Networking and Referrals

This is a guest post on networking and referrals by Steve Moore of SPMSolutions.

Networking and referrals remain the primary marketing strategy for many community-based small businesses (especially those with limited budgets). In contrast, many technology-oriented small businesses rely more upon online forums, social networking sites, user groups, etc., to reach potential customers. I sometimes wonder if more old-fashioned ‘schmoozing’ skills can help these companies get more customers, especially in Silicon Valley.

Two Different Things

First, we need to remember that networking and referrals are really two different things:

Networking is the act of putting yourself in an environment to meet and interact with others.
Referrals happen when someone introduces you to a third party who might benefit from what you have to offer.

I guess it’s a little like dating. You go to a dance to socialize with others (i.e., networking) and hope to get introduced to someone with similar interests (i.e., a referral). Getting a referral from someone is very special. They share their credibility by referring you to someone you may not even know. They are essentially validating that you are real, credible, and can do what you say you can do. This short-circuits the sales cycle considerably. While some referrals are nothing more than warm leads others can be considerably hotter!

So how can we all do a better job of getting referrals?

Get out there and show up where everyone else in your industry goes. Sure, many referrals made using emails and over the phone, but many more are made during face-to-face meetings.
Give more referrals! The adage that ‘givers gain’ is so appropriate. Go out of your way to refer your customers, partners, and associates to others who could benefit from their services. After a while, you’ll notice them reciprocating, and everyone wins.
Ask for referrals. It is amazing how many business owners shy away from ever reminding their satisfied customers that their referrals would be much appreciated. I would also take things further and make referrals a strategic goal instead of a casual thing.

Referrals should not be your only marketing strategy to get more clients. Still it seems like every other strategy takes more time, costs more money, and rarely gets the results that a dedicated networking/referrals strategy does.

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Networking and Referrals