by Stephen Labuda
I LOVE REFERRALS! If you like making easy money, then you should too! Referrals are a business person’s dream because most of the work has been taken out of the process and all you have to do is follow up properly on the referral and the business is likely yours. The fact is, though, some referrals are better than others. Knowing the difference between the kinds of referrals that exist in the world of business and how to give and get them more effectively can be the key to your closing more business and making more money.Below is a list of the 3 types of business referrals and when you should use them (OR NOT!)
1. The USE MY NAME referral-You know this one. It is the kind we as business professionals give and get all the time. Someone you know tells you to call someone they know and they say, “Just USE MY NAME.” The person giving this kind of referral may have the best of intentions, but the fact is, these kinds of referrals are really not all that valuable. unless the referral is properly warmed up, it is not likely to turn into real business. You should only use this kind of referral when it is impossible to warm the referral up or time is of the essence.
2. The VITRUAL INTRO referral-Virtual intros are great. These have come about since the advent of the internet. It is simply a way of introducing someone to someone else via email. It is a great way to give and get referrals because all parties are attached to the email. It also gives you the opportunity to explain in detail why you think the two parties should get together and do business. It also offers an easy way to follow up on the referral using the initial email text. Use the Virtual Intro email whenever you can…it is second only to…
3. The FACE TO FACE INTRODUCTION referral-Obviously, there is no better way to give and get referrals than through a face to face introduction. Introducing business professionals face to face is a perfect way to start and build business relationships. It allows the parties to chat and get to know each other a bit. Face to Face introductions are certainly the most valuable type, but it can often be difficult to get all parties in the same place at the same time. Therefore, a 3-way call works great as a second choice here. Now that technology allows us to do 3-way calls from just about any phone that exists, this can be a great way to help refer business.
There you have it, 3 types of referrals and the times to use each. Practice turning USE MY NAME referrals into Virtual Intros or Face to Face Introduction referrals and you will quickly become the star of your personal network!
There is an added bonus, by giving great referrals you can help shape the referrals you receive too!