3 Tips to Help You Give a Great Small Business Referral
If I asked you which type of prospect converts the best for you, what would your answer be? Chances are, it’s personal referrals. Statistically, someone who is referred to you by a friend, colleague, or even an acquaintance is anywhere from 4-10 times more likely to purchase from or hire you because the preconditioning work is already done. Instead of entering your sales funnel or pipeline at the top, they’re already fairly sure they want to work with you – they simply need some questions answered.
Receiving a referral is something that always puts a huge smile on my face. Knowing that one of my clients or contacts trusts me enough to refer someone else is something that excites me every single time – and knowing that I’ll have the opportunity to help another business owner and their team is what gets me up in the morning.
This is why I’m always on the lookout for ways to refer other businesses to people I know. Why wouldn’t I want to bring that level of joy to another business owner?
Giving a great small business referral can be a little intimidating, though. Will the person you’re offering it to be thankful, or will they feel like you’re intruding? Will the company be a good fit for their needs? And what’s a good way to make the intro?
These are all valid questions – and today, I’d like to answer them!
Tip #1: Listen Actively
When you’re talking with a friend and hear that they’re in need of a service, it’s easy to listen actively. They’re someone that you know and care about, and the conversation is likely one they’re already invested in.
When you (or your Intake Specialist) is listening to a prospect and realize they’re not a good fit for your company, however, it becomes easier to tune out a bit. You might miss out on details that could help you refer them to the right company.
Taking that extra moment to focus and listen can make a huge difference, though – both for the prospect and for the business you’re referring them to. When you can help the right people make connections, that will cement you in their minds as someone they respect and want to work with. In time, that respect and thoughtfulness will come back around.
Tip #2: Check to Make Sure They’re a Good Fit
If you work often with a company and know exactly who they serve and what they do, it’s really easy to give a great referral. If you’re not quite sure, however, it may be worth taking a moment to confirm.
My Coaching Team and I work with a wide variety of business owners, many of whom want to create a VIP Referral Program, but the top objection we hear is, “I’ve tried that before and it never worked out. People always sent us the wrong leads.”
This is a completely valid point. When a referral is given without knowing if the person will be a good fit or not, it’s really a gamble as to whether they’ll be a good fit for each other. When someone is referred to a business and it turns out to be a poor fit, they can end up leaving the sales or intake call with a bad taste in their mouth.
What I recommend is to contact someone you know in the company – the Owner, a salesperson, or a team member who can connect you with the right person – and check whether what your friend is looking for is something they can handle. This doesn’t have to be a formal undertaking; an email, DM, or text message will do just fine.
It’s a small step, but it can make a big difference!
Biz Nugget
If you want to take this a step further, create a 1-pager that anticipates these questions and send it to your potential referral partners. You’ll have a better chance of getting the referrals you’re looking for, and they’ll appreciate you saving them precious time!
Tip #3: Make the Introduction
Once you have a good understanding of what your friend is looking for and you believe the company you’re referring them to would be a good fit, it’s time to make the introduction.
It can be difficult to know what to say – after all, an email introduction isn’t something that most of us do every day! That’s why we offer a sample email script right on our website. You can check it out here!
I wouldn’t stop there, though. People are busy, and a helpful reminder can be a huge benefit. Simply checking back in with them a few days or a week later is something that is often really appreciated.
Again, it doesn’t have to be a formal process. A simple “hey, how did it go with (name of company)?” works well! They’ll either be happy to tell you about their experience or they’ll be reminded to schedule a call. Either way, it’s a win-win!