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Let's Discuss: Referrals -Giving & Receiving2728

Student TParker private msg quote post Address this user
I know that several of you are power-networkers, so I'm sure you have experience in managing referrals. I've written on the topic, but don't have a lot of practical experience (IYI). I know that in some industries there is are understood rules that money changes hands when referrals are made.

However, I'd like to discuss the referrals that you give and receive without monetary compensation.

How and when do you refer someone to a friend or colleague?

When you receive a referral from someone in your network, how do you express thanks?

It is such an honor when someone trusts your work enough to tell their friends about you. Does anyone feel extra pressure when someone else puts their reputation on the line by recommending you?


BTW: For those who are considering investigating how to use referrals for your business, they coined a new name for the process. It's called "Connection Marketing" now.
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Forum Owner Belew private msg quote post Address this user
Connection Marketing ... heard it first from you.

Those are great questions and I am interested in the answers of others as well.

I think I learned the lesson far too late. If I know someone who can do a job that I can't for someone else, I refer them. No questions asked and no expectations of being paid a commission or otherwise.

This past weekend, I got three referrals at a conference from a fellow who attended a Meetup of mine some other time. He asked for nothing. And I don't think he was paying it back or forward or sideways for something I gave him at a Meetup. We just saw an opportunity for one another and shared.

I know a fellow who seems to be one to two people away from just about anyone. A frat brother is now working here or there ... that kind of thing.

He'd be able to kill the whole connection marketing thing.
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Teacher Rev private msg quote post Address this user
"Connection Marketing" is actually the trademarked name of a company founded in LA in 2005. The name is also used by several other companies so, at some point, there is likely to be a round legal battles.

The more generic term, relating to the same concept, is relationship marketing. It's been around a long time but the modern focus began with Seth Godin and Joe Vitale in the late 90s and early 00s.

It is embodied in the concept of inbound marketing.

Second only to organic (46%), referrals account for about 29% of website traffic and web business over all.
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Student TParker private msg quote post Address this user
One of my first gigs involved reading a book about relationship selling. It has been interesting to learn more about the concept and see its application outside of direct sales.
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Teacher SusanDay private msg quote post Address this user
I used to belong to a networking group that calculated the monetary benefit from each referral. Our group was one of the most successful in the region because the referrals earnt a lot of money. However, this was because everyone genuinely cared about everyone's success. It was a group of 30 people who happily recommended other businesses because they knew and trusted the workmanship and expertise of each member of the group. I'm still friends with a few of those people and we still refer to each other if we can.

In my honest opinion referrals only work when they are done with no thought of return and are genuine.
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Top Contributor Steve private msg quote post Address this user
Referrals ... isn't every business built on referrals.

I use and teach my clients to use a referral script to generate referrals ... and the different types of referrals ... referrals are generally given freely with no expectation other than to appreciate a job well done (in some way).

Some great info in this thread...
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Teacher Rev private msg quote post Address this user
Quote:
Originally Posted by SusanDay
referrals only work when they are done with no thought of return


Quote:
Originally Posted by Steve
referrals are generally given freely with no expectation other than to appreciate a job well done


Absolutely. And not only referrals. If you build your entire business this way -- indeed your entire life -- you will be amazed at the positive growth you will experience.
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Member uzorhenry private msg quote post Address this user
I have been wondering about reward system for referrals, i'm recently managing a new eye hospital in Nigeria it is standard to get referrals from other health care providers in my locality, wouldn't we just give all our profits away rewarding referrers? i conclude you seek for referrals without any reward save in kind.
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BKatt private msg quote post Address this user
@tparker Regarding your question of expressing thanks, a brief handwritten note or email/test is usually appropriate and effective. It

- acknowledges their choice and efforts to refer you.

- shows your appreciation.

- subtly encourages them to send you more referrals in the future. (I would not ask for additional referrals in that thank you note.)

It's not the note or a gift itself. It is the attention you give via a note or gift that is your best expression of thanks.
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Forum Owner Belew private msg quote post Address this user
Quote:
Originally Posted by BKatt
It's not the note or a gift itself. It is the attention you give
Excellent insight!
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Teacher Rev private msg quote post Address this user
Quote:
Originally Posted by uzorhenry
seek for referrals without any reward save in kind


Mr. Henry (good name!) I tend to agree with you on this as I prefer inbound marketing methods. However I do pay some people for referrals. The amount is directly related to the income that results. There is value in this when the lead (or job) is well qualified. My last four referrals resulted in several hundred dollars being paid out. I know it will lead to subsequent good jobs as well, thus justifying the amount.

Empty leads would produce no referral payment. Small or low priced jobs likely none either (just reciprocal suggestions), higher paying jobs produce referral payments.
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Teacher Rev private msg quote post Address this user
Quote:
Originally Posted by BKatt
It's not the note or a gift itself. It is the attention you give via a note or gift that is your best expression of thanks.


Another good form of engagement.
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