Referrals. How much are they worth to you? Are they more valuable than cold-calling? Mass mailings? Email campaigns? Give-aways?
If they aren’t then maybe we should do a little math. The average number of people that each person knows is around 300 (some would argue the number is closer to 500). If you invest the time to build a relationship with someone in an industry that compliments yours, that person can develop into a great Referral Partner. But what exactly is a Referral Partner, you might be thinking? According to the Referral Institute, a Referral Partner is someone who knows, likes, and trusts you to the extent that they are willing to promote you to others, and you the same. Arriving at this point takes time and effort, but the long-term benefits are truly priceless.
If we take this a step further and you invest the time and effort into developing 4 more Referral Partners, each in a different industry, but all that compliment yours, and each knows 300 people…
- 5 Referral Partners x 300 people = 1500 people
1500 people that can be referred to you simply because of the great relationship you have with FIVE people, or Referral Partners. Each of these 300 people that know your Referral Partner trust their opinions and recommendations. So if one of those 300 has a need that YOU can fill, your Referral Partner will strongly recommend YOU.
Would you rather bet your money on a piece of paper in a mailbox for closed business or a referral from your Referral Partner?
Keep it disciplined.