Do It! Marketing Blog: Marketing for Smart People™

Too many small and solo business owners get bent out of shape about referrals - they don’t get enough, or they give too many that go unappreciated, or they expect payment without ever asking for payment or making their expectations clear.

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Susan,

Thank you so much for the referral to Paul - I appreciate you.

Will keep you posted as to what develops.

Thinking optimistically - assuming Paul signs on as a client - how do you like to handle referrals financially speaking?

I'm happy to give some referral partners a 10% thank-you gift (for working with folks like Paul, the typical fee is XXXX so 10% is YYY) - some other folks just prefer a nice dinner out via a gift card - and some folks who refer business to me insist on nothing more than good karma and reciprocation when appropriate.

Just let me know and then we can bust the doors down for Paul!!

-- David

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On the other hand, when GIVING a referral, and if that referral shows up at your referral partner’s door, this version of the same note might help you STOP feeling like a martyr and set clear expectations from the get-go that you DO like to be compensated while asking your referral partner what arrangement would make them comfortable:

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Susan,

I’m so glad Paul ended up connecting with you and that you two discussed the possibility of working together. Please do keep me posted as to what develops.

Thinking optimistically - assuming Paul signs on as a client - how do you like to handle referrals financially speaking?

Some of my referral partners share a 10% cash referral fee - some other folks underwrite a nice dinner out via a gift card - and others show their appreciation in other ways (services, discounts, lavish gift baskets, etc).

Just let me know how you like to operate and that will open the door for even more introductions to great folks like Paul in the future.

I appreciate you.

-- David

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As a marketing speaker and marketing coach, I preach and teach and continually refine my own ability to stimulate more and better referrals in addition to helping my small business and professional services clients do the same. 

Although I am not a referral expert - check out my pal referral marketing expert Michael Goldberg for that - I am indeed a referral enthusiast. 

A client of mine - a consultant with a midsized firm - asked me a great referral question.

After reading this post, YOU will see where your own referral generation process may be stuck - and how to fix it. 

My client said to me, "David, I don't seem to have any problem generating referrals. In fact, my clients and colleagues are always very generous and forthcoming with referrals. The problem is not with QUANTITY - it is with QUALITY."

She went on, "No matter how successful my referral source may be, they seem to always refer me only to losers. I hate to say that - but you know what I mean. People who can't afford what we do, folks who are not decision-makers, or folks who for a variety of reasons are simply not the right fit."

Her question: "How can I get out of referral jail?"

Here are five ideas to help YOU get out of referral jail and put YOUR allies, advocates, friends and fans in the best and most likely position to refer you to the right people for the right reasons with the right fit. 

1. Ask for what you want. 

Be specific. "Business owners" is not specific. "IT managers" is not specific. "Front line salespeople" is not specific.

• "CEOs of 20-100 person companies in the food distribution industry in the Northeast US" is specific.
• "Female sales executives in the technology industry" is specific.
• "IT managers in Canadian call centers" is specific. 

Some of my clients also like to include a "phrase book" in their referral description. This means the phrases to listen for that indicate someone may be a good fit as a referral to you.

The WORST kind of referral request is, "I'll talk to anybody who needs [your product/service.]"

Stop making dumb referral requests and you'll stop getting dumb referrals.

2. Show them names, companies, and proof that you can make those people happy.

Let's face it - the reason people don't want to give you referrals is because they're putting their own relational capital (aka reputation) on the line. And that's risky.

If you can remove the risk of the referral, you will open the floodgates to getting more and better referrals for life. 

Hint: They won't believe YOU. They WILL believe your clients, past referrals, and people who have given you money and been thrilled to do so. 

Print up a sheet called "Referral Success Stories." Put in 5-7 specific referrals you've gotten over the last 12 months. Put in TWO kinds of quotes from both:

a. Clients who were referred and eventually hired you (Client success)
b. Your referral sources who are quoting how good they looked for making the referral (Referral success)

3. Tell them exactly what to say or send.

I hate to repeat myself so let me simply point out this post on the power of referral blurbs. Follow the templates given here to create your own referral blurb and START USING IT.

4. When a bad referral comes in, give some referral coaching.

When you get referred to a dud, diplomatically tell your referral source why it wasn't a great fit AND how they can tune their radar better next time.

Here's the template you can adapt to your own situation, style and tone. This is a delicate communication so you will want to re-word this carefully. Definitely not a cut-and-paste cookie cutter response but here's your starting point: 

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Michelle,

I've kindly and gently turned down the opportunity to pursue a business relationship with [referral name.]

Too many red flags and especially after listening to his concerns, he's just not a good fit for us.

Thank you very much indeed for the referral - and in my book, it still counts. (EVERY referral counts no matter how it turns out!!)

If this causes you any strain in your relationship with [referral name] (and I doubt it will), please accept my apologies in advance.

For the record, his PROFILE was perfect - [DESCRIBE 2-3 ideal qualities about the referral.] The disconnect was in OUR FIT with his expectations and [lack of budget, lack of need, lack of authority, whatever was missing] -- two factors over which YOU had no control.

Always appreciate your advocacy, guidance and friendship.

-- David

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5. Ask smart Referral-GIVING questions to generate smart Referral-GETTING answers. 

If you want to increase both the quality and quantity of your INCOMING referrals - the fastest way to do that is to increase your OWN track record of GIVING high-quality referrals. 

And to do so, you need to stop guessing and start targeting. 

Become a referral detective.

Learn to ask consultative questions of your current clients, vendors, partners, suppliers, friends, colleagues, and networking associates -- anyone to whom you wish to GIVE more targeted referrals. 

Your questions might include: 

1. Who is your best client and why?
2. How did they come to you? 
3. What situation were they in? 
4. What did they say or do to show interest? 
5. How could you tell they were a great fit? 
6. How have you tried to get more just like them? 
7. What should I be listening for? (Ask for details and specifics)
8. What's the DNA of a great prospect for you? (Ask for details and specifics)
9. What phrases, key words or problems should I be listening for on your behalf? 
10. What wants, needs, desires, and aspirations do your best clients have in common? (Ask for details and specifics)
11. What heartaches, headaches, obstacles and challenges do your best clients have in common? (Ask for details and specifics)
12. If I programmed my GPS to home in on perfect prospects for you, what would those settings look like? (Ask for details and specifics)

Wow.

That's all I can say. 

Sometimes, a piece of marketing stupidity comes across my radar that is:

a. Almost impossible to believe

b. Too dumb not to share with you as a cautionary tale

Here's an email I just got from a video producer whom I personally KNOW* (and who shall remain nameless to protect the moronic):

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From: "jackass@VideoCoNameChanged.com"
To: David Newman <david@doitmarketing.com>  
Sent: Wednesday, February 22, 2012 3:26 PM 

Hi there:  

The attached is something new for 2012 which should make it easier to understand all the kinds of services we provide here at [Video Company Name Changed].  Hope this makes it easier to recommend us to others in the future. Thanks and hope all is well with you! 

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Let's review what's wrong with this picture:

1. He sends a mass email to his database with the salutation "Hi there" even though this is a guy who knows me personally, has done business with several of my clients (not on my recommendation, you can be sure), and - if he had a clue as to how to work his email system - could at least have bothered to do the mass personalization required to make this note say "Hi <fname>" to call all his contacts by name. 

2. I was not really having a hard time understanding "all the kinds of services we provide here at" his company. What I now DO have a REAL hard time understanding is why ANYONE would refer such a self-centered goofball to their clients and prospects.

3. "Hope this makes it easier to recommend us to others in the future." Again, I was not losing a lot of sleep over how challenging it was to recommend this guy. Solving THAT problem is a priority for HIM but not for ME (or YOU for that matter).

You know what would make it a lot easier for me to recommend this guy? If he actually provided me with some REAL VALUE. Some insights, tips, recommendations, resources, tools, and ideas to make ME more successful - not him.

4. "Thanks and hope all is well with you!" This totally inauthentic closing simply rubs salt into an already raw wound. Is this guy kidding? His whole tone, approach, and message is "ME ME ME ME" and he "hopes I'm doing OK" while fighting throat cancer, desperately scrambling to put my parents in a nursing home, and heroically trying to make ends meet in my struggling Jewish delicatessen in the middle of the Bronx. Yeah, right - I'm overcome with this idiot's genuine concern for me and my wellbeing.

The worst part of all this? 

He's a phony. A fake. A fraud. And a taker. This is the worst kind of professional services provider there is. A snake in sheep's clothing. [Do snakes wear sheep's clothing? I dunno - this one sure does!!]

You know what would have been 1000 times better? 

Give me some value. Give me some REASON to want to help you. Personalize your note. Or [God forbid] don't send me a mass email at all and reach out 1-on-1.

This guy has a paltry list so it's not like 1-on-1 outreach to his potential advocates, allies, friends, and referral sources would be so hard to do. FYI I don't fall into any of these categories for him (clearly!!)

You want to do better? Sure you do. So leverage your referral blurb. Create one, share it, use it in good health. 

And don't be like this jackass video guy or this moronic firm I wrote about earlier. 

Please, please, please - don't give me more fuel for the "Jackass Marketing" column. 

* Please note the video firm in question is NOT my video firm. In fact, if you want to get a kickass corporate video or do some video shooting or editing work, I strongly recommend Rob Kates of Professional Speaker Video. HE does a great job AND he knows how to conduct business like a professional, NOT like a goofball! (Speaking of goofballs, this post is worth reading as well about creating your own 9-point Goofball Prevention Screening tool.)

What do you think? Is this too harsh? Not harsh enough? How would you react to the note above? Please share your thoughts in the COMMENTS area below...

p.s. If you'd like some personalized help - and your very own customized social media scripts, email and phone outreach tools, a killer email signature file and more, check out the Small Biz Outreach Action Packs.

What does your referral blurb look like?

Excuse me? What?? You don't know what a referral blurb is?

Hmmm... don't tell me, let me guess: 

• YOU are not getting enough referrals
• You'd like to get MORE referrals but you're not sure how
• You HATE asking for referrals
• You do GREAT work - people should just refer you on the basis of your great work alone, shouldn't they?

Well, maybe all of that is true - but as it turns out, my friend, you are living in what we marketing coaches call "Referral Fantasy Land."

Want more referrals? OK listen up. 

YOU need a referral blurb. My friend, management training expert Eric David shared this idea with me. I wanted to introduce him to the CEO of a small 10-person professional services firm, one of my clients. He said, "David, that would be great. I'll send you the email."

I asked Eric, "What??"

He said, "I have an email ready to go that contains everything you need to send your CEO contact about meeting me, what I do, and why it might make sense for him." 

Dang... I was impressed. He says, "I'm building my business 100% through three strategies: 1. Personal networking; 2. Referring good people I know to others they should be connected to; and 3. Arming my network with this paragraph of email copy - his referral blurb.

You want to see what this looks like, don't you? Sure you do... OK you win:

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Dear XXX,

I want to introduce you to my friend and colleague Eric David. Eric is the Delaware Valley licensee for Crestcom International, a leader in management and leadership training. After meeting with Eric and hearing about his training program, I think his materials and training methodology make a lot of sense (and could really benefit your organization). I suggested that you would be a great person for him to meet and feel completely comfortable asking if you would be open to meeting him for 30 minutes or so. Based on what I know about Eric and Crestcom, this 30 minutes will be well worth your time and there is no obligation if you are not interested after the half-hour meeting.

Thanks in advance for giving this your thoughtful consideration. I'm looking forward to hearing back from you soon.

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Now, as a marketing speaker and marketing coach, I asked Eric 2 things: 

1. Do you mind if I steal this?

2. Do you mind if I try to improve it?

He gave his blessing, so here's my version. Notice that I changed not only the business (I'm a marketing coach, he's a management trainer) but I also tweaked some of the "ME" language into "YOU" language aimed at the recipient. Made it more about THEM. This is key. Take a look:

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Dear XXX,

I want to introduce you to my friend and colleague David Newman. David works with small business owners and independent professionals who want to do a better job of marketing themselves and grow their business. After meeting with David and exploring how you are currently attracting, engaging, and winning clients, you may discover that his marketing programs make sense for you (and could really benefit your bottom line). I suggested that you would be a great person for him to meet and feel completely comfortable asking if you would be open to meeting him for 30 minutes or so.

Based on what I know about David and his track record of helping small and solo business owners succeed - even in this economy - your 30 minutes will be well spent, even if it's just to explore other ways you might be helpful to each other. Thanks in advance for giving this your thoughtful consideration.

I'm looking forward to hearing back from you soon.

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OK, now it's your turn. You ready? Use this template:

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Dear XXX,

I want to introduce you to my friend and colleague [YOUR NAME]. [FIRST NAME] works with [TARGET BUYER PERSONA] who want to [SPECIFIC BENEFIT or OUTCOME]. After meeting with [FIRST NAME] and exploring how you are currently [VERB STATEMENT OF AN IMPORTANT GOAL OF THEIRS], you may discover that his [TOPIC EXPERTISE] programs make sense for you (and could really benefit your bottom line). I suggested that you would be a great person for him to meet and feel completely comfortable asking if you would be open to meeting him for 30 minutes or so.

Based on what I know about [FIRST NAME] and his track record of helping [BUYER PERSONA CATEGORY] succeed - even in this economy - your 30 minutes will be well spent, even if it's just to explore other ways you might be helpful to each other. Thanks in advance for giving this your thoughtful consideration.

I'm looking forward to hearing back from you soon.

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Send your referral blurb to 10 of your trusted allies, referral partners, and close business friends... and then leave a comment back here to tell me how much money you've made with this one incredibly powerful idea - your referral blurb.

Grab your FREE copy of the Strategic Marketing eBook.

And then leave a comment below with your questions, thoughts, and advice on the ideas above.

Are you a DO IT freak? Welcome to the club!! Please use the social media buttons at the top of this post to share it with your network. YOU are a rock star!