For any business to succeed, the business owner needs to spend a lot of time in designing his product or service, designing how he’s going to market it, design how he’s going to execute it and distribute it and all of those components.
But there’s one component that very few business owners invest creative time in, and that’s the referral process.
Referral process is a unique dynamic that requires an approach that works and creates the results that you want.
Fundamentally, the referral process is about reaching out to people who can refer prospects to you.
The second question is their willingness to refer.
How’s that willingness going to come forward? Is their willingness based on some incentive that they’re going to get, some finder fee that they’re going to get, or is it a brownie point that they’re going to get? Because unless you really figure out what’s in it for them, either it can be in monetary terms or non-monetary terms, that is one thing that needs to be perfectly identified.
The second is how can they refer you? And most business owners are not able to clearly define.
If you ask them a question, how can I refer somebody to you and you will give them some broad, vague answers which leaves that person completely lost.
And if you tell them, okay, who’s your target audience and you tell them the demographic and the psychographic, it’s too much information for him to contain in his head.
It becomes like heavyweight lifting to try and find somebody to refer to you.
Now, when I look at all the people that I know, less than 5% of these people, I’m clear on giving them a referral.
What about the 95%? If these 95% of people who know me, like me, trust me and I know them, like them, trust them, if they take time to actually create a referral program, which gives me the basics on how to find the correct person to refer, how to refer, what happens next, so that I can then get into that play.
And for most of these people I just want to do it because I want them to succeed.
That’s what’s in it for me because it’s a goodwill that comes into play there.
If you really, really look at the referral process as something that is distinct and it is as important for you to spend time in creating and crafting a referral process that works as it is for you to create and craft a product that works, then you will start looking at this as a very creative and a very innovative approach.
And you will take on metrics in, okay, how many referrals am I getting? What is the quality of referrals? Can I go back to the person and say, hey, thank you for this referral, and if you can sort of put this in, or look at it this way, probably you will be able to refer better quality people to me who I can really serve.
That is the whole totality which I find missing in how you can make a referral process that is very, very successful.
Video reference number: 022010