Creating A Referral Machine 3 of 7

The important first step to creating a referral machine is establishing relationships. This all begs two important questions: (1) WITH WHOM should I establish these relationships? And then even more importantly, (2) HOW do I go about establishing these relationships?

As to WITH WHOM you should establish relationships, there is no magic or secrets. They are all around you. First, start with the people you already know. Why? The people you already know, presumably already know, like and trust you. Far too often, when people embark on creating a referral machine, they become fixated on people they have never met before.

keep the gears

Think about it. You know tons of people right now – friends from the community or school, former colleagues, existing or past clients. This represents a treasure trove of raw materials with which to work.

Second, develop a list of strategic partners. Ask yourself this, we are the people that do not compete with you, but run in the circles as you would like to be running? What is the profile of a good potential client for you and who might be servicing them?

Third, everyone is connected. Everyone knows someone who might be a good potential referral for you (they may or may not realize it). This is not to say that you need to establish a relationship with everyone. What it does say, though, do not dismiss anyone. Give everyone attention and respect.

As to HOW, we cover that in Part 4.

Creating A Referral Machine 2 of 7

Just because you want this referral machine does not mean that you get it. You have to build it, and there is a process to it, a three-step process to doing so.

You start by establishing relationships. Then within those relationships (which is essentially a network of people), you empower them to not just understand what you do, but how to talk about it. Then finally, you remain in continual contact to appropriately guide and re-adjust the process. Yes, this takes work, but in the end the rewards far outpace the effort.

keep the gears

The foundation upon which you will create a referral machine is based upon the relationships you have with others. This is the most important point: people do business and refer business to those that they know, like and trust. Those who get the most and best referrals are simply those who have the best relationships. They are widely known, highly liked, and implicitly trusted.

We will cover this process in greater detail starting in part 3.

Creating A Referral Machine 1 of 7

You are ambitious. You are savvy. You want to be more successful. You want to work smarter and not harder. You know that referrals are the means of achieving that. Referrals are the most effective means of creating this greater success.

The best place to be in business, (any business or profession) is the point where your new clients are almost exclusively generated from people in your network. These are friends, colleagues, strategic partners and even former clients are sending you prospective clients.

At this point, your network becomes your sales force. In short, you have effectively created a referral machine and that machine (i.e., your network) is working for you, even when you are not working.

This begs the question, “How do I create a referral machine?” We start on this in part 2.

keep the gears

Networking And Stone Soup

In Marcia Brown’s old tale, entitled Stone Soup, plague-ridden villagers were stingy with their food and had no interest in sharing with anyone but their own.

This begins to change, however, when a peddler tells the villagers that he would like to share some stone soup with them (essentially throwing a few rocks in boiling water). This action, along with some goading words, moved villagers to become generous — one by one sharing. A head of cabbage here, some salt beef there, and voilá, before long there was a large brew collectively made and fit to feed all of them.

Brown essentially suggests that generosity and altruism are contagious. Is this just a hopeful fable? Or is there any truth to this assertion? Nicholas A. Christakis, M.D., Ph.D. and James H. Fowler, Ph.D tested this assertion and shared their results in their book Connected.

These researchers tookl set of 120 students were put into groups of four. The groups’ individuals were given some money to be used to perform an exercise composed of a series of tasks. Participants both profited and lost via these tasks in a capitalistic exercise. After each exercise, however, the individuals had the option of giving some funds to others at the expense of their own.

After each exercise, the groups were mixed up so that no two groups were ever the same throughout the experiment. In the first few rounds of exercises, no money was gifted.

Amongst the participants, however, was a plant — someone in on the experiment. This person we will refer to as the “Stone Soup Peddler.” After certain exercises, the Stone Soup Peddler started to systematically give away some of the money to others.

In the exercises that followed this exhibition of generosity, the people who benefitted from the gift, gave more. In addition, even the people who witnessed the gifting, but did not directly benefit began giving more. These altruistic gestures then began to spread through the group.

In business, no doubt, you are dependent upon others giving to you. You look for others to give you information. You look for people to share referrals with you. You need people to share insights and ideas with you.

Acts of generosity, however, are inspired somehow. That is people do not just give. Rather people are moved to give somehow, some way.

As the story of Stone Soup or the Christakis-Fowler study illustrates, you have the power to inspire generosity through your own generosity. The substance of the act does not matter. What does matter, however, is that you act, as this simple gesture becomes contagious. You can literally inspire your entire network with one small act to literally anyone. A simple referral. An introduction. Sharing of insight or information.

Any or all of this will inspire your network to give to others. In so doing, not only will you have done something wonderful, but you will also be in close proximity when the generous begins to materialize. V (Soup)