As business people we’re all very used to the end of the fiscal year coming on March 31 (IRD rejoice!). Having a fiscal year for your business we know is necessary for tax purposes. The end of the fiscal year is also the time to judge where your business is at and where it should be going, to assess how much you made in the year and plan forward with some certainty.
In the same way, tracking the dollar value of referrals made through BNI is one of the clearest ways to assess how your chapter is benefiting from the members’ collective structured networking efforts. Some chapters around the country already track the dollar value of referrals, but you might be one that is still about to.
So recapping why should you track the dollar value of referrals?
1. It clearly indicates the value of BNI to non-members. Tracking referrals can be a powerful incentive for visitors when a dollar amount is used to make reference to referrals passed.
2. It shows return on investment. Having the dollar value of referrals can be morale boosting for a chapter because collectively it shows how well members are doing from the business being generated from being part of BNI.
3. It provides a benchmark. Recording referrals over time means your chapter can establish benchmarks that help to show whether business is improving or if changes need to be made.
4. It’s anonymous. The value is recorded against the giver not the receiver, which removes the discomfort of members not wanting to reveal how much they made.
Recording the dollar value of referrals gives a chapter a clear indication of all the economic activity BNI is generating. For example, if a member refers a friend to my web development business and then this friend refers all her friends to my business, all that activity is generated from a single referral. If you don’t track this information, it can be easy to underestimate the value of this single referral. Don’t forget about repeat business either – the cumulative effect of this can be enormous.
Like keeping records for the end of a fiscal year, tracking the dollar value of referrals is a vital part of good business practice. If your chapter is not doing this already, consider starting and you’ll see immediate benefits.
