According to a report in ScienceDaily (Feb. 11, 2011), “a study of the biotech industry has revealed that opportunities which arise, and whether or not they are exploited by biotechnology entrepreneurs, depends to a large extent on how well connected is an individual business person and how well they mobilise their social network.

“Cristina Sousa and colleagues at “INETI,” the National Institute of Engineering, Technology and Innovation, in Lisbon, Portugal, explain in the International Journal of Entrepreneurship and Small Business that success is determined, not only by an entrepreneur’s capacity to identify an opportunity, but also by their ability to mobilise resources and skills.

“An entrepreneur’s established network and the ability to create new, useful connections is usually the key,” the report says.

You might think this is nothing new. We all know networking is key to success in business (although its amazing how many people will still rely heavily on cold calling and advertising).

However, the major point here is that…

1. It’s not what you know
2. It’s not who you know

3. It’s what you know, about who you know. Get it?

Being connected to a huge network has its uses. But being connected to a handful of influential people – who you get to know well and who get to know you well – can help you conquer the world!

This week we are focussing on getting good referrals.

Let me ask you, what do you need to do for your members to get GOOD QUALITY referrals?

Wait for responses and repeat 2 or 3. Then say….

From a BNI perspective, the following are three mandatory things you need to do:

Explain your business well and in detail

If you want members to refer you to high quality referrals, then they need to understand very clearly what you do. They also need to understand what you don’t do. How can they do this?

Wait for responses and repeat 2 or 3. Then say….

Take time – this does not happen overnight

Be very clear about what it is that you do

Be prepared – both for your 60-second infomercial AND your 10 minute presentation

Do a Dance Card EVERY WEEK

Earn the respect of the other members

You will only get referred to other members’ clients and contacts if they respect you.

How can you ensure that they do?

Wait for responses and repeat 2 or 3. Then say….

Demonstrate your professionalism by ALWAYS being on time for meetings

Stay for the full 90 minutes AND show that you are involved

Offer to assist rather than waiting to be asked

GIVE high quality qualified referrals

Get to be liked by the members

People do business with people they like.

How can you ensure that they like you?

Wait for responses and repeat 2 or 3. Then say….

Be natural and be yourself

Take a genuine interest in other people

Be positive and optimistic

Getting Good Referrals is all about the BNI philosophy – Givers Gain.

You will GET good referrals if you GIVE good referrals.

It takes time and it does happen.

If people know your business, like you and respect you, you will receive referrals!

The Referral Master®

Start by saying….

I want to start this morning by asking you all a question to which I want an immediate response – don’t think about the answer, just respond please.

How many of you actively worked last week at finding referrals for one or more members of the chapter?

Wait for responses or show of hands.

More to the point, how many of you worked really hard at getting  just one referral?

Wait for responses or show of hands.

Can anyone see something wrong with this approach?

Seek agreement from at least some of the members. Then say…

The real secret of referral finding is that you don’t! I will say that again. The real secret of referral finding is that you don’t.

They find you.

If you are planning to “work hard” at finding referrals, that is just what it will be – hard work. Show of hands please from those members who just can’t wait to do more “hard work” this week.

So lets examine what we really should be doing? Any ideas anyone?

Wait for responses and repeat 1 or 2.

The secret is that if you know your other members well, and you know what to look for or listen for, referrals will find you.

There is a great article by BNI Director, Alice Ostrower called “Standing in the middle of a referral”. The best suggestion is that every time you hear a complaint you are standing in the middle of a referral.

How many of you have heard someone complaining about something – anything – this last 7 days.

The really successful “referral finders in BNI are those people who listen carefully to what other people say and who look very carefully at what other people do.

Then when they hear an “off hand comment” about poor service or dissatisfaction, they are ready to offer assistance.

One of the nicest things you can say to someone who has a problem is…

“I know someone who could help you with that. And better still it is someone I would recommend!”

Repeat that with me…

“I know someone who could help you with that. And better still it is someone I would recommend!”

Initially offering to help is so much more effective than initially asking for something.

Try it for the next 2 weeks and see the difference it makes.

The Referral Master®

How often do we say ‘thank you’ for a referral?

Not only is a ‘thank you’ good manners, it raises you in the esteem of others.

‘Thank you’ is also a great form of quality control. For example:

“Thank you’, that referral was spot-on…” let’s the referrer know he or she got it right and how to do it properly next time.

“I want to thank you for your referral and let you know why it didn’t quiet work… but I appreciate the thought.” This let’s the referrer know what works for you, and what doesn’t.

Instead of standing up at the end of the meeting with “I have no referrals,” why not report back on a dance or thank somebody for a referral?

Even if you have done it before and it was a long time ago, use the moment to help educate and remind the rest of your sales team on what a good referral looks like for you.

Colin Kennedy is a public relations consultant, copywriter and speaker. He is also the outsource Marketing Director for BNI New Zealand and assistant director for the South Central region of BNI.

Let me explain.

I have a client who has a very strong sales programme, but the company’s marketing is a bit thin on the ground.

I was brought on board when the sales team asked for marketing support. At a recent meeting, now knowing the client well and understanding what they were about, I came prepared to deliberately sell them on the services of a member in my chapter. Those services were a fit with the sales culture of the company.

I wasn’t waiting for any opening. I was going to make my own.

At the end of the meeting, I mentioned the service and explained why I thought it would benefit them. I then recommended the member in my chapter.

By the end of the week, he had carried out the work for them.

What was different about this was that I had identified a need my client had – even though they weren’t aware of it – and I went in there with a deliberate pitch.

I did not wait for any cues in our conversation. If I did, I might still be waiting. Or I might discover some time down the line that they had used somebody else. It was a deliberate sell that I made on my fellow member’s behalf.

Sometimes we can waste so many opportunities waiting for the right moment to recommend a referral, instead of making it happen.

Here’s one way to go about doing this yourself:

1. List ten clients. They should be people you have a good relationship with.

2. In another column, list the members in your BNI.

3. Go through the list of your clients and compare them against each member in your chapter, asking yourself if the customer might genuinely benefit from the services of that member.

4. Write down why the client would benefit from those products or services.

5. The next time you go to see your client, be ready to suggest they utilise the particular service or product you have in mind for them.

Ask them: “Have you ever thought of…? The reason why I am suggesting it is…”

Go on, give it a try.

At last count I listed 6 different methods you could use to ask for a referral.

So take 60 seconds now and see how many other ways you know of.

Let them have 60 seconds and then ask….

Did anyone get more than 6?

If someone did ask them to stand and repeat all of them.

If any are different to the following list then repeat the list and add in the new ones.

Then ask…

How many of you are using even half of these methods?

If you aren’t then now is the time to start and be able to bring more referrals to your team.

The Referral Master®

Sometime later, you call the prospect and introduce yourself: “Hello, Ms. Prospect, my name is John Businessman. Larry Source recommended I call you. I’m an accountant…”

Handling referrals this way, as you might expect, gets minimal results. Your chance of converting the referral into a customer will be greater if your referral source:

1. Makes the initial contact with the prospect (his acquaintance) to assess her need and, if appropriate, alerts her that you will be getting in touch;

2. Sends the prospect background information about you and your business;

3. Lets the prospect know the nature of his relationship with you;

4. Gives the prospect a brief description and endorsement of your products or services;

5. Arranges to introduce the prospect to you;

6. Follows up with the prospect after you contact her.

Unfortunately, if you don’t ask your prospective referral source to do some of these things, he probably won’t – not because he isn’t willing, but because he doesn’t know how these actions could make a big difference; doesn’t have enough information about you or your business, or simply doesn’t know how.

Make it your goal to communicate to your sources the actions you wish them to take and then provide them with all the materials necessary to accomplish those actions.

If you do this, I guarantee you’ll get better-quality referrals that will more quickly turn into actual business

Last week we talked about asking our best customers for referrals.

Can anyone else suggest a vast network of people that most of us have and yet few tap into?

Seek responses and repeat any you get.

The network I am thinking of is “family”.

How many of you have family living in the same country as you?

The Referral Master®

Where are the best places to find referrals?

Seek responses and repeat the best 2 or 3. Now ask the chapter…

How many of you ask your best clients for referrals?

Seek responses and ask 2 or 3 to tell their story – in brief.

Then say….

The best way to do this is as follows…

One of the challenges with small business is that many of us are single operators. Membership of BNI makes us part of something much bigger and makes us smart, well-connected business people in the eyes of our clients.

Ask the group…

Write down the names of your 10 top clients.

Prompt them to take out a piece of paper and actually write down these names.

Now let me see a show of hands of members who have approached all of these people in the last 12 months and told them about BNI – who have actually asked these people for a referral?

Seek responses. Then finish by saying….

If you haven’t, then what are you waiting for?

The Referral Master®

Begin by asking the members the following question…

Who do you want to meet?

Tell me who it is that you want to meet in business?

Give me one name?

Some of them will give you an answer but it is likely most won’t.

So ask them to do the following….

Please write down the names of three people you want to meet?

Go on, pick up a pen and write down the names of three people who you would like to be your next three customers?

Here you need to ask as many people as you have time for to say out loud the names on their list.

Now, say out loud their names, one member at a time?

Stop after each member and ask….

Does anyone here know these people?

Does anyone here know someone who knows these people?

At the end of this ask the following two questions.

1.    Will all of you who do have names, start asking for them on a rotational basis each week or every second week.
2.    Those of you who do not have any names need to think about how your team will be able to find referrals if you have not told them who to look for.

The Referral Master®