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There are four magic words in the English language: “I know a guy.”
Referrals make a difference. You want to be the person they refer others to.
“If you deal with CEOs and other C-suite people, a sophisticated and nuanced referral approach is absolutely necessary,” says Scott Hamilton, founder of the Executive Next Practices Institute, a network of enterprise-level key executives where I am regularly invited to speak. “With the C-suite, budget and RFPs are almost never an issue. It is a relationship-based sale that is fast forwarded via the well-crafted referral.”
First things first. Pandemic fatigue is not a medical condition, but the struggle is real. Has 2020 got you feeling like you swallowed a giant apathy pill? You are not alone. But you may not have recognized it as grief, especially if you and your loved ones have been fortunate enough to have maintained your health.
“Grief is a natural response to loss,” says author Susan Zimmerman. “And when losses are intangible, such as loss of socializing, favorite experiences, or familiar habits, it’s important to acknowledge them. But even more vital is to acknowledge what remains and what is possible.”
Zimmerman, of Mindful Asset Planning, is a Licensed Marriage and Family Therapist and Chartered Financial Consultant. She has blended psychotherapeutic methodologies and training for businesses and her financial planning firm for over 30 years. She is author of six books. Her most recent book, Rays of Hope: Lighting the Way in Life’s Transitions and Losses, is coming out in January 2021.
When it comes to your business development needs, how do you find your way back from apathy, sadness, or isolation so you can grow your business? Zimmerman says the first step is to get in the right mental framework. The second step is to cultivate your referral partners and stay in touch. In the pre-pandemic days, there was a proven strategy of having a coffee or lunch with potential referrals sources. In a time of social distancing, that is not a recommended strategy.
Here are solid referral actions for the coming year:
Whip Your CRM Into Shape First. Digitize your outreach with a CRM like Nimble. This is simple, smart CRM for Office 365 and Google Workspace (formerly G Suite) teams. You can automatically combine contacts, social media connections, inboxes, and calendar appointments. Some of its clients include GoDaddy, Coldwell Banker and Upwork. This app allows you to tag a contact multiple times so you can easily make lists. However, do not just tag a referral as a referral. Are they an advocate or an affiliate?
Build a list of 25 advocates. Advocates are champions of you and your business who give you referrals for no monetary consideration. Advocates believe in you. An advocate likes to tell prospects that they do not receive any compensation for referring you, they just want the prospect to be well cared for. To make the advocate list there must be evidence of referring business to you. Why 25? You should contact them on a regular basis, and more than 25 can become unwieldy. There is nothing wrong with giving small gifts to advocates to show your appreciation, but it cannot be a quid pro quo for every referral or every referral that becomes a client.
Build a list of 25 affiliates. Affiliates are people who will recommend you but expect a financial reward. To make the list they must agree to be willing to refer you for a fee. Typically, this might be in the form of percentage, with 10% being a typical fee, but this will vary by industry. Some professionals, like attorneys, cannot pay referral fees. You should memorialize the agreement in writing, such as an email. This is not legal advice (I am not an attorney and do not give legal advice); this is practical because you should not rely on your memory.
Decide who you will be an advocate or an affiliate for. As you network, identify people who might make great referral sources. Start with this opener: “If you would be open to a conversation about being referral partners, that would be greatly appreciated.” The words “if” and “conversation” are soft knocks at the door.
Contact advocates and affiliates monthly. It is not the job of the advocates and affiliates to remember you, it is your job to remind them that you exist. Use a variety of means, do not just rely on email. Utilize other channels like texting, LinkedIn messages, Facebook messenger and the telephone. Be brief because you want to be aware of their time.
Teach your advocates and affiliates your elevator pitch. “Elevator pitches addressing a prospect’s threat get you in earlier in the process and at a higher level,” says Bryan Gray, founder of Revenue Path Growth and author of the upcoming book The Priority Sale (we met when he asked for my help editing the book). “Today elevator pitches can award you the next fifteen minutes of attention at the right level in an organization.”
Give if you want to get. If you want to receive referrals you need to give referrals. Let the law of reciprocation work in your favor. A place to start is to reach out and give specific recommendations on LinkedIn. Be honest and specific. You will be amazed at how many people want to return the favor.
Snail mail them little gifts to remind them you appreciate them. I have sent packets of seeds, baseball cards to wish them a happy spring, unusual paper clips, multi-colored Post-it notes, and other items I find at a dollar store. Include a note expressing your gratitude. Many referral sources say they look forward to the lumpy envelopes I send.
Be ready with an email response. Chance favors the prepared. When someone sends a referral by email, I am ready with a preset response loaded into my signature files in MS Outlook. I send the email to the referrer and the prospect. I thank the referrer for the introduction and I formally introduce myself in seven sentences and then provide a link to my calendar for a no-cost strategy call.
Offer up a template for an email they can send out about you. In mine I mention the relationship and why they might want to get in touch with me. I make it easy for my advocates and affiliates to pass along my information.
Close the loop. Do your utmost to close the loop with the referrer to tell them what happened and that you appreciate the referral.
Here is the bottom line: The time has come to leave the grief of 2020 behind and rededicate to solid business development strategies such as accelerating referrals.
