If Referrals are Important, Why are they Random?

I am always interested in learning how people generate referrals for their business.  So, when I am networking I will ask the people I meet the following questions;  How much of your business is  by referral and the response is often 50% or more.  That always leads me to my next question, do you have a tracking system or is that a good guess?  It is usually just a guess.

For most networkers, referrals are completely random and go something like this:

If someone calls me up and ask me if I know someone who can help them, and if I can remember if I know someone who can help them and if I can find the number of that person and give it to the person who just called me, and if they will pick up the phone and call the person I recommended, then they got a referral!  The average networker is very excited because they believe that their network is working.  But it is completely random and reactive.

Do you have a system for generating referrals?  If referrals are important to your business, shouldn’t you have a system that you can count on?

Shouldn’t you know who you best referral sources are?

Shouldn’t you know how and when your referrals will show up?

Shouldn’t you have a system to track your networking activities?

Shouldn’t you have a system in place for thanking your referral sources?

Really, why are your referral random?

Organizations like the Referral Institute have created programs and software to help business professionals get out of the “If” referrals to developing a system that generates referrals consistently.

If referrals are important to you then why are they so random?  With organizations like the Referral Institute and books like The 29% Solution they do not have to be.

Hosting a Private Networking Event

Hosting your own event is a great way for you to connect your network.  There is great advantage to hosting private networking events for you and your network.  You want to make sure to make the most of these events.  Here are 5 tips to make sure you are successful.

people networking

1.  Find a good location.  You want to have a place to host your guest, this can be a restaurant with a private room, your home or another location where

2.  Make a list of the network member whom you want to invite.  I try to make sure that I am putting the right people in the room so that I can introduce them to one another.  I use Evite to send my invitations, this is an on-line invitation that takes your RSVP’s, allows you to read comments and send thank you notes.

3.  Food – this up to you.  What type of event are you having, a private sit down dinner for your guest, or a more casual networking event with finger foods and drinks.  Make sure you know your budget, these do not have to be expensive events.  They can be as simple as cheese & crackers with some wine and soft drinks.

4.  Connecting your members, make sure that you are connecting members to one another.  You are the host and you know who is in the room.  If you are hosting a great event there will be new people as well as some whom already know each other.  One of the things that I often do is tell my guest that their entry requires that they bring someone to the event that I have not met.  This allows new people to be in the room and I have the opportunity to meet some knew people.

5.  Make your event regular and by invitation only.  Soon you will have a buzz of people who will want to attend your events.  My events are once per quarter with the last event of the year being a private Christmas Party.   The purpose of the events that we host are to keep in front of our clients, introduce them to one another, and introduce new people into the group. 

Give some thought to whom you would like to have in the room.  The graduates of our Referral Institute Programs are always invited, then we give thought to whom else will be in the room.  Sometimes we will ask that attendees bring their best customer, bring someone from their network who has never attended before, their boss, or someone that I the hostess, has never met before.  Having a good mix of people who know each other and people who don’t makes for a great networking event. 

These event will keep you in touch with your network, keep your network in touch with each other, and allow the network to meet new people whom they may be able to do business with.  So, next year, plan some private networking events for yourself and your network.

Are you Networking or……..

are you working your Network.  I asked this question of several of the students in our Referral Dynamics Class last week and I later asked the same question of several BNI members.  In every case they said that they spent a great deal of time working their networks.  They attended the regular meeting, connecting with their fellow members, and they indeed did work their network.

Unfortunately that is not the network I was speaking of.  That is one of the places that you go to network, I was speaking to “Your” Network.  Those people whom you have in your database, those people who have met when you have been out networking.  How much time do you put into working your network, calling them up to reconnect, sending articles to them, meeting them for coffee, inviting them to events, or publishing them in your newsletter.  Do you track your activities and whom you are spending your time on?

The Referral Institute has a very handy tool called the “Networking Scorecard”.  This tool allows you to track the activities that you are spending on your network.  Creating a proactive process for nurturing your network, so when you have a need there is no problem picking up the phone and calling someone in your network and asking for help.  After all, you have spent quality time working your network.  Sometimes it is more important that you spend time developing what you have then adding more to the mix.  Once you have developed your network, then you can spend time adding more to the mix.