good referral. IMPORTANT: When contacting each party for the referral, do NOT reveal either party's name or info until you receive permission privately from each one.
- Name of person(s) being referred.
- Preferred method of contact for all parties (email, phone, social media, etc.).
- Contact info for preferred method.
- Best time to reach (if known).
- Exact product or service of interest and/or other reason for contact.
- Best way to schedule appointment (if known).
- Budget for purchase (if applicable and known).
Disclaimer: Both the publisher and author have used their best efforts in preparation of this information. No representations or warranties for its contents, either expressed or implied, are offered or allowed and both parties disclaim any implied warranties of merchantability or fitness for your particular purpose. The advice and strategies presented herein may not be suitable for you, your situation or business. Consult with a professional advisor where and when appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other damages, including but not limited to special, incidental, consequential or punitive, arising from or relating to your reliance on this information.
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© 2016 Heidi Thorne