Qualified Referrals

Qualified Referrals

In my last blog post, I indicated that I wanted to build a referral-based business.  How would you feel if 50-90% of your business came from qualified referrals?  Let us explore that…

When someone tells you that a business they know needs your services, that opinion is a tip and NOT a referral, let alone a qualified one.   A person who passes this type of information to you may think they are doing you a favor, but they are actually creating MORE work for you.

Why?  Because if you make a connection at that business, you will feel compelled to explain it was your friend who said that his/her business needs your services.  Let’s play that out:

“Hi, my name is Jennifer Howard and I am a business coach.  My friend and yours, Susan Smith, said that you really stink at running your business and could use a business coach.  So here I am!”

OK – I would not really walk into a business and say that.  However – I get that kind of “referral” all the time.  Actually, what I am being passed is a tip.  It is truly less work for me to build a networking relationship with someone and gain one qualified referral than 10 tips!

Therefore, what is a referral?

A referral is a solid recommendation of your product

or service to someone else.

The result of a referral is an opportunity to present

your product or service to the person whom you were referred

A qualified referral is one in which the person referring you

has “certified” that the person they are referring you to:

  1. 1. Has a need for your product or service
  2. 2. Is the decision maker
  3. 3. Has the money to pay for your merchandise or service

Would you rather have one qualified referral than 10 tips?  Why?

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