This workshop was prepared by Hazel Walker – BNI Director in Indiana, USA.
Leads and referrals, you hear the two words used interactively all the time. Only, they are not the same, a lead is not a referral, and in most cases a referral is not a lead.
Let’s take a look at the distinction between the two:
Leads take little risk and little trust. People often give leads at networking events to people they hardly know. A lead can be as simple as a name and phone number, totally unqualified, or as complete as name, address, phone number and any other information the person may have. But it is still a lead.
Referrals take more work. A referral assumes that there has been some contact with the person who is being referred, and they are expecting your phone call. Just as with leads, there are many different levels of referrals, in fact 16 different shades. Following are just a few of said shades:
Level 1 – Name Only – Better than nothing, but really just a lead. Some businesses want this type of referral.
Level 4 – Authorized to use name – This says you have built some credibility with your referral source, but there is still a lot to do to close the sale. Most business people are very excited to receive this level of referral, and it is the most common referral passed between network members.
Level 7 – Introduction call – Now it’s working! You have made an effort for your referral. It says a lot about you and the person you are referring when you take the time to make a personal phone call and commit yourself to a conversation with a prospect. It requires a bit of preparation and the impact on the potential client is greater than a written introduction, because the prospect will appreciate the effort required. In order to get this level of referral, you are at least in the credibility stage of a relationship.
Level 11 – Arrange a meeting – You have now moved beyond the role of a promoter and into the role of a facilitator for your referral source. This takes trust with your referral source since they are now borrowing your credibility.
Level 14 – Assess need and interest – You have done the work of assessing the need a prospect may have for your member’s products/service, and you have gauged the prospect’s interest in learning more about it and arranged a face-to-face introduction.
Level 16: Closed deal – You close the sale before you pass the referral. The only thing your referral source needs to do is deliver the product and collect the payments.
If you and your referral source spend time putting together a strategy to move the referrals you get and give to the highest level possible, the less time you will have to spend in the selling process. You will find that you are closing more deals in front of people who want to buy from you.
The key to getting good referrals: Ask for what you want and coach others to help you.
