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.

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2 responses to “If Referrals are Important, Why are they Random?

  1. Referrals and being able to trace them are very important.

  2. referralinstitutenh

    Hazel,
    You have made a great point in tracking referrals. If you are not tracking referrals, how would you know who is producing referrals for you, who to spend more time with because they are producing for you or what is missing to motivate a referral source to refer you.

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